The $200 move
that beats refinancing.
Drop a lump sum on principal. Your servicer recalculates your monthly payment at the SAME rate and term. Pay $150–500 instead of $5K closing costs. No appraisal, no credit check, no income docs. Most homeowners have never heard of it.
Recast in
one paragraph.
You owe $250K at 6.25%. You receive a $40K bonus. You send it to your servicer with a recast request and a $250 fee. They drop your balance to $210K, recalculate your payment over the remaining term at the same 6.25%, and your monthly drops by ~$240. Forever. That's a recast.
The math is identical to refinancing into a smaller loan — but you skip the rate reset, the closing costs, the appraisal, and the credit pull. The only thing you give up is the chance at a better rate. If your current rate is fine, recast wins on effort, cost, and speed.
Run your
actual numbers.
Plug in your balance, rate, term, and lump sum. We'll show you the new payment, total interest saved, and how it compares to extra principal payments.
Your Recast Results
Current Payment
$2,321.29
New Payment
$1,989.68
Monthly Savings
$331.61
Total Savings
$111,172
over remaining term (minus fee)
Saving $331.61/month is significant.
A recast could make sense for you. Talk to a loan officer to confirm your servicer offers recasts and what the minimum lump sum is.
Book a ConsultationFive steps
from windfall to lower bill.
- 01
Confirm eligibility.
Conventional or jumbo, current on payments, past your loan's seasoning period (often 60–90 days from origination). FHA/VA/USDA = stop here.
- 02
Call your servicer.
Ask: 'What's your minimum lump sum, what's the fee, what forms do you need?' Get it in writing. Rules vary by servicer, not by lender.
- 03
Send the lump sum + form.
Most servicers want a recast request form alongside the principal payment. Don't just send the money — that becomes a regular extra payment, not a recast.
- 04
Wait 30–45 days.
Servicer re-amortizes the balance and issues a new payment schedule. Keep paying the OLD amount until the new one starts.
- 05
Pocket the savings.
New payment is permanent. You can recast again later if another windfall hits. The math compounds.
Four ways
homeowners blow this up.
Sending the lump sum without the request form.
It becomes a regular extra principal payment. Balance drops; payment doesn't. Now you have to do it all over.
Trying to recast an FHA/VA/USDA loan.
Not eligible. Period. If you have one of these, the path is refi, principal payments, or both.
Recasting when a refi makes more sense.
If rates dropped 0.75%+ since your origination AND you're staying 3+ years, a refi often beats recast even with closing costs. Run the math.
Not asking about reset of seasoning rules.
Some servicers reset your recast eligibility window after one recast. If you're planning two in 12 months, ask first.
Eight questions
we hear every week.
What is a mortgage recast?
You drop a lump sum on your principal. Your servicer re-amortizes the remaining balance over the SAME rate and term. Your monthly payment drops permanently. Typical fee: $150–500. That's it. That's the move.
How much does a recast cost?
$150 to $500. Compare that to a refi at $3,000–8,000+ in closing costs, plus appraisal, credit, income docs. A recast skips all of that.
Minimum lump sum?
Varies by servicer. Common minimums: $5K–$10K, or a percentage of balance. Call your servicer; the rule is on their internal cheat sheet, not their website.
Can I recast an FHA, VA, or USDA loan?
No. Government-backed loans are not eligible. Conventional and most jumbo loans are. If you have FHA/VA/USDA, your options are extra principal payments or refinance.
Is recasting the same as making extra payments?
No. Extra payments lower the balance and shorten the term, but your required monthly stays the same. A recast lowers the balance AND drops your payment immediately. Both save interest; only a recast gives you cash flow relief now.
How long does it take?
30–45 days after your servicer receives the lump sum and the request. Keep paying the old amount until the new schedule kicks in.
Can I recast more than once?
Yes. Most servicers allow it. Pay the fee, hit the minimum, drop your payment again. Bonus, inheritance, sale of another asset — every windfall can trigger another recast.
Recast vs refinance — which one?
Recast wins when your rate is good, you have cash, and you want simplicity. Refinance wins when current rates are 0.75%+ below your rate AND you'll stay in the home 3+ years. The two are not the same tool.
Got a windfall coming?
Don't refi. Recast.
Five minutes with an LO who knows your servicer's rules can save you $5K in closing costs and lock in lower monthly payments forever.