Mortgage Recasting is an option for homeowners to lower their monthly mortgage payments after the loan has closed. Mortgage Recasting applies only to Conventional Loans.
Borrowers may make a large lump sum payment toward the principal of their conventional loan to secure lower monthly payments for the duration of the loan. All other loan terms including the interest rate of the original loan will remain the same.
You Might Want To Apply If …
♦ You received a large lump sum from the equity of the delayed sale of your prior home that occurs after the closing on the mortgage you are paying down.
♦ You receive a large inheritance and would like to apply those monies to lower your monthly payments.
♦ You would like lower monthly payments without the risk of refinancing which requires re-applying for a mortgage and incurring all the associated closing costs.
Benefits of Mortgage Recasting …
♦ Re-amortize your current loan after paying a lump sum toward the principle for a lower cost than refinancing.
♦ Lower your monthly payments while increasing the equity in your home.
♦ Retain the low interest rate of your current loan.
♦ Avoid closing costs and appraisal fees of a new loan.
♦ Avoid having to re-qualify for a new loan.
Reach out to Rick Cignoli @ 860.945.9284 to see if Mortgage Recasting is the right mortgage option for your family.
Changes in FNMA Guidelines Enables Norcom Mortgage to Close More Conventional Loans
Here’s What’s New …
1. Unreimbursed Business Expenses. Buyers earning <25% of their income from commission, bonus or overtime no longer have to account for a reduction in income due to unreimbursed employee expenses. That means tradesmen in particular may use their total gross income to qualify for a mortgage and not be penalized for taking advantage of legitimate business deductions.
2. Move Up Buyers. Buyers moving up to a bigger home and converting their current residence to investment property no longer need a minimum 30% equity position in the vacated property in order to use the rental income from the vacated property for debt service on the new home. All rental income from the former residence can now be used immediately.
3. Cash Reserves. Buyers using stocks, bonds, mutual funds and retirement accounts now can use 100% of their vested balances toward the asset reserve requirement. If those balances are >20% of the funds needed for the down payment and closing costs, buyers no longer need to show proof of liquidation for those funds. Less paperwork means faster closings.
Contact Me Today to Learn More! At Norcom, We Make Homes Happen!
Move right in to this 3 BR Colonial in sought after Mt. Fair Farm subdivision and let’s be neighbors.
I live down the street and around the corner from this great home and would be happy to welcome you to the neighborhood.
Call Me at 860.945.9284 to discuss your mortgage options and to take advantage of my FREE Mortgage Pre-Approval service. Then call my friend Sherry Cosmos at Westview Properties to schedule a showing and be ready to make an offer.