A mortgage recast or loan recast is when a borrower pays a large sum toward their mortgage’s principal, resulting in the lender recalculating the loan based on the new balance. I sat down with Aaron Gosser, Fairway Mortgage Branch Manager, who explained how you can purchase a new home with relatively little down, and then pull over the remainder of your equity after your sale closes. He explained the details of the loan, including the fact that this works only if your income is high enough to support both payments at the time of closing.