Mortgage Recast Calculator 2026: Lower Your Payment $400/Month Without Refinancing
The Mortgage Secret Banks Don't Advertise
Got a windfall? Tax refund? Inheritance? Bonus? Instead of refinancing and losing your low rate, recast your mortgage for just $150-$500 and lower your payment $200-$600/month!
Compare Lenders Offering Recast →Mortgage recasting is the most underutilized mortgage hack in America. For just $150-$500, you can lower your monthly payment by $200-$600 WITHOUT refinancing, credit checks, appraisals, or losing your low interest rate. If you have a lump sum of $10K-$100K+ (inheritance, bonus, tax refund), this could save you $50K+ over the life of your loan.
What Is Mortgage Recasting? (The Hidden Mortgage Hack)
Simple Definition:
Mortgage recasting (also called "re-amortization" or "principal curtailment") is when you make a large lump-sum payment toward your principal, and your lender recalculates your monthly payment based on the new lower balance—while keeping your same interest rate, loan term, and closing date.
How Mortgage Recasting Works (Real Example)
❌ BEFORE Recast:
- • Original Loan: $400,000
- • Interest Rate: 3.5%
- • Monthly Payment: $1,796
- • Remaining Balance: $380,000
- • Years Left: 28 years
✅ AFTER $50K Recast:
- • New Balance: $330,000
- • Interest Rate: 3.5% (same!)
- • New Monthly Payment: $1,481
- • Monthly Savings: $315/month
- • Recast Fee: $250 (one-time)
Why This Is GENIUS:
- ✅ Keep your low rate (no refinancing needed)
- ✅ No credit check (won't impact your score)
- ✅ No appraisal (save $400-$800)
- ✅ Minimal fees ($150-$500 vs $3K-$6K refinance costs)
- ✅ Lower payment immediately (next month!)
- ✅ Reduce total interest (pay off loan faster)
Compare lenders offering mortgage recast and see if you qualify. Most conventional loans are eligible, but FHA/VA loans typically don't allow recasting.
Mortgage Recast vs Refinance: Which Is Better? (2026 Comparison)
This is the #1 question homeowners ask: "Should I recast or refinance?" The answer depends on your interest rate, credit score, and financial goals. Here's the complete breakdown:
| Feature | Mortgage Recast | Refinance |
|---|---|---|
| Cost | $150-$500 | $3,000-$6,000 |
| Interest Rate | Stays Same ✅ | Changes (new rate) |
| Credit Check | No ✅ | Yes (hard pull) |
| Processing Time | 2-4 weeks ✅ | 30-45 days |
| Lump Sum Required | Yes ($10K+ min) | No ✅ |
✅ Choose RECAST If:
- ✓Your rate is under 5% (locked in 2020-2021)
- ✓You have $10K-$100K+ lump sum available
- ✓Your credit score dropped (can't get good refi rate)
- ✓You want minimal fees ($150-$500 vs $3K-$6K)
✅ Choose REFINANCE If:
- ✓Your rate is over 6% (can get 1%+ lower)
- ✓You don't have a large lump sum
- ✓You want to change loan term (30yr → 15yr)
- ✓You want to cash out equity
Mortgage Recast Requirements & Eligibility (2026 Rules)
✅ Loans That CAN Be Recast:
- ✓Conventional loans (Fannie Mae/Freddie Mac)
- ✓Conforming loans (under $766,550)
- ✓Jumbo loans (some lenders)
- ✓Fixed-rate mortgages (30-year, 15-year)
❌ Loans That CANNOT Be Recast:
- ✗FHA loans (not allowed by HUD)
- ✗VA loans (not allowed by VA)
- ✗USDA loans (not allowed by USDA)
- ✗Most ARMs (adjustable-rate mortgages)
📋 Minimum Requirements (Most Lenders):
- Minimum Lump Sum: $5,000-$10,000
- Loan Seasoning: 12+ months (1 year of payments)
- Payment History: No late payments in last 12 months
- Loan Status: Current (not in forbearance)
- Remaining Balance: At least $50K after recast
- Processing Time: 2-4 weeks typical
Ready to Lower Your Mortgage Payment?
Compare lenders offering mortgage recast and get quotes in 2 minutes. No credit impact.
Get Free Recast Quote Now →Frequently Asked Questions (2026)
How much does it cost to recast a mortgage?
Mortgage recast fees range from $150-$500 depending on your lender. This is 95% cheaper than refinancing ($3,000-$6,000 in closing costs).
Can I recast an FHA or VA loan?
No. FHA, VA, and USDA loans do NOT allow recasting. Only conventional loans (Fannie Mae/Freddie Mac) and some jumbo loans can be recast.
What's the minimum lump sum payment to recast?
Most lenders require $5,000-$10,000 minimum lump sum payment. Some lenders may require more ($15K-$25K), so check with your servicer.
Does recasting affect my interest rate?
No! Your interest rate stays exactly the same. You're just recalculating your monthly payment based on the new lower principal balance.
How long does mortgage recasting take?
Recasting typically takes 2-4 weeks to process. Much faster than refinancing (30-45 days).
Is recasting better than making extra payments?
It depends on your goal. Extra payments reduce total interest but don't lower your required monthly payment. Recasting lowers your monthly payment, giving you more cash flow flexibility.