A re-amortization (also known as a recast) is when you make a large one-time payment of at least $10,000 in order to reduce your monthly payment amount.
What is the impact of re-amortizing a loan?
When you choose to re-amortize your loan, the maturity date of your mortgage does not change. Instead, your monthly payment amount decreases based on the amount of your one-time payment.
To get an estimate of how different one-time payment amounts would impact your monthly payment after a re-amortization, you can use this calculator in your Homeowner Account:
- Enter an amount greater than or equal to $10,000
- Select “Decrease my monthly payment, and keep the length of my loan the same”
- View estimates of your new monthly payment and how much interest you’ll save over the life of your loan
💡 Tip: You can also use the calculator to explore how a one-time payment of $10,000 or more might impact your loan without a re-amortization. To do this, select “Keep my monthly payment the same, and shorten the length of my loan.” Remember: payments of $10,000 or more must be made using certified funds.
Are there any fees?
Yes, there's a $250 non-refundable fee to process a re-amortization.
Can I re-amortize my loan if I made curtailment payments to my prior servicer?
Only if you initiated the recast process with your prior servicer can we honor a re-amortization request without any additional payment to us.
How can I request a re-amortization?
If you'd like to request a re-amortization, please email your request to support@valon.com. After you reach out to us, here’s what you can expect:
- We’ll respond to your email with an official request form. You’ll be responsible for completing the form and submitting it back to us.
- We’ll review and determine your eligibility for a re-amortization.
- If approved, we’ll ask you to send us the funds for the re-amortization (we can only accept certified checks or wire transfers).