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[quote=Anonymous][quote=Anonymous]We are mid 30s and we chose to invest the significant proceeds of our first home sale into our brokerage versus recasting our new, larger mortgage.  However in your case I would probably lean towards a recast and continue to make the same payments to pay it down faster.  Approaching retirement is a game changer.[/quote]
If you continue to make the same payments, then you don't need to recast.

Recasting a mortgage means reamortizing it, which restores your original maturity and lowers your mandatory monthly payments after you have prepaid some principal.
Normally, when you prepay principal, you're required to make the same monthly payments but the maturity date moves up (you will have paid the mortgage off sooner.)

With or without a recast, a prepayment should be considered an illiquid investment with a ROI equal to the mortgage's interest rate over the remaining life of the mortgage.

Read: [url=https://www.mtgprofessor.com/A%20-%20Amortization/voluntary_mortgage_recasts.html]here[/url] for more info.

A voluntary payment decrease increases the length of the loan - so "lowering payments" and "ending payments" are two mutually conflicting goals. For the former, you recast. For the latter, you don't and keep your high monthly obligations.  From an investment point of view, recasting would allow you to direct the difference between your current and the future payment either towards day-to-day expenses or to invest it; you're essentially getting a mortgage-interest loan for the amount your payment is lowered by.

Personally, unless your current mortgage payments have become too burdensome I would not recast.  It's commonly a thing for people who due to life changes can't make their payment anymore but who have previously aggressively payed their mortgage down.  Recasting for financial gain seems essentially gambling.[/quote]

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