MINT HILL, NC – As we all know this market has been a whirlwind, especially in Mint Hill! Home values have increased significantly over the past few years, in our community, and nationwide. Therefore, many people have a significant amount of equity in their homes, in which they can use towards a new home. The issue is that when looking to sell/move it can be a little difficult to line up a sale of the current home with the purchase of the new home, and having the money readily available to use as a down payment towards the new home. Well, there is a solution! It is called “recasting” the loan.
Recasting a loan is the process of doing a lump sum principal reduction AFTER closing, in which the mortgage company/servicer agree to re-adjust your monthly payment based on the new principal balance, not the balance when the loan originally closed. This gives the clients the ability to buy a new home, financing up to 95% of the value and then take advantage of the lower payment after they sell their current home (and pay down the loan).
It also gives the client the ability to not hastily sell, and ensure they are taking all proper steps to sell for the maximum amount. Once the home is sold, they can then complete a recast settling into their dream home with the dream payment!
If you are to have any questions on anything related to mortgages, feel free to reach out to me (704) 430-6138, email@example.com at any time!