You'll likewise keep the initial interest rate on your home loan. Prior to recasting your mortgage, keep in mind to speak with your tax preparer or CPA to identify the tax impact. Here's when you should think about modifying your home mortgage. Applying this windfall to your home loan assists reduce your regular monthly payments, which allows you to keep more money in your pocket every month.This might be due to a change to your earnings, assets or credit profile that prevents you from qualifying for a brand-new loan. This can also hold true in an increasing rate of interest environment, where it's impossible to re-finance at a lower rate than your existing mortgage. will need you to obtain a brand-new loan with a various structure, amortization schedule and rate of interest.