Posted by Collette | Posted in Weekly Tips | Posted on 28-01-2011
Yeah it is Friday. I thought I would add some food for thought. How can you interject fun into the dreary things you do everyday? Now make it happen!
Posted by Collette | Posted in Home Mortgages, Weekly Tips | Posted on 11-01-2011
But don’t want to refinance?
Homeowners looking to lower their monthly mortgage payments and also save some on interest may be able to do so without refinancing.
By using a little-known strategy, called “recasting,” or “re-amortization,” that may be 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 primary appeals of recasting is that it typically involves a small fee ($150) and doesn’t require the credit requirements of refinancing.
Edward Ades, the owner of Universal Mortgage in Brooklyn, says recasting can be especially useful to recent buyers, for whom it makes little financial sense to refinance but who expect to receive a tax refund or other substantial money after closing on their property, like proceeds from a relative’s sale of property, stocks or other assets.
If your interest rate is 5 percent or lower, Mr. Ades added, it may not make sense to recast a loan, because the extra cash could be put into an investment with a higher return. “At the end of the day,” he said, “I always tell people they have to do whatever makes them sleep better.”
To learn more about recasting and if it right for you give me a call. 801-815-5802
