tag:blogger.com,1999:blog-7237633934633144064.post4975159744465867798..comments2024-03-26T10:01:18.135-04:00Comments on Living the Frugal Life: Refinancing vs. Recasting Your MortgageKatehttp://www.blogger.com/profile/18017959421018964001noreply@blogger.comBlogger16125tag:blogger.com,1999:blog-7237633934633144064.post-26630812689163008892011-06-11T03:47:13.444-04:002011-06-11T03:47:13.444-04:00I understand that recasting reduces the percentage...I understand that recasting reduces the percentage of each mortgage payment that goes towards the principal and that its only advantage is a reduction in the monthly mortgage payment. However, I am wondering if it doesn't have the added benefit of improving your debt-to-income ratio. Someone who wishes to buy a second property, for example, may have too high a debt-to-income ratio under the higher mortgage payments for the bank to loan the money. By lowering the monthly debt substantially, that individually would probably qualify. Or am I wrong in thinking this? I am considering a recasting for this very reason only and would welcome advice, since I plan to continue to make large extra payments towards paying off the mortgage anyway.Susannanoreply@blogger.comtag:blogger.com,1999:blog-7237633934633144064.post-69671182878804835792010-10-28T13:23:01.927-04:002010-10-28T13:23:01.927-04:00Anon, you should speak with a professional financi...Anon, you should speak with a professional financial consultant. But in a nutshell, the question is whether you prefer to have a lower monthly mortgage payment, or pay off your loan sooner. If locking in a lower monthly payment is more important to you, recast. If getting out of debt faster is more important, leave the mortgage alone and your payments will pay off the principle way ahead of schedule.Katehttps://www.blogger.com/profile/18017959421018964001noreply@blogger.comtag:blogger.com,1999:blog-7237633934633144064.post-31305943934478878562010-10-26T13:16:09.874-04:002010-10-26T13:16:09.874-04:00If you are in the first year of a 30 yr mortg. and...If you are in the first year of a 30 yr mortg. and make a LARGE payment towards principal(approx. 70% of loan) should recasting or refinancing be considered or just continue with payments as originally set up? Never sent more than required just have windfall to apply. Thanks for any input.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7237633934633144064.post-57462149367538593022010-08-06T12:49:31.935-04:002010-08-06T12:49:31.935-04:00Thanks for the blog.I am 20 years into a 30 year f...Thanks for the blog.I am 20 years into a 30 year fixed mortgage.I should be on payment 100 of 360 but because I've been making extra principal payments each month I am on payment 199.<br />-----------------------------------<br /><a href="http://www.ukmortgage.net" rel="nofollow">Mortgage Calculators</a>sarahsmithhttps://www.blogger.com/profile/07128049748376591897noreply@blogger.comtag:blogger.com,1999:blog-7237633934633144064.post-66779490359512237692010-06-28T07:47:58.938-04:002010-06-28T07:47:58.938-04:00Madelyn, glad I could help.Madelyn, glad I could help.Katehttps://www.blogger.com/profile/18017959421018964001noreply@blogger.comtag:blogger.com,1999:blog-7237633934633144064.post-8523771068500135772010-06-25T12:55:14.567-04:002010-06-25T12:55:14.567-04:00YOU JUST SAVED ME! I'm planning on retiring i...YOU JUST SAVED ME! I'm planning on retiring in a few years but my biggest worry is my monthly mortgage payment. I never heard of "Recasting" before until yesterday when talking to BofA about a re-fi. The loan officer mentioned doing a recast at the very end of our conversation yesterday. I told him I'd research and make my decision soon. After finding your blog I've made up my mind. I now know I can retire on schedule and do just fine. Thanks from the bottom of my heart.<br />Madelyn<br />Grandmothersontherun.comUnknownhttps://www.blogger.com/profile/06184212336398909167noreply@blogger.comtag:blogger.com,1999:blog-7237633934633144064.post-88688718194665130122010-05-24T07:28:32.056-04:002010-05-24T07:28:32.056-04:00Laura, yes, that's exactly what recasting does...Laura, yes, that's exactly what recasting does - it lowers the percentage of your payment that's going to principle. The main (only?) reason to do a recast is to reduce the monthly payment. It's a tool that makes sense if your cash flow from month to month is reduced.Katehttps://www.blogger.com/profile/18017959421018964001noreply@blogger.comtag:blogger.com,1999:blog-7237633934633144064.post-23434081496883336732010-05-22T10:16:27.339-04:002010-05-22T10:16:27.339-04:00Kate's comment above may answer my question - ...Kate's comment above may answer my question - I was wondering if recasting will disadvantageously change the percentage of my payments going to principal? I am about 1/2 way through a 15-year mortgage, and I have been liking it that for a long time, more of my payments have been going to principal than interest...