Mortgage Recast Calculator 2026: Lower Your Payment Without Refinancing
Want a lower mortgage payment but don't want to refinance? A mortgage recast is the answer most homeowners don't know exists. Make a $50,000 lump sum payment, pay a tiny $150-$500 fee, and your lender recalculates your payment based on the lower balance — saving you $312/month while keeping your existing rate, term, and loan. No appraisal. No credit check. No income verification. No $5,000+ closing costs. This is especially powerful for homeowners who locked in 3-4% rates in 2020-2021 and don't want to lose them by refinancing at today's 6.5%. This complete guide covers how recasting works, exact savings calculations, recast vs. refinance comparison, and which lenders allow it. Already considering your options? Compare current mortgage rates to see if refinancing or recasting makes more sense for you.
📊 Mortgage Recast Quick Facts (2026)
- ✓Recast Fee: $150-$500 (one-time, vs. $3K-$6K refinance)
- ✓Min. Lump Sum: $5,000-$25,000 (varies by lender)
- ✓Processing Time: 30-45 days
- ✓Credit Check: None required
- ✓Appraisal: None required
- ✓Eligible Loans: Conventional (most). NOT FHA/VA/USDA
How a Mortgage Recast Works (Step-by-Step)
A mortgage recast — technically called reamortization — is surprisingly simple. Here's the process:
Contact Your Loan Servicer
Call or email your mortgage servicer and ask: "Do you offer mortgage recasting?" Not all servicers do, so confirm eligibility first. Ask about minimum lump sum requirements and fees.
Make a Lump Sum Payment
Send a large principal payment (typically $5,000-$100,000+). This payment goes directly to reducing your loan balance. Specify it's for a recast, not just an extra payment.
Pay the Recast Fee
Pay the one-time administrative fee of $150-$500. Some servicers waive this fee for large lump sums ($50K+) or loyal customers.
Servicer Recalculates Your Payment
Your lender reamortizes the loan: same rate, same remaining term, but lower balance = lower monthly payment. This takes 30-45 days to process.
Enjoy Lower Payments
Your new, lower payment starts the next billing cycle. You keep your original rate, original loan term, and original closing date. Nothing changes except the payment amount.
Recast Calculator: Real Savings by Lump Sum Amount
Here's how different lump sum amounts affect your monthly payment on a $350,000 mortgage at 3.25% (locked in 2021) with 25 years remaining:
| Lump Sum | New Balance | Old Payment | New Payment | Monthly Savings | Annual Savings |
|---|---|---|---|---|---|
| $10,000 | $340,000 | $1,706 | $1,657 | $49 | $588 |
| $25,000 | $325,000 | $1,706 | $1,584 | $122 | $1,464 |
| $50,000 | $300,000 | $1,706 | $1,462 | $244 | $2,928 |
| $75,000 | $275,000 | $1,706 | $1,340 | $366 | $4,392 |
| $100,000 | $250,000 | $1,706 | $1,218 | $488 | $5,856 |
⚡ Michael Thompson's Expert Take
"A $50,000 recast on a 3.25% mortgage saves $244/month — that's $2,928/year in freed-up cash flow. And you paid just $250 in fees. Compare that to refinancing at today's 6.5% rate: you'd pay $5,000+ in closing costs AND your payment would increase by $400+/month. For anyone with a sub-4% rate, recasting is the only smart option."
Now let's see the same calculation for a newer mortgage at 6.50% (2026 rate) with $400,000 balance and 28 years remaining:
| Lump Sum | New Balance | Old Payment | New Payment | Monthly Savings | 25-Yr Total Saved |
|---|---|---|---|---|---|
| $25,000 | $375,000 | $2,528 | $2,370 | $158 | $47,400 |
| $50,000 | $350,000 | $2,528 | $2,216 | $312 | $93,600 |
| $100,000 | $300,000 | $2,528 | $1,899 | $629 | $188,700 |
🏠 Not Sure If Recast or Refinance Is Better?
Compare current refinance rates to see if refinancing beats recasting for your situation.
Compare Refinance Rates →Free • No obligation • See if refinancing saves more
Recast vs. Refinance vs. Extra Payments: Complete Comparison
| Feature | Recast | Refinance | Extra Payments |
|---|---|---|---|
| Cost | $150-$500 | $3,000-$6,000+ | $0 |
| Interest Rate | Keeps current rate ✓ | New rate (higher or lower) | Keeps current rate ✓ |
| Monthly Payment | Lowers immediately ✓ | Lowers (if rate drops) | Stays the same ✗ |
| Loan Term | Same remaining term | Resets (new 30/15 yr) | Shortens ✓ |
| Credit Check | None ✓ | Full check required | None ✓ |
| Appraisal | None ✓ | Required ($400-$600) | None ✓ |
| Income Verification | None ✓ | Full docs required | None ✓ |
| Processing Time | 30-45 days | 45-60 days | Immediate |
| FHA/VA Eligible | No ✗ | Yes ✓ | Yes ✓ |
| Best For | Low-rate holders wanting lower payment | High-rate holders wanting lower rate | Anyone wanting to pay off faster |
Choose RECAST If:
- • Your rate is below 5%
- • You have a lump sum available
- • You want lower payments NOW
- • You don't want closing costs
Choose REFINANCE If:
- • Current rates are 1%+ lower
- • You want to change loan term
- • You have FHA/VA loan
- • You want cash-out equity
Choose EXTRA PAYMENTS If:
- • You want to pay off faster
- • You don't need lower payments
- • You prefer flexibility
- • You have FHA/VA loan
The key difference: extra payments shorten your loan term but don't lower your monthly payment. A recast lowers your payment but doesn't shorten the term. If cash flow relief is your priority, recast wins. If paying off the mortgage faster is your goal, extra payments win. Not sure which is right? Compare refinance rates to see all your options, or check our refinance calculator.
