Mortgage Recast Calculator

How a mortgage recast works

A mortgage recast is a re-amortization. You hand your lender a lump sum (most often from an inheritance, bonus, business sale, or proceeds from selling another property) and pay a processing fee, usually $150 to $500. The lender applies the lump sum to your outstanding principal, then recalculates what your monthly payment needs to be to pay off the (now smaller) balance over your remaining loan term, using your existing interest rate.

Three things stay the same: your interest rate, your loan term, and your loan documents. One thing changes: your monthly payment goes down. There is no credit check, no appraisal, no closing costs, no new title insurance, and no new loan.

Recast vs. refinance vs. extra payment

These three strategies all involve reducing the cost of your mortgage, but they work differently and produce very different outcomes:

The honest answer most calculators avoid: if your only goal is minimizing total interest, applying the lump sum without recasting and continuing to pay your old payment almost always wins. Recasting gives you cash flow relief (the monthly payment drops), but you give back some of the interest savings because you're stretching the smaller balance back over the full remaining term. Use the calculator above to see the exact difference for your numbers.

When a recast is the right move

Recasting is the right strategy when at least one of the following is true:

• Your current rate is lower than today's market rate (refinancing would mean a higher rate)
• You have a lump sum and want monthly cash flow relief, not faster payoff
• You sold another property and now have two mortgages, and want to lower the payment on the one you're keeping
• You inherited money and want to reduce your monthly obligations without locking up the full inheritance
• You don't qualify for a refinance (income change, credit drop, equity issues)

Recasting is the wrong strategy when current rates are well below your rate (refinance saves more), when you have no need for lower monthly payments (extra payment saves more), or when your lender won't allow it (most government-backed loans).

Servicers that publish recast terms

Recasting is offered at the discretion of your loan servicer, not guaranteed by any law or regulation. This table lists only servicers that publish their recast terms, with a link to each source.

Last verified: October 2026. A partner-lender document is written for lenders that sell loans to the servicer, not for borrowers; confirm its terms with the servicer.

Had a Mr. Cooper loan? Mr. Cooper is now part of Rocket Mortgage, which services those loans under the same loan numbers. We couldn't find Rocket's recast terms published online; call (800) 4-ROCKET to ask.

Most lenders don't publish recast terms. The company that services your loan sets them, and that may not be the lender you borrowed from. Call your servicer to confirm.

Questions to ask:

• Do you offer recasts on my loan type?
• What is the minimum lump sum?
• What is the fee?
• How long does it take?
• Does the investor who owns my loan allow it?

How to request a mortgage recast

1. Confirm eligibility. Call your loan servicer (the entity you make payments to, not necessarily the original lender) and ask: "Do you offer mortgage recasting on this loan?"
2. Get the specifics. Confirm the recast fee, minimum lump sum, processing time (it varies by servicer; ask yours), and whether there's a limit on how often you can recast.
3. Use the calculator above to confirm the recast actually delivers what you want before you commit the lump sum.
4. Submit the lump sum. Most lenders require the lump sum to be applied to principal first, then a separate recast request. Do not just send extra money and assume it will recast; it won't.
5. Sign the recast agreement. The lender sends a one-page document confirming the new payment amount and effective date.
6. Verify the first new payment. Check the next statement for the lower payment and that all auto-pays are updated.

Frequently asked questions

What is a mortgage recast?

A mortgage recast (also called re-amortization) is when you apply a lump sum to your principal and your lender recalculates your monthly payment over the remaining loan term at the same interest rate. The term length stays the same; only the monthly payment goes down.

How much does a mortgage recast cost?

Bankrate reports recast fees typically run $150 to $500, if your servicer charges one. There are no closing costs, no appraisal, no credit check, and no new loan documents, unlike a refinance, which NerdWallet says usually costs 2% to 6% of the refinanced amount.

What is the minimum lump sum?

Bankrate reports minimums are often $5,000 or $10,000, and Chase says it has no minimum. The minimum varies by servicer; check your servicer's recast policy before applying.

Is a recast better than a refinance?

It depends. Recast is better when your current rate is lower than today's rates, you want to avoid closing costs, and you have a lump sum. Refinancing tends to make sense when the monthly savings repay the closing costs before you expect to sell or refinance again. For the math, see our recast vs. refinance guide or the HELOC vs. cash-out refinance calculator.

Can I recast an FHA, VA, or USDA loan?

Recasts are generally limited to conventional loans. FHA, VA, and USDA loans aren't eligible at any servicer in our table that states which loan types qualify, including Chase.

Does recasting affect my credit score?

No. A recast does not require a credit check or hard inquiry. Your loan, term, and rate all remain the same, so it has no direct effect on your credit score.

Which lenders allow mortgage recasting?

Few servicers publish their recast terms. Bank of America, Chase, Citizens Bank, Colonial Savings, Freedom Mortgage, Gateway Mortgage, New American Funding, PennyMac, Trustmark, U.S. Bank, and Wells Fargo publish at least some terms on their own sites, and Newrez and Onity publish them in documents for partner lenders. Mr. Cooper is now part of Rocket Mortgage, which services those loans under the same loan numbers; we couldn't find Rocket's recast terms published online, so call (800) 4-ROCKET to ask. For most other servicers, you need to call and ask. The company that services your loan sets the terms, and it may not be the lender you borrowed from. See the table of servicers that publish recast terms.

How long does a recast take?

It varies by servicer, and few publish a timeline, so ask yours. The lump sum is applied first, then the lender processes the re-amortization, sends paperwork, and the new payment takes effect on the following monthly cycle.