Finance
What is 'recasting' a mortgage, and how might it benefit Oregon homeowners?
ARefinancing to a new loan with different terms
BRe-amortizing an existing loan after making a large principal payment, reducing the monthly payment while keeping the same interest rate and remaining term✓ Correct
CConverting a fixed-rate to an adjustable-rate mortgage
DRequesting the lender cancel PMI
Explanation
Recasting (re-amortization) allows a borrower to make a large lump-sum principal payment and then have the lender recalculate the monthly payment based on the new, lower balance — keeping the same rate and remaining term. This differs from refinancing (which involves new closing costs and a new loan). Oregon homeowners who receive windfalls (inheritances, bonuses) can recast to lower their monthly payments.
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