Finance
In Tennessee, 'recasting' a mortgage loan means the lender:
ARefinances the loan at a lower rate
BRecalculates monthly payments based on the current balance and remaining term after a large principal payment✓ Correct
CExtends the loan term without changing the rate
DConverts the loan from ARM to fixed
Explanation
Loan recasting allows a borrower who has made a large extra principal payment to have the remaining monthly payments recalculated based on the new lower balance and remaining term, resulting in lower monthly payments.
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