Reply to Mortgage recast vs extra payments

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[quote=Anonymous][quote=Anonymous]By “recast”, I’m referring to a lump sum payment that pays down principal but keeps term same so you have a lower payment but same term.

As defined here:

https://www.rocketmortgage.com/learn/recast-mortgage

A mortgage recast is when you make a lump-sum payment toward the principal balance of your loan. Your lender will then reamortize your mortgage with the new (lower) balance. Your interest rate and term remain the same, but you can lower your monthly payments because your principal went down.
Most commonly, homeowners recast a mortgage when they’ve purchased a new home but haven’t sold their old one. Once the previous property has been sold, then the homeowner can use the proceeds of the sale toward a recast of their new mortgage.
A recast is also an option for those who receive a large amount of money and desire to lower their mortgage expenses. For example, a homeowner receives an inheritance or a large bonus from work.

[/quote]

I was going with Jack Guttentag's definition here which does not tie the down/prepayment to the transaction of recasting:
https://www.mtgprofessor.com/A%20-%20Amortization/voluntary_mortgage_recasts.html

I have found him in the past a very reliable source.[/quote]

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