You'll also keep the initial rate of interest on your home mortgage. Before recasting your mortgage, keep in mind to speak with your tax preparer or CPA to figure out the tax effect. Here's when you must consider recasting your home loan. Applying this windfall to your home mortgage helps decrease your monthly payments, which enables you to keep more cash in your pocket every month.This could be due to a modification to your earnings, properties or credit profile that avoids you from getting approved for a brand-new loan. This can likewise hold true in a rising interest rate environment, where it's difficult to re-finance at a lower rate than your current home mortgage. will need you to use for a brand-new loan with a various structure, amortization schedule and rate of interest.