Recast

For homeowners looking to reduce their monthly mortgage payments without refinancing, a mortgage recast could be the ideal solution. North Star Mortgage Network is here to guide you through the recast process, helping you maximize savings while maintaining your existing loan terms. Below, we break down the key aspects of mortgage recasting, including eligibility, requirements, and the step-by-step process.

What is a Mortgage Recast?

A mortgage recast allows homeowners to make a lump sum payment toward the unpaid principal balance of their loan. This reduces the monthly payment while keeping the original loan term and interest rate intact. Unlike refinancing, a recast does not require a new loan application, appraisal, or closing costs, making it a cost-effective way to adjust your mortgage payments.

Eligibility for Mortgage Recast

Not all loans qualify for a mortgage recast. The following loan products are NOT eligible:

Federal Housing Administration (FHA) Loans
Veterans Affairs (VA) Loans
Government National Mortgage Association (GNMA) Loans
Bond Loans
Jumbo Loans

Mortgage Recast Requirements

To be eligible for a mortgage recast, homeowners must meet the following requirements:

A minimum lump sum payment of $5,000 toward the principal balance is required.
The loan must be current (no past due payments).
A $250 recast fee applies (subject to state guidelines) and must be paid upfront.
The recast cannot commence within 60 days of loan origination.
The recast must be requested within 60 days of making the principal reduction.
Only one recast is allowed per 12-month period.
A signed recast agreement from the homeowner is required.

Step-by-Step Mortgage Recast Process

Contact North Star Mortgage Network’s Customer Service to request a mortgage recast.
Loan eligibility review – Once confirmed, a Recast Letter outlining the process and a Recast Authorization Form will be sent to you.
Make the principal reduction payment (minimum $5,000) via one of the following methods:
- Bank wire transfer
- Check
- Through Newrez’s website (specific instructions provided upon request)
Pay the recast fee of $250 upfront (subject to state guidelines).
Sign and submit the recast agreement to finalize the process.

Benefits of a Mortgage Recast

Lower monthly mortgage payments
No need to refinance, avoiding new loan terms and closing costs
Preserve your existing low interest rate
Faster loan payoff with reduced interest costs over time

Get Expert Guidance on Your Mortgage Recast

At North Star Mortgage Network, we are committed to helping homeowners find the best financial solutions for their needs. If you are considering a mortgage recast and want expert guidance, reach out to our team today.