Prior to putting a lump amount towards your home loan, understand your choices - hawaii reverse mortgages when the owner dies. Home loan recasting is when a lender re-amortizes the loan after the homeowner makes a large swelling sum payment. In order for your payment to alter, the loan must be reamortized to reflect the lower principal balance. Presume you purchase a home and secure a 30-year $500,000 loan at 3% interest.In five years, you have additional cash and choose to put $100,000 towards your home loan. Without modifying your home mortgage, your payment remains the same as the amortization schedule is still based on the original $500,000 home mortgage, but the swelling amount payment permits you to settle the loan much quicker: in about 22 years instead of 30 - what do i need to know about mortgages and rates.