Question: whats financially better? to refinance or recast of home loan? > [snip refinancing part]

> If recasting is done, $250 service charge with 10% down payment of the > current existing loan amount which would go toward principal payment. > Year of loan would be 12 and interest rate will not change.

> Which is better option?

Answer: OK I am totally confused. What does the “recasting” get you?

You stated you have a $150k loan at 6.75% for 15 years which you have already been paying for 3 years. This means you have twelve years left at 6.75%. But then you state by recasting you will get 12 years at 6.75%, which looks to me to be identical to what you already have YET you want to pay a fee of $250 to do it? What am I missing here?

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