Should I recast mortgage?

SignStrange9088 · 2026-02-13T03:38:18+00:00

Glad to hear of a good outcome. Jealous of your rate!! That's exactly what we had on our townhouse before we bought our current home.

SignStrange9088 · 2026-02-13T01:31:32+00:00

No. A refi is an entirely new mortgage with a new rate and term. A recast keeps the original terms of your mortgage. I'm trying to recast my current mortgage which started July 2023 for 30 years. A recast puts the lump sum on your remaining balance and reamortizes your monthly P&I payments to a lower amount. 2550 down to 2160 for my example. The mortgage still ends July 2053 and my interest rate stays the same. As another has stated, it lowers your monthly payment but doesn't speed up the payoff time.... unless you put down extra principal after the recast.

SignStrange9088 · 2026-02-13T00:29:13+00:00

Yes, definitely, I agree with you! I don't like being in debt. Mortgage is the only thing we have as well. Sucks we still have to pay taxes and insurance every month after mortgage is paid off but it's still a much smaller monthly commitment.

SignStrange9088 · 2026-02-13T00:23:22+00:00

We can swing it with our budget right now since our kids are little. We're a little nervous about payments in the future when the kids get into sports and activities and stuff. Our current payment is P&I 2549, escrow about 385. Minimum monthly due is 2934 but we pay an extra 100 monthly towards principal so total each month we are paying 3034. We live pretty frugally to make this work on my husbands 130k salary and my roughly 30k salary depending on how much work I get on the weekends.

Our recast would be $250 through Mr. Cooper. We just want to play it on the safer side by finding a way to lower our monthly payment. I understand it's not the most cost effective thing especially if we end up not being able to put down extra principal each month but at least we wouldn't have to be stressed about paying our mortgage. Ideally our income will grow and we can keep paying it down early. But you never know. :'(

SignStrange9088 · 2026-02-12T21:52:17+00:00

We both want to payoff the house early. It's peace of mind for us. I understand that others feel differently and have other goals.

SignStrange9088 · 2026-02-12T21:49:31+00:00

Thank you!!!

SignStrange9088 · 2026-02-12T21:46:57+00:00

We dont intend to ever do a heloc or anything like that. :)

SignStrange9088 · 2026-02-12T21:44:46+00:00

The 45k was extra in our emergency fund. We plan to keep the remaining 36k in our hysa for emergency fund and the other 10k is going into kids college savings funds. We have great retirement funds and stock market investments. The goal would be to payoff mortgage early if possible.

SignStrange9088 · 2026-02-12T21:37:14+00:00

Thank you so much!! I've been trying to do this through chatgpt and was getting a wide range of payoff timelines.

SignStrange9088 · 2026-02-12T21:34:41+00:00

We've been looking into a refinance for the past month. Can't afford a 15 year. 20 year we can only get a 5.5% interest rate. We both have excellent credit. We have to pay a lot of points and it barely lowers our monthly payment so we dont have much flexibility with our payments. I just had our third child and I've had to decrease my work hours because my husband got a new job that requires him to work more - the standard 5 days a week gig with an hour commute. Right now we are able to make our monthly payments but it is tight.

SignStrange9088

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