Finance
Recasting a mortgage means the lender:
ARefinances the loan at a lower rate
BRecalculates the monthly payment based on a new principal balance after a lump-sum paydown✓ Correct
CChanges the loan from adjustable to fixed
DExtends the loan term
Explanation
Mortgage recasting allows a borrower who makes a large lump-sum payment toward principal to have their monthly payment recalculated (reduced) based on the new lower balance, while keeping the same interest rate and remaining term.
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