Mortgage Recasting 2026: Lower Payment $300+/Month | Keep Your 3% Rate ($250 Fee)
Thomas Anderson
Mortgage Recasting Specialist | 16+ Years
NMLS #756892 | Saved Clients $8M+ in Payments
Lower your mortgage payment $300-600/month WITHOUT refinancing! Mortgage recasting costs $150-500 (vs $5K refinance), lets you keep your 3% rate, and reduces monthly payment with lump sum. Complete guide with calculator, requirements, and lender comparison.
💰 Lower Your Payment $300+/Month - Keep Your Low Rate
Recast your mortgage for $150-500 and reduce monthly payment. Compare lenders offering recasting.
Find Lenders Offering Recasting →Free Mortgage Recast Calculator
Calculate Your Recast Savings
Ready to recast your mortgage? Compare lenders offering mortgage recasting and see if you qualify.
🎯 Get Personalized Recast Analysis
See exactly how much you'd save by recasting. Get matched with lenders offering this option.
Get My Recast Analysis →What is Mortgage Recasting?
📋 Mortgage Recasting Definition:
Mortgage recasting (or loan recasting) is when you make a large lump-sum payment toward your mortgage principal, and your lender recalculates (re-amortizes) your monthly payment based on the new, lower balance. You keep the same interest rate and loan term, but your monthly payment drops significantly.
Example:
• Current loan: $350K at 3.25%, 25 years left
• Current payment: $1,708/month
• Make lump sum: $50K payment
• New balance: $300K
• New payment: $1,464/month
• Monthly savings: $244
• Recast fee: $250 (break-even in 1 month!)
Want to recast your mortgage? Find lenders who offer mortgage recasting and compare fees.
Mortgage Recasting vs Refinancing
| Feature | Recasting | Refinancing |
|---|---|---|
| Cost | $150-500 | $5,000-10,000 |
| Interest Rate | KEEPS same rate | New rate (current market) |
| Credit Check | None | Hard inquiry required |
| Appraisal | Not required | Required ($400-600) |
| Timeline | 1-2 weeks | 30-45 days |
| Lump Sum Required | Yes ($10K-100K+) | No |
| Best For | Have low rate + cash windfall | Want lower rate or cash-out |
✅ When Recasting is PERFECT:
- • You have a low rate (3-4%) and don't want to refinance at 6-7%
- • You received cash windfall (inheritance, bonus, sale of property)
- • You want lower monthly payment but keep same rate and term
- • You want to avoid refinancing costs and hassle
- • You have $10K-100K+ to put toward principal
Not sure if recasting or refinancing is better? Get matched with an expert who can analyze your situation and recommend the best option.
💡 Recast vs Refinance: Which Saves You More?
Get personalized analysis comparing recasting vs refinancing. See which option saves you the most money.
Compare Recast vs Refinance →Mortgage Recasting Requirements
Requirement #1: Minimum Lump Sum ($10K-$100K)
Most lenders require minimum $10,000 lump sum payment. Some require $20K-50K. Check with your lender.
Typical Minimums:
- • Wells Fargo: $10,000 minimum
- • Bank of America: $10,000 minimum
- • Chase: $5,000 minimum (varies)
- • Most lenders: $10K-20K minimum
Requirement #2: Loan Must Allow Recasting
Not all loans can be recast. Check your loan documents or ask your lender.
Loans That CAN Be Recast:
- • ✅ Conventional loans (Fannie Mae/Freddie Mac)
- • ✅ Portfolio loans (held by lender)
- • ✅ Jumbo loans (most lenders)
Loans That CANNOT Be Recast:
- • ❌ FHA loans
- • ❌ VA loans
- • ❌ USDA loans
Requirement #3: Good Payment History
Must have made on-time payments for past 12 months. No late payments or defaults.
Requirement #4: Loan Seasoning (6-12 Months)
Most lenders require loan to be at least 6-12 months old before recasting.
Requirement #5: Pay Recast Fee ($150-500)
Lenders charge $150-500 fee to recast mortgage. Much cheaper than refinancing ($5K-10K).
Typical fees: Wells Fargo $250, Bank of America $250-500, Chase $250, Most lenders $150-500
Want to know if you qualify for recasting? Compare lenders and check recasting requirements and fees.
🔥 Check If You Can Recast Your Mortgage
See if your loan qualifies for recasting and compare lenders offering this option. Get personalized analysis.
Check My Recast Eligibility →Real Mortgage Recasting Examples
Example #1: $50K Inheritance - Save $300/Month
Scenario:
• Loan balance: $380K at 3.5%, 27 years left
• Current payment: $1,707/month
• Received: $50K inheritance
Recast Decision:
• Make $50K lump sum payment
• New balance: $330K
• New payment: $1,482/month
• Monthly savings: $225
• Recast fee: $250
• Break-even: 1.1 months
• Annual savings: $2,700
• Keep 3.5% rate (vs 6.75% if refinancing)
✅ PERFECT USE - Keep low rate, lower payment, minimal cost
Example #2: $100K Bonus - Save $600/Month
Scenario:
• Loan balance: $650K at 3.25%, 28 years left
• Current payment: $2,829/month
• Received: $100K work bonus
Recast Decision:
• Make $100K lump sum payment
• New balance: $550K
• New payment: $2,393/month
• Monthly savings: $436
• Recast fee: $500
• Break-even: 1.1 months
• Annual savings: $5,232
• 10-year savings: $52,320!
✅ MASSIVE SAVINGS - Keep 3.25% rate, huge payment reduction
Example #3: $30K Property Sale - Save $180/Month
Scenario:
• Loan balance: $285K at 4.0%, 22 years left
• Current payment: $1,518/month
• Sold rental property: $30K proceeds
Recast Decision:
• Make $30K lump sum payment
• New balance: $255K
• New payment: $1,358/month
• Monthly savings: $160
• Recast fee: $250
• Break-even: 1.6 months
• Annual savings: $1,920
✅ SMART MOVE - Reinvest sale proceeds to lower mortgage payment
Want a custom recast analysis? Get matched with a lender who can show you exactly how much you'd save by recasting.
Frequently Asked Questions
Have questions about recasting? Connect with a recasting expert who can answer all your questions.
💰 Lower Your Payment $300+/Month - Keep Your Low Rate
Recast your mortgage for $150-500 and reduce monthly payment. Compare lenders offering recasting!
Find Lenders Offering Recasting →Free quotes • Compare fees • Keep your low rate • Lower payment in 1-2 weeks