You'll also keep the initial rate of interest on your home mortgage. Prior to recasting your home loan, remember to seek advice from with your tax preparer or Certified Public Accountant to determine the tax impact. Here's when you must think about modifying your home mortgage. Using this windfall to your home loan helps reduce your regular monthly payments, which enables you to keep more cash in your pocket every month.This could be due to a modification to your earnings, possessions or credit profile that prevents you from receiving a new loan. This can also be the case in an increasing rate of interest environment, where it's difficult to re-finance at a lower rate than your present mortgage. will require you to make an application for a new loan with a various structure, amortization schedule and rate of interest.