Recasting Loans (a Bridge Loan Alternative?)

Is it time for you to get a larger home, or
smaller one, but you’re a bit worried about how to juggle the finances of a buy-and-sell
at the same time? I have a special guest today, Aundrea Beach-Greco,
a lender who’s going to share with us about a little-known type of loan called a recast. Stay tuned to the end of the video for your
free gift, this week from Aundrea about secrets in the lending world. Hi. I’m Mary Anglin with United Real Estate Los
Angeles, and by the end of this video, you’ll have the confidence to move ahead in right-sizing
your home. I publish new videos every Thursday, so be
sure to subscribe and hit the bell to be notified when my new videos are released. And now, here’s Aundrea. Today, we’re going to be talking about recasting. Come in on, and let’s get started. Hey, there. Aundrea Beach-Greco here, your local mortgage
expert. Today, we’re going to be talking about how
you can move up or move down into a new home without selling your first home. And now, we found the home of our dreams,
and the topic we’re talking about today is called recasting. Let’s say you want to buy a new home. Your current home hasn’t sold first, and your
intention is to take the proceeds from that home as a down payment on the new home. As I was saying there is a way for you
to be able to buy a new home, whether you’re moving up or down, without selling your other
home first using those proceeds. We call it recasting. Recasting is a way for homeowners to be able
to use the equity in their current home, get a new mortgage without being contingent with
new purchase, and buy that new home. Here’s how it works. Let’s say you have a home worth $400,000,
and you owe $100,000. You have $300,000 of equity in that property
that you want to use on your down payment, but your home hasn’t sold yet. What we do is we qualify you on a new mortgage
with minimum down. You do have to qualify for both mortgages
if you still have a mortgage on your current home. Then once your current home closes escrow,
you take those proceeds, so there, you take your $300,000, and you plop it down on the
mortgage that we just got for you in the new property, and they recast it. Recasting is reamortizing the mortgage. You keep your same interest rate. When your home sells over on the other side,
we take those proceeds for you, apply them to the balance, and it’s reamortized, and
the payment is recalculated, and viola. Now you have new payment, which is what you
wanted all along. It’s just simply contacting the lender and
asking them to recast with the additional funds that you have from the proceeds of your
current sale. This allows you to up buy or buy down in this
hot market without having to be contingent or sell that home first. We hope that was helpful. If you have any questions, just reach out. You can reach me at 702-326-7866. Have an awesome day. I was excited to learn about this type of
loan. It seems like a fantastic alternative to bridge
loans. A few differences that I love are, one, that
it keeps your current rate and terms, and secondly, there’s no need to pay for a new
appraisal or go to through a refinancing process. Let myself or Aundrea know if you’d like more
information. Aundrea’s licensed in California and Nevada,
and her contact information is in the description box below. Let me know in the comments if you’ve ever
done a buy and sell at the same time and how smoothly or rough it went. Now that you’ve learned about recasting loans,
click on the link in the description box to access Aundrea’s free book, 5 Secrets Lenders
Don’t Want You to Know About. If you’re in the San Gabriel Valley or the
Inland Empire and are in need of a realtor, I’m right there in West Covina. Just give me a buzz. If you’re not in my area, no problem. I’m more than happy to refer you to an excellent
realtor where you live. Now, please remember to hit the like button
and to subscribe so that you can get all kinds of great information that I share with you
each week. I’ll see you on the next video.

, , , , , , , , , , , , , , , , , , , , , , , ,

Post navigation

29 thoughts on “Recasting Loans (a Bridge Loan Alternative?)

  1. Thanks for watching "Recasting Loans (a Bridge Loan Alternative?)". This loan has been around for a few years, but is only recently gaining in popularity. Is this the first time you've heard of it? Is it something you can use?

  2. I don't believe I've heard of that term or type of loan, I'm interested to look into it! Perfect for the market we're in! Thanks for sharing!

  3. Very interesting alternative. Loved the extra point of view. Great video!

  4. Buying and selling at the same time can be very stressful. This sounds like a great alternative, Mary & Aundrea. Thank you so much for the information!

  5. This is a great alternative for Seller's who have very specific needs on their purchase on the other side!

  6. Fascinating concept. If I was ever in those circumstances I would have a ton of questions. The good news is that now I would know to ask my lender about it

  7. I’ve heard of recasting when someone comes in to a big chunk of money and want to lower their present payment, and I guess that’s effectively what she is suggesting. I’ll check it out with my local lenders! Thanks for the tip Mary!!

  8. Great topic Mary! We just posted a video about downsizing – this information is helpful for people out there!

Leave a Reply

Your email address will not be published. Required fields are marked *