Payment due dates and grace periods

The appraisal protects the lender by ensuring the property is worth the amount they are lending. If the appraised value comes in lower than the purchase price, the loan-to-value (LTV) ratio becomes riskier for the lender. This can lead to a renegotiation of the sale price, the borrower needing to bring more cash to close, or the loan being denied.

If you cannot afford your original payment even after forbearance ends, you should immediately contact your servicer to discuss a long-term solution. The most common option is a loan modification, which permanently alters your loan terms to create a more affordable monthly payment based on your current financial situation.

The pre-approval process can often be completed within a few days, and sometimes even within 24 hours, once you have submitted all the required documentation to your lender.

The process is generally simple:
1. Check Eligibility: Contact your lender to confirm they offer recasts and that your loan type qualifies (e.g., conventional loans often do; FHA/VA may not).
2. Make a Lump-Sum Payment: You must make a significant principal payment, which often has a minimum requirement (e.g., $5,000 or more).
3. Submit a Request & Pay Fee: Formally request the recast from your loan servicer and pay the associated processing fee.
4. Lender Re-amortizes: Your lender applies the payment and creates a new amortization schedule based on the lower principal.
5. Confirmation: You will receive confirmation of your new, lower monthly payment and the date it takes effect.