Good insights here—I've noticed lenders rarely volunteer info about recasting unless you specifically ask. Had one loan officer who seemed genuinely surprised I even knew about it, haha. Curious if anyone's had luck negotiating down that recast fee...?
I've seen a few lenders waive or reduce the recast fee, but honestly, it's pretty rare. Usually, they're pretty firm on it because it's considered an administrative cost. But here's something I've wondered about—do you think lenders intentionally keep recasting under wraps because refinancing is more profitable for them? I mean, refinancing involves new closing costs and fees, so maybe there's less incentive to promote recasting openly. Had a client once who mentioned recasting to their lender, and suddenly the conversation shifted quickly back to refinancing options... seemed a bit convenient. Has anyone else noticed lenders steering conversations away from recasting when refinancing comes up?
I've definitely noticed lenders nudging conversations toward refinancing rather than recasting. Makes sense from their perspective—more fees, more profit. Had a similar experience myself: brought up recasting once, and the lender quickly pivoted to how refinancing could "benefit" me more. Made me wonder... do you think lenders train their reps specifically to steer clients toward refinancing, or is it just a natural sales instinct kicking in?
"do you think lenders train their reps specifically to steer clients toward refinancing, or is it just a natural sales instinct kicking in?"
It's probably a bit of both. From my experience, lenders definitely have internal incentives structured around refinancing—it's simply more profitable for them. I remember bringing up recasting once when I was trying to lower monthly payments on an investment property. The rep barely acknowledged the idea before launching into a pitch about refinancing and how rates were at "historic lows." It felt rehearsed, honestly.
That said, I wouldn't necessarily call it explicit training. More like subtle nudging through commissions or bonuses tied to refinancing numbers. Salespeople naturally gravitate toward whatever boosts their paycheck, even if it's not always the best fit for the client. Always good to run your own numbers before committing—trust but verify, right?
Yeah, totally agree it's subtle incentives more than outright training. When I asked about recasting, my lender acted like I'd spoken another language...then smoothly pivoted back to refinancing. Gotta love those "historic lows," right? Always pays to do your homework first.
