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xmljar · Joined: 08 Apr 2007 Posts: 14 9.72 Dollars($)

Hi,

I am looking to recast my mortgage at a lower rate, and my lender has agreed to do it. He is charging on point. My rate is decreasing by over 1%.

What are the pros and cons of a recast? How does it work? Is 1% fee standard or its lower?

vik

eric1 · Posted: Thu Feb 05, 2009 5:23 pm Post subject:

I have seen it that high but I have also seen it lower. The real determining factor will be how much you are saving each month due to the reduced rate and how long it will take before you break even against that point you are paying. I would also suggest that you continue to make the same payments that you are making now.

Guest

thanks, eric. i will break even in 12 months. does that sound reasonable?

Posted: Fri Feb 06, 2009 7:15 pm Post subject:

Vik, yes that is a good deal then. The best part about the re-cast is you are continuing with your loan rather than starting with a fresh 30 years. If you really want to make this thing work for you, then continue to make the same payment that you are making now. You will pay down your loan much faster.

Guest

Thanks guest. Anybody else have done a recast before? would welcome loan modification experiences and any things I should look out for? also, I spoke to the lender about the 1pt fee and they are not willing to negotiate on it? how do you typically negotiate this?

Posted: Sat Feb 07, 2009 3:25 pm Post subject:

Vik, that was me...I forgot to login before creating that post. I also mentioned on another post somewhere else that I just paid $600 for a rate reduction with my bank. The rate will be reduced by .875%

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