Mortgage recasting, also known as re-amortization, is a process that allows homeowners to lower their monthly mortgage payments by applying a lump sum toward their principal balance.

You have used home equity lines of credit to purchase investment rentals and want to know the best way to pay down the HELOCs.Between the two properties you bought, after expenses, you have $250 a month positive cashflow to use.What I like to do is pay down some principal every month with my positive cashflow.I use my extra active income from real estate commissions helping other investors to pay down the principal even more which just frees up that credit for me to use again.I know I can refinance the HELOC debt before it changes to principal and interest as it is just interest only payments as yours are.One difference is the cashflow, I have greater positive cashflow and could make the principal and interest payment in the future with the extra cashflow I already enjoy.I always get HELOCs on my income properties as well after purchasing them to pull out as much of my downpayment as possible.

Pay Down the Loan Faster:I’m considering applying $40,000 annually to the loan principal.

I pay down the HELOC each month and would end up paying about $2,200 in interest over 13 months + the $50k principal.

Principal Paydown:  Cash Flow:  Tax Benefits: Savings from depreciation and interest deductions.For a deal to make sense, at least three of these components—home appreciation, cash flow, and principal paydown—need to be strong.

I dont like any company personally that does not put their principals on their website as in meet the team.. ... 

My role does not require any underwritting to deal presentation to the principals.

Paying extra to your principal..right.  

. $6k principal pay down (based on your current loan). $20k appreciation (based on 3% which is conservative, 4-5% is the historical average).

They have always returned principal when requested in the past, as well.