Should I Recast My Loan If I Am Doing Velocity Banking? | Recast Mortgage Or Use Velocity Banking?

In this video, I will be discussing if you should recast your mortgage or use velocity banking. Also if you should recast your mortgage if you are doing velocity banking.

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▶️▶️ DISCLAIMER ◀️◀️

Mike Adams is not a licensed mortgage broker, not a real estate agent, not a Certified Financial Planner, not a licensed attorney, and not a Certified Public Accountant. Viewers will consult with their professionals prior to engaging in any financial strategies. Also, this video and description may contain affiliate links, which means that if you click on one of the product links, I’ll receive a small commission at no cost to you. This helps support the channel and allows us to continue to make videos like this.

Thank you for your support!

#velocitybanking
#refinanceorrecast
#shouldirecastmymortgage


Translated titles:
अगर मुझे वेलोसिटी बैंकिंग करना है तो क

¿Debo reembolsar mi préstamo si estoy haciendo banca rápida? El | ¿Relanzar la hipoteca o usar V

Sollte ich mein Darlehen neu fassen, wenn ich Velocity Banking mache? | Hypothek neu fassen oder Vel

Dois-je refondre mon prêt si je fais des opérations bancaires à grande vitesse? | Refonte de l'hy

Devo reformular meu empréstimo, se estiver fazendo o Velocity Banking? | Reforma da hipoteca ou use

[AlfredoMartineztx]

How I see it, if your going to recast for lower monthly payments do it in the beginning for the safety net of extra (CF) and reduce some interest of the mortgage and dropping off the PMI charge.
But once you get to a comfortable monthly payment, do the velocity banking ONLY from that point on to reduce the years of interest on the mortgage from there on.

Unless you started with a mortage payment you liked from the beginning of the 30yr/15yr loan velocity banking ALL THE WAY.

[dienekes]

This is awesome, Mike. I'd never heard of recasting before this. It's a good thing to know about. The only reason I can think of for someone recasting is maybe a couple who have been doing velocity banking, paid down their mortgage quite a bit, and one of them lost their job and, maybe wanted to go to school for a couple of years to get a better job or something, so the household income gets severely cut for a relatively short period of time (1 - 4 years).

[susanalexander]

I am refinancing from a 30 yr to a 15 year mortgage and plan to also try velocity banking. Recasting could give me a safety net just in case things with work or business go south and I fear that I may not be able to continue the larger payments or the velocity banking. It would allow me to have a lower payment and better cash flow without refinancing again or forbearance or deferment.

[SantiagoLopezgalicia]

I didn’t know there was that option. I thought refinancing was the only way to lower your monthly payment. Thanks Mike. I appreciate your information.

[Smiles]

Could you recast and keep paying the same monthly payments as before and/or use the extra cash flow to help you chunk payments quicker?

[Modeling]

I think re-casting while VB this can improve you monthly DTI which can improve your credit score. This is what I think, I could be wrong. But as always great video

[brettchandler]

Great video! I would love to see the math, side by side by side of an average mortgage with extra principal payments vs velocity banking vs chunking in conjunction with recast and using the monthly savings towards the HELOC. Seems like roughly each $20K chunk would increase your ability to repay by $100/mo.

[aexiga]

Best video! I’ve been looking for this explanation for the past few months. We have money from our previous home equity which we want to put it towards our new home loan. Our goal is to pay off the loan as soon as possible. We’re blessed to be able to pay our current monthly payment plus add $500 additional towards the principal. My question here is, since we were not able to put down 20% at the time of closing for our new home loan. We have to pay PMI. When we put down the large amount towards principal we should meet our 20% of home value. I can request that to be remove right ? Or with recasting the loan is the only way to take off the PMI? Thanks!

[snapbean]

If you were to recast, wouldn’t this increase cash flow thus allowing you to chunk again sooner?

[Dieselprescott]

It was an option that was told to me early on in my mortgage and I’ll be hones I did think about doing it every time I made a chunk payment but I never did and I’m glad for that because just sticking to the velocity banking way I have made huge thank you for clearing that up

[kayangoma]

Hi Mike, thank you for the clarity, I for 1 think if really you want to pay off your mortgage quick then recasting is not a way to go at it.

[philbuck]

Mike, great vid as always. I find it interesting no one ever mentions using the margin feature in a non-retirement brokerage account as a leverage tool for chunking down your debts. Works just as well as a HELOC, and much easier and cheaper to open than HELOC. Plus, because of the securities as collateral the interest rate is lower than using credit cards. There are risks to educate folks around associated with market volatility & margin calls, of course, but it still works for me, even in today's bear market, given a smaller chunk size, if necessary, my positive monthly cash flow, and the direct depositing of my pay into the acct. Would love to see you add this tool to the tool box and make a vid on this strategy, too. Stay safe and keep up the great lessons and educational content!

[pfunkinit]

Thank you for the videos you post Mike. I have to disagree with you on this point. If you are planning to pay the loan down faster with Velocity Banking, then it doesn't matter how long they stretch it out. If anything the increased cash flow is going to help you get your line of credit back to zero faster. In fact, I believe you should be recasting every time you make a lump sum payment. Not to mention that if you are paying PMI, making a lump sum payment and recasting is a great way to free up cash that is being eaten by PMI.
This is just my untested opinion before I embark on my velocity banking journey.

[brucepettwaysr.]

Great info! First time I’ve heard of recasting. Question: Should stop my 401K retirement contributions so I can increase cash flow and pay off student loans and mortgage using velocity banking.

[JimmyHFinancial]

I say leave it the same and continue to do velocity banking until its pay off asap