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Friday, January 07, 2011

A Little-Known Strategy for Cutting Mortgage Payments - Mortgages - NYTimes.com

A Little-Known Strategy for Cutting Mortgage Payments - Mortgages - NYTimes.com: "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."

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