You'll likewise keep the original interest rate on your home mortgage. Before recasting your home loan, remember to speak with your tax preparer or Certified Public Accountant to identify the tax effect. Here's when you should consider modifying your home loan. Using this windfall to your home mortgage helps lower your regular monthly payments, which enables you to keep more money in your pocket every month.This might be due to a modification to your earnings, properties or credit profile that avoids you from certifying for a new loan. This can also hold true in a rising rate of interest environment, where it's impossible to refinance at a lower rate than your present home mortgage. will require you to make an application for a new loan with a different structure, amortization schedule and rates of interest.