You'll also keep the original interest rate on your mortgage. Before recasting your mortgage, remember to seek advice from your tax preparer or CPA to figure out the tax effect. Here's when you should think about modifying your home loan. Applying this windfall to your mortgage assists reduce your month-to-month payments, which enables you to keep more money in your pocket each month.This could be due to a change to your income, possessions or credit profile that prevents you from certifying for a new loan. This can likewise hold true in an increasing rates of interest environment, where it's difficult to refinance at a lower rate than your existing home mortgage. will require you to look for a new loan with a various structure, amortization schedule and rates of interest.