Mortgage recast
Mortgage recast
A mortgage recast is a permanent alteration of a mortgage's payoff structure. Some mortgage loans allow for recasting under certain situations, such as when the borrower is financially distressed. In this case, the maturity could be extended, or the interest rate could be reduced. Mortgages that allow unpaid interest to be added into the principal balance (e.g., option ARMs), have to be recast so that the debt is eventually repaid.
6.05
5.78
