Are there any experiences with mortgage recasting? I understand it can lower monthly payments, but I'm curious about potential drawbacks. Loan balance amount is $1.6 million with a current monthly payment of $8k Location: Seattle. #mortgage #housing
What are you trying to accomplish? What is your interest rate?
Interest rate is 2.6. Trying to reduce monthly payment and pay separately towards principal.
Your interest rate seems to be pretty good at 8K for 1.6M outstanding principal
Yeah. It’s 2.6
If I were you I wouldn’t recast with that rate. Invest the savings elsewhere instead of reducing the principal.
Recasting can make sense if your current rate is comparable with today’s market rate. If your rate is way lower than todays rates , as in your case, then you’re probably better off invest in elsewhere. Even high-yield savings account or treasury bonds are better and will keep your money more liquid
Why not earn 5% from high yield savings account? Instead of recasting
At 2.6, not worth it unless you're in need of the savings.
No harm, gift yourself with peace of mind