If you’re planning to buy a new home before selling your current one, recasting might be worth considering. Most homeowners don’t even know it’s an option—but when used correctly, it can offer serious financial flexibility.
Why Recasting Might Be a Mortgage Advantage Worth Considering
- Re-amortizes your loan – Your monthly payment is recalculated based on the lower loan balance.
- Bridge solution – Allows you to buy first and sell later, then “recast” to the payment you would’ve had with a 20% down payment.
- One-time opportunity – Most lenders allow a recast only once per loan, but when timed right, it’s powerful.
- Eliminates mortgage insurance – Once your new payment reflects 20% equity, PMI can be removed.
- Low-cost, high-impact – Typically costs just $150–$250 to recast, and the benefit can be long-term.
If you want to explore whether recasting could help you structure your next purchase more strategically, I’d love to walk you through it.
Get Pre-approved = Link to my Loan Application
Best,
Sal Trapani
Owner & Mortgage Broker
MJ Mortgage LLC
281-608-2846
sal@mjmortgagellc.com
www.mjmortgagellc.com
NMLS 1055510 | NMLS 2381195