SCHEDULED RECAST

Scheduled Recast is rechecking the computation of the remaining schedule of a mortgage set to be done at a date agreed upon and known prior. Mortgages have scheduled recast as part of their program due to the option in mortgages where it can be paid in advance which aren’t fully amortized. Thus, at the date of the scheduled recast, another amortization schedule will be computed based on the remaining term and principal balance at the moment of schedule recast. This guarantees the payment of the mortgage by the original term’s end. This also typically means an increase in the remaining scheduled payments.