[quote briansd1]Yeah, deadzone. The resets are what we need to watch — not necessarily interest rate resets, but resets to include principal paydown. [/quote]
Just a slight technicality:
reset = Interest rate change – like with an I/O or amortizing loan that tracks LIBOR or Prime.
recast = When an I/O mortgage becomes fully amortizing. The recast signifies a change in the ‘structure’ of the loan and not just the interest rate. Mortgage modifications or loan modifications are sometimes known as recasts – particularly if I/O to amortizing or amortizing to I/O.