Los Angeles Living

A post on this by Harrison Long caught my attention.  It is so interesting I wrote about it on my website also.

If you are thinking about buying a home in Los Angeles or you are already a Los Angeles homeowner, there is a way for you to lower your monthly mortgage payments without going the refinance route. Lowering your monthly mortgage payments can be accomplished by recasting or re-amortizing your loan.

What is recasting your loan?

Recasting your loan means paying down your principal with a lump sum which resets your monthly payments, keeping the original terms and rates. Here is an example from a National Association of Realtors article on the subject:

Here’s one scenario: $230,449 is left on a 30-year fixed rate loan for a $300,000 mortgage taken out at 7.93 percent in 1995. The borrower pays $20,000 toward the principal and asks the lender to reamortize their payments over the remaining 15 years of the loan. The monthly payment then drops by $52, from $2,187 to $2,135 per month. ($100,000 toward the lump sum would save $730 a month.

The good news is that since you are not requesting a new loan there will be no paperwork to fill out, credit checks to endure or closing costs to pay. Los Angeles home buyers, when you are ready, make sure to ask your lender to recast the loan. Paying down the principal itself will just result in the same payments over a shorter term. Recasting the loan will reduce the principal and lower your monthly mortgage payments and interest over the life of the loan. If you are a recent Los Angeles home buyer, and you are about to receive an influx of money, whether it be an inheritance, tax refund, or other, recasting your mortgage might be a good option.

Buying or Selling Los Angeles Real Estate

Buying or selling a Los Angeles home can be a daunting process in a city this size, especially if you're new to L.A. Town. You'll need a resident expert to show you around and help you narrow down the areas where you might like to live. I will help you find the perfect home in the right area to fit your lifestyle, budget and needs! When I list and sell Los Angeles homes for my clients I strive to make the experience a pleasant one. My mission is to provide outstanding service while utilizing the best practices and systems available. If you are an absentee owner, you'll need someone to handle all the details that you can't handle remotely. That's where I come in - I'm there when you can't be. I also specialize in lease property in Los Angeles. Westside Los Angeles Real Estate, including, but not limited to:

• Westwood Real Estate - Westwood single family homes, Westwood condominiums, Wilshire Corridor condominiums, Century City condominiums
• Brentwood Real Estate - Brentwood single family homes, Brentwood condominiums
• Santa Monica Real Estate - Santa Monica single family homes, Santa Monica condominiums
• Beverly Hills Real Estate - Beverly Hills single family homes, Beverly Hills condominiums
• Culver City Real Estate - Culver City single family homes, Culver City condominiums
• Palms/Mar Vista Real Estate - Palms/Mar Vista single family homes, Palms/Mar Vista condominiums
• Silver Lake Real Estate - Silver Lake single family homes, Silver Lake condominiums
• Echo Park Real Estate - Echo Park single family homes, Echo Park condominiums

For more information on how I can best serve your Los Angeles real estate needs, please fill out the online contact form or give me a call at 310-473-6919.

Jane Peters knows L.A. Real Estate. Let me do the Work for You!