I bought a home in 2023 with 10% down on a $700K house at a 5.9% interest rate. Later, in 2024, I made additional principal payments totaling about $60K (in multiple transactions).
My intention was to recast my loan and lower my monthly payments. When I called Freedom Mortgage at that time, they told me I could only recast if I made a single 10% lump-sum payment, not multiple payments. That was crushing, because I thought I had missed my chance.
Now, when I reached out again, they gave me completely different information:
• They said they only look back 6 months for recast eligibility
• And that multiple transactions would have qualified me for a recast (contradicting what they told me earlier).
So basically:
• I paid down $60K cash
• Got no recast
• Lost the opportunity to lower my monthly payments and save hundreds each month
• Was misled at two different points with conflicting info
At this point I feel cheated and misled. A simple, accurate explanation from them would have completely changed how I handled my payments.
Has anyone else gone through this with Freedom Mortgage? Any advice on how to push them to honor a recast or at least make things right?
Freedom mortgage nightmare
byu/International_Bug_78 inRealEstate
Posted by International_Bug_78
8 Comments
I also have issues with freedom mortgage. They recently sold my loan to another company with the wrong information stating that I was 3 months behind on my mortgage which I was not and was easily able to prove to them through their own portal that there was no such problem. Now I have to wait until they finish communicating with the new mortgage company and get everything straightened out. They are such a wonderful, well-kept business.
Our mortgage was sold TO Freedom Mortgage a while back. No issues so far, other than their constant solicitation for me to take out a HELOC, or “Unlock my equity”.
I’d keep calling and try to work your way up the chain.
If you paid down an extra 60 K of principle on top of your regular monthly payments, that reduces your principal balance by the same amount which means that even if you continue paying the same monthly amount, a higher percentage of each payment now goes to reduce your principle . bottom line: if you’re paying the same monthly amount you will be paying off your mortgage much *earlier* than you otherwise would have without having paid off the additional 60 K in principle.
The lower monthly payments is not really “saving“ you any money assuming you still want to take the remaining full term to pay off your balance at lower monthly payments. It’s not saving you money. It’s just prepaying with the 60 K extra you paid in.
File a complaint with the CFPB, see what happens.
Recasting your mortgage costs you more in interest.
Is your goal to save money and spend less on interest overall?
Well, you are saving $100s per month, in interest, just not seeing lower payments. You will, however, pay your mortgage of many years early…more than 6 years at that. That $60k is going to save you about $285k in payments (net $225k in interest).
Why didn’t you get the recast information before you made the payments ?
I mean…it makes sense, and is semi-standard practice. This isn’t Freedom Mortgage-specific. You were doing a good thing but didn’t investigate how to do it ahead of time. Additionally, the information wasn’t conflicting, it was just additional information.
Not defending Freedom Mortgage, they spam me with equity sht all the time