Did you know you can lower your mortgage payment WITHOUT refinancing?

Added: 2026-05-17

[00:00:00]Recasting your mortgage, what is recasting mean? [music] So, recasting your mortgage is a way to lower your monthly mortgage payment. What happens is if you have some money on the side that you want to pay the principal balance down, you're call the lender say, "Hey lender, I want to recast my mortgage. I want to principal balance down by 50,000 per se." And then what happens is they'll use the same interest rate and lower your monthly mortgage payment by the principal reduction.

[00:00:21][music] And it's a one-time cost up to $500 depending on the lender, so it's cheaper than refinancing, but it's a great way to lower your monthly payment if you have extra money to pay the principal balance down. Perfect scenario is somebody that bought a house using 5% down payment and then they're in the process of selling their house. Once they sell their house, they have a huge net proceeds, they can call into the lender say, "Hey lender, I want to recast my mortgage. I want to pay 100 grand down on my principal balance." And they'll use the same interest rate to lower that monthly payment. And again, it's a one-time cost, lower cheaper than refinancing. So, [music] if you have the opportunity use that option cuz it's a great way to do that. For more questions, advice, tips, feel free to comment below.