Before putting a lump sum towards your home mortgage, understand your choices - how common are principal only additional payments mortgages. Home mortgage recasting is when a loan provider re-amortizes the loan after the property owner makes a big swelling sum payment. In order for your payment to alter, the loan must be reamortized to show the lower principal balance. Presume you buy a home and take out a 30-year $500,000 loan at 3% interest.In 5 years, you have additional money and choose to put $100,000 towards your home mortgage. Without modifying your home mortgage, your payment remains the like the amortization schedule is still based upon the initial $500,000 home mortgage, however the swelling sum payment allows you to settle the loan much quicker: in about 22 years instead of 30 - how does bank know you have mutiple fha mortgages.