Refinancing Alternative Lowers Monthly Payments
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a mortgage at today's remarkably low rates is an excellent financial move, but it isn't always easy to do or affordable. Now another, little-known option is emerging, known as recasting
, or re-amortizing. Rather than applying for a new loan, recasting allows borrowers to negotiate a new, lower payment with lenders by applying additional funds to their existing loan balance. Lenders don't advertise this option because it likely earns them lower profits than refinancing
. Recasting is best suited for borrowers who have extra cash, though some financial advisers warn borrowers about tying up too much of their savings in a loan.
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