Most people would be thrilled if they could lower their monthly mortgage payments. There is another option that the banks do not readily tell borrowers about. It's called "recasting." If you have some money saved up and would like to reduce your monthly payment, talk to your lender directly to see if you qualify for recasting. The borrower puts money down toward the principal under this strategy and the payments can be lowered. The good news is you do not have to apply for a new loan or pay other fees that usually go along with refinancing. The bad news is the interest rates stay the same, as does the number of payments. After being approved for recasting, you can either relax and enjoy the extra money each month or you can keep paying the same amount, thus saving money on interest payments and possibly paying off the mortgage faster. It may be the extra cushion one needs to be prepared for what the future might bring.

Blog inspired by article written by M.P. McQueen featured in The Wall Street Journal and can be seen here: http://online.wsj.com/article/SB10001424052748704791004575520313350677180.html?mod=WSJ_RealEstate_LeftTopNews