January 16, 2009

Adjustable Rate Mortgage Payment Recast - What is It? Posted By : Lawrence Roberts

Interest-only and negative amortization payments cannot go on forever. At some point, the loan balance must be paid in full. For all adjustable rate mortgages, there is a mandatory recast after a fixed period of time where the loan reverts to a conventionally amortizing loan to be paid over the remaining portion of a 30 year term.

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