You'll also keep the initial rate of interest on your home mortgage. Before recasting your home loan, keep in mind to talk to your tax preparer or CPA to figure out the tax impact. Here's when you must think about recasting your home loan. Using this windfall to your home loan helps lower your monthly payments, which permits you to keep more money in your pocket each month.This could be due to a change to your income, properties or credit profile that prevents you from qualifying for a new loan. This can likewise be the case in an increasing interest rate environment, where it's impossible to re-finance at a lower rate than your present home loan. will need you to look for a new loan with a different structure, amortization schedule and interest rate.