If you bought a home during a high-interest rate environment, it’s wise to prepare for either a mortgage refinance or a recast. Interest rates have been gradually coming down since their highs of 2022, and I suspect millions of existing homeowners will eventually be able to reduce their monthly mortgage payments.

After writing my post on not being in a rush to pay off my adjustable-rate mortgage before it resets, I realized the period after the reset is similar to a recast without having to pay any fees or do any paperwork. As a result, I wanted to explain what a mortgage recast is and why an ARM continues to be my preferred mortgage product.

Since 2003, I’ve been refinancing my mortgages whenever interest rates have dropped. However, with mortgage rates staying stubbornly high and more people facing higher rates, the practice of recasting mortgages is likely to become

Keep reading this article on Financial Samurai.

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