Quote:
Originally Posted by cinder465
"A couple of years ago, in order for us to live on just my income, I sold some investments and made a big principal payment and re-cast the mortgage. This is a little known way to save big without refinancing- it simply lowers your payment by re-amortizing the loan over the remaining term, at the same rate."
We have $100K and were planning on refinancing to bring down our principal blance, therefore our payment. Should we do what you did instead?
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If you already have a competitive interest rate, and you don't want to change the time remaining on the loan, I would say yes. Recasting the loan cost me $250, and took 4-6 weeks. The trick is to find the right person at the loan servicer/bank that handles it. Re-financing can cost several thousand, income & credit verification, an appraisal, etc.