Yes. Buying first, then selling and applying the proceeds, is the exact scenario recasting was built for. A quick mechanics note: making a large extra payment on a fixed-rate loan does not lower your monthly payment on its own. The payment stays the same and the loan simply pays off faster, since more of each payment now goes to principal. To get a lower payment, you contact your servicer and request a recast, which recalculates your principal and interest payment based on the new, lower balance and the remaining term. A recast is a modification of your existing loan rather than a new loan. Two things to know: - You have to ask for it. A recast never happens automatically, and the servicer can charge a modest fee for the paperwork. - Not every loan type is eligible. Confirm with your servicer before you build a plan around it. For your situation, the sequence works like this: buy the new home, sell the other property next summer, apply the proceeds as a lump sum, and recast. You end up with the loan you would have had if you had sold first, without the pressure of a rushed sale or trying to time both closings perfectly.