Recasting vs. Refinancing in Royal Oak– what’s the difference? Since the ultimate goal of recasting or refinancing is to pay less money over the term of the loan, you have to understand both options and determine which is right for you. Recasting means that you are making changes to your existing loan and the payments – not obtaining a new loan. Refinancing means that you’re taking out a new loan so you can pay off your existing mortgage. Why should you choose recasting? Recasting is a simple way to positively impact your current mortgage. The advantages of recasting include: Incurring minimal fees to recast (maybe none at all) Lowering your monthly payments Not having to qualify for a new loan Paying less interest over the term of the loan Why should you choose refinancing? In many cases, refinancing your mortgage may enable you to lower your interest rate and shorten the term of your loan. If you’re leaning towards refinancing, think about how long you’ll continue living in your home as well as how long it’s going to take to recoup the closing costs of the newer loan. You also have a 3rd option – pre-paying your principal earlier instead of going the recasting or refinancing route. You’ll make additional payments along with your existing mortgage payments, thereby paying your mortgage off earlier and saving on the interest at the same time. https://maps.google.com/maps?cid=12393257419259215781