What is a reamortized loan?

A reamortized loan is a loan that has been recalculated to adjust the payment schedule, typically after a significant change in the loan terms, such as a change in interest rate or a substantial payment made towards the principal. This process redistributes the remaining balance over the new loan term, potentially lowering monthly payments or altering the length of the loan. Reamortization can be beneficial for borrowers seeking to manage their cash flow or reduce their financial burden.