{"id":192022,"date":"2009-05-21T17:28:00","date_gmt":"2009-05-21T22:28:00","guid":{"rendered":"https:\/\/www.panix.com\/~msaroff\/40years\/2009\/05\/21\/another-new-word-learned-in-real-estate\/"},"modified":"2009-05-21T17:28:00","modified_gmt":"2009-05-21T22:28:00","slug":"another-new-word-learned-in-real-estate","status":"publish","type":"post","link":"https:\/\/www.panix.com\/~msaroff\/40years\/2009\/05\/21\/another-new-word-learned-in-real-estate\/","title":{"rendered":"Another New Word Learned in Real Estate"},"content":{"rendered":"<p><a href=\"http:\/\/img132.imageshack.us\/img132\/773\/creditsuisseresetmarch0.jpg\"><img decoding=\"async\" src=\"http:\/\/img132.imageshack.us\/img132\/773\/creditsuisseresetmarch0.jpg\" style=\"margin: 0px 0px 10px 10px; float: right; cursor: pointer;\" width=\"400\" \/><\/a>Courtesy of <a href=\"http:\/\/www.calculatedriskblog.com\/2009\/05\/new-mortgage-loan-reset-recast-chart.html\">Calculated Risk<\/a>, I come across the term &#8220;<span style=\"font-style: italic;\">loan recast<\/span>.&#8221;<\/p>\n<p>It&#8217;s similar to a &#8220;<span style=\"font-style: italic;\">loan reset<\/span>&#8220;, in that it means that your mortgage payments are increasing, but instead of being an increase in interest rates, it is a change in terms.<\/p>\n<p>So, for example, if you have an interest-only or negative amortization mortgage, when the time comes to catch up, and make payments on principal, you have a <span style=\"font-weight: bold;\">recast.<\/span><\/p>\n<p>They are in some ways <span style=\"font-weight: bold;\">much<\/span> more worrisome than resets, because if a mortgage resets during a time of low interest rates, the payment may not change by much, but when a mortgage <span style=\"font-weight: bold;\">recasts<\/span>, the payments go up regardless of the interest rates.<\/p>\n<p>The yellow are recasts, and they look like a tsunami.<\/p>\n<p>The graph on the right<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Courtesy of Calculated Risk, I come across the term &#8220;loan recast.&#8221; It&#8217;s similar to a &#8220;loan reset&#8220;, in that it means that your mortgage payments are increasing, but instead of being an increase in interest rates, it is a change in terms. So, for example, if you have an interest-only or negative amortization mortgage, when &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1004,1088],"tags":[],"class_list":["post-192022","post","type-post","status-publish","format-standard","hentry","category-finance","category-real-estate"],"_links":{"self":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/192022"}],"collection":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/comments?post=192022"}],"version-history":[{"count":0,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/posts\/192022\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/media?parent=192022"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/categories?post=192022"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.panix.com\/~msaroff\/40years\/wp-json\/wp\/v2\/tags?post=192022"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}