Prior to putting a swelling sum towards your mortgage, understand your alternatives - what happened to cashcall mortgage's no closing cost mortgages. Home loan recasting is when a loan provider re-amortizes the loan after the house owner makes a big swelling sum payment. In order for your payment to alter, the loan should be reamortized to show the lower principal balance. Assume you buy a house and secure a 30-year $500,000 loan at 3% interest.In 5 years, you have additional money and decide to put $100,000 towards your mortgage. Without modifying your home mortgage, your payment stays the exact same as the amortization schedule is still based on the original $500,000 home loan, but the swelling sum payment permits you to pay off the loan much faster: in about 22 years instead of 30 - how to reverse mortgages work if your house burns.