If you’re dreaming of buying a new Sarasota home before selling your current one, you’re not alone! Many buyers want to secure their next home first, but worry about managing two mortgages at once. Here’s where mortgage recasting can be a game-changer.
How It Works for Sarasota Homeowners
- You purchase your new Sarasota home, often using savings or a bridge loan for the down payment.
- After moving in, you sell your previous home and receive the sale proceeds.
- Instead of refinancing, you apply those proceeds as a lump sum to your new mortgage and request a recast.
- Your lender recalculates your monthly payment based on the new, lower balance—without changing your interest rate or loan term.
Key Benefits for Sarasota Buyers
- Lower Monthly Payments: By applying your sale proceeds to your new loan, your monthly payment drops significantly—often by hundreds of dollars.
- No Need to Rush Your Sale: You can buy your dream home first and take your time selling your old one, avoiding the stress of back-to-back closings or temporary housing.
- Keep Your Low Rate: If you locked in a great rate, recasting lets you keep it, even if rates have risen since your purchase.
- Minimal Hassle: Recasting is simpler and cheaper than refinancing—no new credit check, appraisal, or major paperwork.
A Sarasota Example
Imagine you buy a $800,000 Sarasota home with a $650,000 mortgage. After selling your old home, you net $250,000. You apply that $250,000 to your new mortgage and recast—your monthly payment drops substantially, freeing up cash for beach days, boat rides, or brunch on Main Street.
Ready to Make Your Move?
If you’re considering buying before selling in Sarasota, Christine Pope or Paul Pope can guide you through every step—including connecting you with a reputable local lender who offers recasting. Reach out to Christine or Paul for advice, tips, and a smooth transition. We’ll help you avoid double-mortgage stress and make your move a breeze—no juggling act required!