More Cash Flow on properties!

[Josh Mitchell]

This may have been in another post, but thought I should bring it back to light.

I think that not enough of us know, or take advantage of what most banks call a "re-cast" or "re-amortization" on a loan!! Typically, with a chunk payment of $10,000 or more on a loan, a bank will re-amortize your payments based on the # of months you have left to pay, and let you keep the same interest rate! (i.e. if you have made 12 months of payments, they will re-am your loan for 348 months base on the new loan amount after chunk payment is applied) 

This is an awesome way to lower your monthly payments without having to refinance the entire loan. One down side, they typically only allow one of these per loan. If you have conventional financing on any of your properties, and don't want to buy anything right now, using some funds to make "chunk" payments could increase cash flow pretty significantly!