You have a lump sum of cash, or interest rates have dropped. What do you do with your mortgage? Refinancing costs thousands in closing fees but lowers your rate. Recasting costs a few hundred dollars and lowers your monthly payment without changing your rate. Extra payments cost nothing but don't lower your monthly obligation. This quiz tests your ability to choose the right tool for the job.
Important
What is a Mortgage Recast?
A recast is when you make a large lump-sum payment toward your principal, and the lender recalculates your monthly payment based on the new, lower balance, keeping the original interest rate and term.
The Scenarios
Read the 11 scenarios below and select the best strategy for each homeowner.