You'll also keep the original rates of interest on your mortgage. Before recasting your home loan, remember to speak with your tax preparer or CPA to figure out the tax effect. Here's when you should think about recasting your home mortgage. Applying this windfall to your mortgage helps decrease your month-to-month payments, which allows you to keep more money in your pocket each month.This might be due to a change to your earnings, properties or credit profile that prevents you from qualifying for a new loan. This can likewise be the case in a rising rates of interest environment, where it's impossible to refinance at a lower rate than your present mortgage. will require you to apply for a new loan with a various structure, amortization schedule and rate of interest.