You'll also keep the original rate of interest on your home mortgage. Prior to recasting your home loan, remember to seek advice from your tax preparer or CPA to figure out the tax effect. Here's when you need to think about modifying your home loan. Using this windfall to your mortgage helps reduce your regular monthly payments, which allows you to keep more cash in your pocket on a monthly basis.This might be due to a change to your earnings, possessions or credit profile that avoids you from receiving a brand-new loan. This can also hold true in a rising interest rate environment, where it's difficult to re-finance at a lower rate than your current home loan. will require you to request a new loan with a various structure, amortization schedule and interest rate.