I've recasted two loans and yes, I also apply additional to the principle every month.

We applied for a refi with Chase; they responded by offering to lower interest rate from 3.75 to 3.125% with the same term, no closing costs, no appraisal. We accepted.

Since they recast the loan that tells me they have not sold it. Like to FNMA etc. And that means it’s on their balance sheet. That means they can be flexible in also modifying and reducing the rate more easily without the expense of a full blown refinance. Also by recasting you have not shortened the original term. Just freed up monthly cashflow, Assuming you don’t Continue to make payments at the original payment amount

Good point EL Toro. You are correct. They told us they would not sell the loan.

If you run the numbers you will save more if you make the principle reduction without recasting if you continue to make the current mortgage payment AND THE BANK CREDITS YOUR PAYMENT AGAINST THE CURRENT PRINCIPLE.

If it is a portfolio loan (it is, because they said so) you need to read the loan docs to know how the extra principle payments are applied.

The longer the note has to run, the more money you save by not recasting.

Either way you save money. Recasting is best for people to reduce their monthly payment.

I am not a lawyer and this is not legal advice.

From the previous page:

https://www.investopedia.com/t...m/mortgagerecast.asp

From what I've experienced, if you finance with a company that will recast it, that feature follows it if they sell it. Did with both of mine.