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: Mortgage Lender Implode-o-Meter

Recasting Jumbos: An Alternative to Refinancing

By Implode-Explode Heavy Industries

``?One model would be where the bank agrees to write down negative equity, with a recasting of the loan to make it more affordable?? Recasting, also known as re-amortizing, allows borrowers to pay down the principal on their loan, which would reduce monthly payments, without qualifying or paying high closing fees... Neither of these banks advertises recasting mortgage loans because the profit margin is negligible in comparison to refinancing mortgage loans. J.P. Morgan Chase reports less than 200 of 10 million home mortgages a month are recast. Bank of America provides a similar low rate, reporting about 200 to 300 of 14 million mortgages a month are recast.''

Full post as published by Mortgage Lender Implode-o-Meter on October 08, 2010 (boomark / email).