New Money New Problems Podcast
New Money New Problems Podcast
The #1 Question Before Making A Home Down Payment
Use Left/Right to seek, Home/End to jump to start or end. Hold shift to jump forward or backward.
Mortgage Recasting 101
In this episode, we discuss the most important question one can ask when determining their home down payment: “Can this mortgage be recast?” Using a $500,000 home example, Brenton explains amortization schedules and how recasting works: after a lump-sum principal payment, the lender recalculates the payment to keep the original payoff timeline while lowering monthly payments. We cover scenarios where recasting makes sense, questions to consider, and the opportunity costs of giving up large sums for a 20% down payment.
00:00 Down Payment Dilemma
01:05 Home Buying Season
01:59 Why Smaller Down
04:49 Ask About Recasting
05:04 Amortization Basics
09:20 Recast Example Numbers
11:13 Break And Promo
12:23 PMI And Affordability
15:14 Investing Opportunity Cost
17:51 Final Takeaways