What is a one-time payment recast and how can it make you more competitive as a buyer? That’s what we’re going to explain today.
Currently, we’re in somewhat of a seller’s market, but we’re seeing things shift towards a buyer’s market. Still, sellers aren’t a big fan of contingencies in their contracts aside from the typical appraisal and finance contingencies. With so many offers, they’ll simply pick another one.
If you are a homebuyer and do find yourself in a multiple offer situation, we may have the perfect solution for you. It’s called a one-time payment recast and it allows you to make a lump sum principal payment and re-amortize the loan after the closing of your home sale.
Let’s say you have a home to sell and you want to buy a new house, but you don’t technically need to sell first to be able to buy your new house. If you qualify with both payments and close with both homes, you could then make a lump sum payment of at least $32,000 and we can recast the loan and adjust the payment. This would allow you to be a buyer without any contingencies and could allow you to win in a multiple offer situation.
If you have any questions about this topic or about anything else, don’t hesitate to give us a call or send us an email. We look forward to hearing from you soon.