<br />Anyone know any more about how recasting affects the percentage of subsequent payments going to principle?? ThanksLAhttps://www.blogger.com/profile/00649078701412076847noreply@blogger.comtag:blogger.com,1999:blog-7237633934633144064.post-75587771513091522592010-05-10T09:37:34.718-04:002010-05-10T09:37:34.718-04:00I just stumbled upon this site and I am happy I di...I just stumbled upon this site and I am happy I did.<br /><br />And yes, USAA is the best and they have recently expanded eligibility options; so if you have served honorably and/or have relatives that are USAA members, you are eligible.Unknownhttps://www.blogger.com/profile/02060862534808168304noreply@blogger.comtag:blogger.com,1999:blog-7237633934633144064.post-9967926666642499812010-03-09T11:10:47.993-05:002010-03-09T11:10:47.993-05:00Jeff, the answer isn't clear to me, but I thin...Jeff, the answer isn't clear to me, but I think you had better look at the numbers carefully. One effect of recasting your mortgage is that a smaller proportion of each payment goes to reduce the principle. You'd need to check on your particular case, but you might well be better off just continuing to make extra payments with your standard monthly payment.Katehttps://www.blogger.com/profile/18017959421018964001noreply@blogger.comtag:blogger.com,1999:blog-7237633934633144064.post-45718802046524978192010-03-06T12:38:01.135-05:002010-03-06T12:38:01.135-05:00I am 10 years into a 30 year fixed mortgage. I sh...I am 10 years into a 30 year fixed mortgage. I should be on payment 12o of 360 but because I've been making extra principal payments each month I am on payment 199. I called CCO Mortgage and asked about recasting my mortgage and they were very helpful. Much of the article talks about recasting to lower your payment in case of financial trouble. My plan is to recast and continue my same level of payments...in essence paying down the principal balance even faster. Am I missing something?<br /><br />Jeff in MAAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-7237633934633144064.post-88040810357642345312010-03-06T08:19:55.111-05:002010-03-06T08:19:55.111-05:00AG,
Call the BoA recast dept @ 1.800.405.0077 fro...AG,<br /><br />Call the BoA recast dept @ 1.800.405.0077 from 8a-5p EST M-F. If you have issues call their Customer Service Dept @ 1.800.669.6607. <br /><br />Hope this helps,<br /><br />Jesse Washkaujwashkauhttps://www.blogger.com/profile/13777524156610940922noreply@blogger.comtag:blogger.com,1999:blog-7237633934633144064.post-59735846339662449472010-02-14T17:05:18.679-05:002010-02-14T17:05:18.679-05:00To: Loving Annie
I have a mortgage with BofA, and ...To: Loving Annie<br />I have a mortgage with BofA, and contacted them recently about recasting my principal.<br />The office manager called back saying that he has never heard about recoasting (he has 20 years of experience) and he said that he contacted Customer Service and they did not help him. He ofered me refinancing, which I do not want to do.<br />I have read in many Blogs that people do recasting, but I do not know what to next, who do I need to contact, if my local BofA officer does not help.Ciociahttps://www.blogger.com/profile/18339452460917358389noreply@blogger.comtag:blogger.com,1999:blog-7237633934633144064.post-31804425755346746302009-05-09T10:52:00.000-04:002009-05-09T10:52:00.000-04:00After paying down 100k in principal, I did a recas...After paying down 100k in principal, I did a recast with BofA a year or so ago, and it really helped.<br /><br />They charged me $250 dollars to do it.<br /><br />Banks don't normally tell people about this as an option, which is a shame. <br />Reducing my monthly payments made life much easier.Frequent Travelerhttps://www.blogger.com/profile/15348485045513754985noreply@blogger.comtag:blogger.com,1999:blog-7237633934633144064.post-13110907344981966492008-10-09T09:13:00.000-04:002008-10-09T09:13:00.000-04:00Thanks for the info, Kate. I had USAA for my firs...Thanks for the info, Kate. I had USAA for my first car loan: they even negotiated what I wished to pay from the dealer, they were great! But this is good news too about recasting. We've been here only 4 years but we intentionally bought a cheap house (and fixed it up ourselves with cash) at a great rate on a 20 year term. We have been making 2 mortgage payments a month, and paying something like 1.5x the standard payment per month (again, cheap house, cheap mtg) but we wonder what'd happen if the other shoe really drops in this financial crisis. So...good to know! Thanks!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7237633934633144064.post-6907134865104756182008-10-08T08:02:00.000-04:002008-10-08T08:02:00.000-04:00USAA is the best. It's wonderful to be banking wi...USAA is the best. It's wonderful to be banking with them in these scary times. I have everything consolidated under one dashboard except for a single high-yield ING account.crgilvrhttps://www.blogger.com/profile/10268779770856635694noreply@blogger.com