5 Perfect Scenarios for a Mortgage Recast
1. You Locked a 3-4% Rate in 2020-2021
You have a golden rate that's 2-3% below today's market. Refinancing would INCREASE your rate. But you received an inheritance, bonus, or sold another property and want lower payments. Recast lets you keep your amazing rate while reducing payments.
2. You Sold a Previous Home and Have Cash
You bought your new home before selling the old one (bridge situation). Now the old home sold and you have $50K-$200K in proceeds. Instead of making a lump sum payment that doesn't change your monthly obligation, recast to immediately lower your payment.
3. You're Approaching Retirement
You're transitioning from a salary to fixed retirement income and need lower monthly obligations. A $75K recast from retirement savings can drop your payment $366/month — critical breathing room on a fixed income. No credit check means your retired status doesn't matter.
4. You Received an Inheritance or Windfall
Inheritance, stock vesting, business sale, or large bonus. Rather than investing it all or paying off the mortgage entirely, a recast gives you the best of both worlds: lower payments + keeping your low rate + remaining cash for other investments.
5. Your Income Dropped (Job Change, Divorce, etc.)
Life changes reduced your income but you have savings. Refinancing requires income verification you might not pass. A recast has no income verification — just the lump sum and fee. Perfect for self-employed borrowers with irregular income or those between jobs.
💰 Compare: Recast Savings vs. Refinance Savings
See today's refinance rates to determine if refinancing beats recasting for your situation.
Check Today's Refinance Rates →Which Lenders Allow Mortgage Recasting? (2026 Guide)
| Servicer | Allows Recast? | Min. Lump Sum | Fee |
|---|---|---|---|
| Chase | Yes ✓ | $5,000 | $250 |
| Wells Fargo | Yes ✓ | $5,000 | $150 |
| Mr. Cooper | Yes ✓ | $10,000 | $250 |
| Bank of America | Yes ✓ | $5,000 | $250 |
| US Bank | Yes ✓ | $5,000 | $200 |
| Rocket Mortgage | Case-by-case | $10,000 | $500 |
| PennyMac | Yes ✓ | $10,000 | $250 |
| Newrez/Shellpoint | Yes ✓ | $25,000 | $300 |
| FHA Loans (any servicer) | No ✗ | N/A | N/A |
| VA Loans (any servicer) | No ✗ | N/A | N/A |
⚠️ Important: FHA & VA Loans Cannot Be Recast
Government-backed loans (FHA, VA, USDA) generally do not allow recasting. If you have an FHA or VA loan, your options are: 1) Make extra payments (shortens term, doesn't lower payment), 2) Refinance to a conventional loan (then recast), or 3) Use a VA IRRRL streamline refinance for lower payments.
Frequently Asked Questions
What is a mortgage recast?
A mortgage recast (reamortization) is when you make a large lump-sum payment toward your principal, then your lender recalculates your monthly payment based on the new, lower balance — while keeping your same interest rate and remaining term. It costs only $150-$500.
How much does a mortgage recast cost?
A mortgage recast typically costs $150-$500 as a one-time administrative fee. Compare this to refinancing which costs $3,000-$6,000+. No appraisal, no credit check, no income verification required.
What is the minimum lump sum for a mortgage recast?
Most lenders require $5,000-$25,000 minimum. Chase and Wells Fargo require $5,000, while Newrez requires $25,000. The larger the lump sum, the more your payment drops.
Is a mortgage recast better than refinancing?
Recast is better if you have a LOW rate you want to keep (3-4%). Refinancing is better if current rates are significantly LOWER than your rate (1%+ difference). Recast: keep rate, $150-$500 fee. Refinance: new rate, $3K-$6K+ costs.
Do all lenders allow mortgage recasts?
No. Most conventional loan servicers allow recasts, but FHA and VA loans generally do NOT. Check with your servicer — Chase, Wells Fargo, Mr. Cooper, Bank of America, and US Bank typically allow recasts.
How long does a mortgage recast take?
A mortgage recast typically takes 30-45 days. Steps: contact servicer, make lump sum payment, pay fee, servicer recalculates, new payment starts next billing cycle.
🎯 Explore All Your Payment Reduction Options
Recast, refinance, or extra payments — find the best strategy for your situation. Compare rates from 5+ lenders.
Compare Rates & Find Your Best Option →Free • No credit impact • Takes 3 minutes
Related Articles
Michael Thompson
Reverse Mortgage & Senior Specialist • NMLS #MT901234
Michael Thompson is a leading expert in mortgage optimization strategies with 15+ years of specialized experience. As a certified HECM specialist and financial planner, he has helped thousands of homeowners reduce their mortgage payments through recasting, refinancing, and strategic equity management. His compassionate approach makes complex financial decisions simple.