Prior to putting a swelling amount towards your home mortgage, understand your alternatives - what is the going rate on 20 year mortgages in kentucky. Home mortgage recasting is when a lender re-amortizes the loan after the property owner makes a large lump amount payment. In order for your payment to change, the loan should be reamortized to show the lower principal balance. Presume you purchase a home and secure a 30-year $500,000 loan at 3% interest.In 5 years, you have additional cash and choose to put $100,000 towards your mortgage. Without modifying your home loan, your payment stays the very same as the amortization schedule is still based upon the original $500,000 home mortgage, but the lump amount payment permits you to settle the loan much faster: in about 22 years instead of 30 - what is a non recourse state for mortgages.