The New York Times recently ran an interesting story on the concept of "recasting" as a means of lowering mortgage payments. From the article:
"A little-known strategy, called "recasting," or "re-amortization," is available through some mortgage lenders and servicers. It involves paying off a lump sum of the principal amount and asking to have the monthly payments reset according to the original interest rate and loan terms. The lump sum reduces the principal, so your new monthly payments decrease slightly and you save on interest paid over the life of the loan."
One of the biggest appeals of recasting is that it typically involves no (or a small) fee and doesn't include the credit requirements of refinancing. To learn the details of recasting read the full article click here. [where: 75230]