Yes. A loan recast is when the lender will reamortize the loan with the new (lower) balance. It is typically used when one has paid a lump sum toward the outstanding balance, in turn reducing the remaining monthly payments and interest. When a loan is recast, the same interest rate and term is kept.

# Related Articles

## Can Assets Be Transferred If Payments Are Still Left (Mortgage or Loan)

Yes, one can transfer assets with payments still left. For example, a car will have a Bill of Sale stating the loan amount left. A home will have the Quitclaim Deed showing the amount still remaining for the mortgage.## Can This Remove A Mortgage / Home Loan

Debt Removal Secrets will not work if one still possesses the home. A home is considered a secured debt because an asset can be seized. If the the home is no longer in one's possession, the debt / derogatory mark itself can be removed from the credit ...## We Need Help Lowering Our HELOC Payments Due To Loss / Income / Medical Issue

One can get the HELOC payment down a bit by contacting the lender and asking them to recast the loan by stating, “Can this loan be recast with the remaining principal balance, over a 30 year term, so it drops the minimum payments?”## Can A HELOC Reduce The Monthly Minimum Payments

Yes, it can reduce the monthly minimum payments and as time goes on the monthly minimums will continue to decrease as the principal balance is lowered. In fact, most HELOCs only charge an interest-only payment that is typically much less than a ...## What If One Only Pays The Interest-Only Payments On A HELOC

If one pays only interest then nothing will get paid off, it becomes a treadmill until the amortization table kicks in after the draw period closes.