Recast after lump sum
- New monthly payment
- Monthly savings vs now
- Total interest saved
- Recast fee
- Payoff date unchanged
- Yes
Your loan and options
Three-way comparison
Refinance the balance
- New monthly payment
- Monthly savings vs now
- Closing costs
- Breakeven (months)
- Total interest saved
Lump sum, no recast
- Monthly payment (unchanged)
- Months shaved off
- Payoff date
- Total interest saved
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Recast vs. Extra Principal Payments: Which Actually Saves More?
Same lump sum, two outcomes: the real interest math on a $400,000 loan, who should pick what, and the hybrid strategy most people miss.
Mortgage Recast Fees by Lender: What the Big Servicers Charge
What Chase, Wells Fargo, Bank of America, Rocket, and others charge ($150 to $500), minimum lump sums, and the four questions to ask your servicer.
Mortgage recast FAQs
What is a mortgage recast?
A recast (re-amortization) is when you make a large lump-sum principal payment and your lender recalculates your monthly payment based on the new, lower balance at the same interest rate and remaining term. Your rate, term, and payoff date do not change; only the payment shrinks.
How much does a recast cost?
Most lenders charge a one-time recast fee, typically around $250 (some charge $0 to $500). This calculator defaults to $250 but you can edit it to match your servicer's exact fee. Unlike refinancing, there are no closing costs and no new appraisal.
Is recasting better than refinancing?
It depends. Recasting is cheaper and simpler when you are happy with your current rate and just want a lower payment after a lump sum. Refinancing can win when current rates are well below your rate, even after closing costs. Compare the breakeven months and total interest saved in the results above before deciding.
What loans are eligible for recasting?
Most conventional conforming loans can be recast, but FHA, VA, and some USDA loans generally cannot. Lenders usually require a minimum lump sum (often $5,000 to $10,000) and may require the loan to be current. Always confirm eligibility and the fee with your loan servicer before proceeding.
What happens if I make a lump sum without recasting?
Your monthly payment stays the same, but the extra principal shortens the life of your loan, you pay it off months or years early, and you save on total interest. This calculator shows exactly how many months you would shave off.
Does a recast affect my credit or taxes?
A recast does not change your loan terms, so it is not reported as new debt the way a refinance is. Mortgage interest remains tax-deductible under the same rules, but consult a tax professional about your situation.
Affiliate disclosure: This site may earn a commission if you click a lender link and take an offer. That never changes which options we show you or how the math works. The calculator is an educational tool only.
Disclaimer: Results are estimates based on standard amortization formulas and the inputs you provide. Actual servicer calculations, fees, minimum lump sums, and eligibility vary. Not all loans are eligible for recasting (for example, most FHA and VA loans are excluded). Confirm all figures with your loan servicer before making a decision. Nothing here is financial advice.