Solution · Bring sale proceeds over after buying.
Mortgage Recasting
After a substantial principal payment on an eligible mortgage, the servicer may re-amortize the remaining balance over its remaining term. That can reduce the required principal-and-interest payment.
The useful distinction.
A recast keeps the existing loan; it is not a refinance.
A few things matter.
- The loan and servicer must permit recasting; requirements and fees vary.
- You generally keep the existing rate and remaining term. Taxes, insurance and dues are separate.
- The initial purchase, temporary payments and mortgage-insurance implications must work before the sale.