Lower Your Mortgage Payment with a Recast
Looking for a way to reduce your monthly mortgage payment without refinancing? A mortgage recast could be the perfect solution! With a lump-sum payment toward your principal, you can lower your monthly payment while keeping your low interest rate and loan terms intact.
What is a Mortgage Loan Recast?
A mortgage loan recast is when you pay a substantial amount of principal on your loan to reduce the balance and monthly payment.
How Does a Mortgage Recast Work?
- If approved, you make a substantial (minimum of $10,000) lump sum payment to reduce the loan balance
- We then recalculate the monthly payment based on the lower principal balance, using the same interest rate and time remaining under the original mortgage term (maturity date)
- As a result, you receive a lower monthly payment
Why Consider a Mortgage Recast?
✅ Lower Monthly Payments
Reduce your financial burden while staying on track with your loan.
✅ No Need to Refinance
Keep your current low interest rate and avoid the hassle of a new loan application.
✅ Save on Interest Over Time
Paying down your principal lowers the total interest paid over the life of your loan.
✅ Simple and Cost-Effective
A recast typically involves a low administrative fee and minimal paperwork.
Is There a Fee?
Currently, FAFCU charges a fee of $250.00 to process a Mortgage Loan Recast
How do I Qualify?
- Your loan must be a conventional mortgage held by First Atlantic FCU.
- Your monthly mortgage payments must be current, with no outstanding amounts due.
- We require a copy of the Recorded Mortgage on file. To expedite the process, please include a copy with your application.
- Your recast request must be submitted at least 90 days after your mortgage closing date.
- If your loan has an Adjustable Rate, your request must be made at least 90 days before any scheduled payment changes.
- You must have a lump sum principal payment of $10,000 or more available within 30 days. Do not begin the recast process unless your payment will be available within this timeframe. Proof of funds must be submitted with your application.
Getting Started and Next Steps
1. Submit Your Application
Complete, sign, and submit the Mortgage Loan Recast Application for review.
Please Note: All original signers of the original Note must sign this application.
3. Finalize the Agreement
You must sign, notarize, and return the Mortgage Loan Recast Agreement, along with your lump sum payment. The payment must be in certified funds or already on deposit with FAFCU.
2. Eligibility Determination
We will assess your application to determine if you qualify.
If denied – You will receive a letter explaining the reason for denial.
If approved – You will receive a Mortgage Loan Recast Agreement within 15 days, which will include your new monthly mortgage payment amount.
4. Lower Monthly Payments Begin
Start paying your new mortgage amount on the effective date specified in your agreement—no more than 45 days from the agreement date.
Is a Recast Right for You?
A mortgage recast is ideal if:
- You recently received a bonus, inheritance, or other lump sum and want to apply it toward your home loan.
- You want to lower your monthly mortgage payment but don’t want to refinance.
- You plan to stay in your home long-term and want to reduce your financial stress.
Get Started Today!
Take control of your mortgage and enjoy lower payments with a simple recast. Apply today to see if you qualify and start saving!