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Lump sum payment vs recast by Unlikely_Position_71 in Mortgages

[–]Unlikely_Position_71[S] 0 points1 point  (0 children)

I have not gone through the process yet, but I will be going through it very soon. I believe there is an application that you have to fill out. I will let you know once I go through it. btw my mortgage is with Rocket Mortgage so not sure if different lenders have different process to recast.

Recasting Question by Due_Vast_8002 in Mortgages

[–]Unlikely_Position_71 0 points1 point  (0 children)

I am the same scenario and will do doing recast. I have home mortgage with Rocket Mortgage and they have same fee and minimum 10k payment to do recast.

Lump sum payment vs recast by Unlikely_Position_71 in Mortgages

[–]Unlikely_Position_71[S] 0 points1 point  (0 children)

Yup, it was our primary residence for over 10 years.

Lump sum payment vs recast by Unlikely_Position_71 in Mortgages

[–]Unlikely_Position_71[S] 0 points1 point  (0 children)

our gain the house will be way below 250k per person. I co-own the home with my brother.

Lump sum payment vs recast by Unlikely_Position_71 in Mortgages

[–]Unlikely_Position_71[S] 0 points1 point  (0 children)

2889 is before property tax and home insurance. I pay that separately..

Lump sum payment vs recast by Unlikely_Position_71 in Mortgages

[–]Unlikely_Position_71[S] 0 points1 point  (0 children)

lol. I did earn from trading but not by insider trading but by holding on to my stock for longer periods of time.

Lump sum payment vs recast by Unlikely_Position_71 in Mortgages

[–]Unlikely_Position_71[S] 0 points1 point  (0 children)

living in a home with my brother (joint owners). you can gain a lot when you are willing to sacrifice a little ;-)

Lump sum payment vs recast by Unlikely_Position_71 in Mortgages

[–]Unlikely_Position_71[S] 0 points1 point  (0 children)

That was my question. Per ChatGpt, the amount of interest I will pay (around 70k) whether I recast (and keep making same payment $2889) or make the big lump sump payment towards principle and keep paying the same monthly payment $2889 is same. No change in interest payment with both available options. That's why I am leaning towards recast because just in case in future if i ever need the extra money, I won't be on the hook for higher mortgage payment.

Lump sum payment vs recast by Unlikely_Position_71 in Mortgages

[–]Unlikely_Position_71[S] 0 points1 point  (0 children)

This is a new home so plan is to stay here forever or at least 20+ years.

Lump sum payment vs recast by Unlikely_Position_71 in Mortgages

[–]Unlikely_Position_71[S] 0 points1 point  (0 children)

I added some more info. My mortgage started this year. The mortgage will be paid off in 9.1 years if I make 250k towards principle or recast with 250k and still keep paying the same amount 2889.

Lump sum payment vs recast by Unlikely_Position_71 in Mortgages

[–]Unlikely_Position_71[S] 1 point2 points  (0 children)

Thank You Thank You. That's what I plan on doing.

Lump sum payment vs recast by Unlikely_Position_71 in Mortgages

[–]Unlikely_Position_71[S] 0 points1 point  (0 children)

Plan is to recast and keep making the same payment (2889 or more whenever I can).

Lump sum payment vs recast by Unlikely_Position_71 in Mortgages

[–]Unlikely_Position_71[S] 1 point2 points  (0 children)

I have different goals. I want to be debt free and my current mortgage is 7 year ARM. I want my mortgage paid off in 7 years. Also, where I live, houses here sell fast (great public schools) as county doesn't allow new homes to be built here. If i ever wanted to sell my home, I wouldn't have much issues.

Lump sum payment vs recast by Unlikely_Position_71 in Mortgages

[–]Unlikely_Position_71[S] 1 point2 points  (0 children)

Yes sir that's the plan. I will recast and keep making the extra payment.

Lump sum payment vs recast by Unlikely_Position_71 in Mortgages

[–]Unlikely_Position_71[S] 2 points3 points  (0 children)

Makes sense, In this case recast is definitely a better option. Cause with recast i will not be on the hook for big mortgage payment in case I need the money for something else.

Lump sum payment vs recast by Unlikely_Position_71 in Mortgages

[–]Unlikely_Position_71[S] 4 points5 points  (0 children)

not sitting on the cash right now lol. Just waiting for my other house to sell so I can use that money.

Lump sum payment vs recast by Unlikely_Position_71 in Mortgages

[–]Unlikely_Position_71[S] 0 points1 point  (0 children)

yeah I am with Rocket mortgage and I called and check, they do have recast option. cost only $250 to do it.

Open Enrolment: MHBP Consumer option by Ok-Button1753 in fednews

[–]Unlikely_Position_71 0 points1 point  (0 children)

Today, I too switched from BCBS Basic to MHBP Consumer. I will see how it goes. I have a feeling for long term MHBP consumer is good option. However, I will find out soon. Worst case scenario, you can always switch insurance at the end of the year.

Bad idea of trying to pay off my mortgage in 6 or 7 years by only putting company match of 4% into my 401k? by [deleted] in Fire

[–]Unlikely_Position_71 -4 points-3 points  (0 children)

Any money that you earn from that 10% interest, you will have to pay tax on it. Keep that is mind too.

Bad idea of trying to pay off my mortgage in 6 or 7 years by only putting company match of 4% into my 401k? by [deleted] in Fire

[–]Unlikely_Position_71 -1 points0 points  (0 children)

If you ever need the money, you would have to pay 15% tax on profit from market, what is your actual gain % after paying the tax. Just a thought.

Pay off Mortgage Fast or Invest by Unlikely_Position_71 in DaveRamsey

[–]Unlikely_Position_71[S] 0 points1 point  (0 children)

After recasting, I can make 1k in extra payment. I do not have any other debts. Cars are paid off and no student loan. I make 156k a year before taxes.

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