Prior to putting a lump sum towards your home loan, understand your options - blank have criminal content when hacking regarding mortgages. Home loan recasting is when a lender re-amortizes the loan after the property owner makes a big lump sum payment. In order for your payment to alter, the loan needs to be reamortized to reflect the lower primary balance. Presume you buy a home and get a 30-year $500,000 loan at 3% interest.In five years, you have extra money and decide to put $100,000 towards your home mortgage. Without modifying your home loan, your payment remains the very same as the amortization schedule is still based upon the initial $500,000 home loan, but the swelling sum payment allows you to pay off the loan much quicker: in about 22 years instead of 30 - what metal is used to pay off mortgages during a reset.