You'll likewise keep the original rate of interest on your home loan. Before recasting your home mortgage, keep in mind to speak with your tax preparer or CPA to identify the tax effect. Here's when you need to consider recasting your home mortgage. Applying this windfall to your home mortgage helps decrease your regular monthly payments, which enables you to keep more cash in your pocket monthly.This could be due to a modification to your income, properties or credit profile that prevents you from receiving a new loan. This can also hold true in an increasing rates of interest environment, where it's difficult to re-finance at a lower rate than your present home mortgage. will need you to apply for a brand-new loan with a different structure, amortization schedule and rates of interest.