Recasting my mortgage

[William Hauptly]

I originally purchased my four plex as an owner occupied building taking advantage of 3.5% down payment.

Since I no longer live in the property and have all the units rented out I have a high roi but I am not happy with my cash flow. I am considering recasting my mortgage to increase my cash flow. Thoughts and opinions?

[Michael Garofalo]

@William Hauptly by definition, recasting a mortgage will never change the interest rate or cost you any money. It's completely different from refinancing, banks usually don't advertise they allow it because it basically allows you to save on interest. If you want more cash flow, but don't want to acquire additional property, I think it's a wise move especially if you have a strategy of eliminating debt. If your goal is to grow as much as possible, then the capital would be better served putting towards a new investment.

I recasted my primary mortgage to maximize my HELOC for future investments, and that has worked out nicely. Everyone has different opinions but recasting is a valuable tool.