You'll also keep the initial rate of interest on your home loan. Before modifying your home loan, remember to talk to your tax preparer or CPA to identify the tax effect. Here's when you ought to consider recasting your home mortgage. Using this windfall to your home loan assists reduce your regular monthly payments, which allows you to keep more cash in your pocket each month.This could be due to a modification to your earnings, properties or credit profile that prevents you from receiving a brand-new loan. This can also be the case in a rising rate of interest environment, where it's difficult to re-finance at a lower rate than your existing home mortgage. will need you to get a new loan with a various structure, amortization schedule and rates of interest.