Finance
In Hawaii, what is 'recasting' a mortgage?
AA. Refinancing a mortgage with a different lender
BB. Recomputing monthly payments on the remaining balance after a large principal payment, reducing future monthly payments✓ Correct
CC. Converting an interest-only loan to a fully amortizing loan
DD. Adjusting the interest rate on an ARM after the initial period
Explanation
Recasting (or re-amortization) recalculates the monthly payment based on the current lower balance after a large principal payment, reducing the monthly payment while maintaining the original loan term.
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