You’ve got a lump sum—maybe a bonus, inheritance, RSU vest, or proceeds from selling another property—and you want one thing: a lower monthly mortgage payment without losing your great interest rate. That’s exactly where mortgage recasting (also called re-amortization) shines.
With a recast, you make a one-time principal payment, and your servicer recalculates (re-amortizes) your remaining balance over the same remaining term at the same interest rate. The result: lower monthly principal & interest (P&I). No full refinance, no new underwriting gauntlet, typically no appraisal.
Recasting is most common on conventional loans. Government-backed loans (FHA/VA/USDA) are often ineligible. Jumbo loan eligibility is case-by-case and varies by lender/servicer.
This guide covers what to know before you ask, typical fees and minimums, how to contact your servicer (with ready-to-use scripts), a high-level list of lenders and servicers that often allow recasting, plus a calculator to estimate your new payment in about 30 seconds.
Quick Answer: Do Lenders Offer Mortgage Recasting?
- Yes—many large banks and mortgage servicers do allow recasting on eligible conventional loans they service.
- Expect a small administrative fee and a minimum lump-sum principal payment (both vary by servicer).
- You must ask your loan servicer (the company you pay), which may be different from your original lender.
- Final eligibility can depend on the investor that owns your loan (e.g., Fannie Mae/Freddie Mac), not just the brand on your bill.
Heads-up: Policies change. Always confirm details with your servicer before you send any money.
What to Know Before You Ask
A smooth recast call takes five minutes—if you prep. Here’s the essential context so you sound confident and get clear answers fast.
Talk to your servicer, not necessarily your original lender
The servicer is the company on your statement—the one that handles payments and escrow. Even if “Local Mortgage Co.” originated your loan, servicing may have been transferred. Only your current servicer can process a recast.
Loan type is the biggest filter
- Conventional loans: The sweet spot. These are most commonly eligible for recasting (subject to investor and servicer rules).
- Government-backed (FHA/VA/USDA): Often not eligible for recasting.
- Jumbo: Case-by-case. Some lenders allow recasts on jumbo loans they service; others don’t.
What changes—and what doesn’t
- Changes: Your P&I payment decreases because your balance is smaller and re-amortized over the remaining term.
- Doesn’t change: Your interest rate and maturity date (original payoff date) typically remain the same. Escrow (taxes/insurance) is separate and can rise or fall independently at the next analysis.
Timing & standing
Most servicers require your loan to be current and seasoned (you’ve made a few on-time payments). Exact timing rules vary.
Appraisal/credit check
Because a recast is an administrative change, servicers commonly don’t require a new credit pull, income docs, or appraisal. (Confirm, don’t assume.)
Follow the process—don’t just send money
If you simply mail a big payment marked “principal,” it will likely be treated as a prepayment (great for shortening term, but your required payment won’t drop). To lower the payment, you must request a recast and follow the servicer’s steps (form + fee + timing window).
Pro tip: Ask whether recent principal prepayments (e.g., last 6–12 months) can count toward the minimum lump sum for a recast. Some servicers allow it.
Typical Recast Fee Ranges
Compared to a refinance (with full closing costs), a recast is low-cost. Most servicers charge a flat, one-time administrative fee, commonly in the few-hundreds range. Some may discount or waive it in certain scenarios.
Ask two things:
- Amount & timing (Is it paid upfront, via separate check, or drafted?)
- Cut-off dates (Is there a monthly deadline after which the new payment posts the following cycle?)
Reality check: If the fee feels high relative to the monthly savings, you can still prepay principal without a formal recast. Your required payment won’t drop, but you’ll shorten your payoff time and reduce lifetime interest.
Minimum Lump-Sum Requirements
Servicers generally enforce a minimum principal reduction to justify the re-amortization work. Requirements vary, but you’ll commonly see either:
- A fixed dollar minimum (several thousand dollars), or
- A percentage of your unpaid principal (often low single-digit %).
Only principal payments count toward the minimum. Escrow contributions do not.
Illustration (not a quote): If your remaining balance is $420,000, a “low single-digit percent” minimum could mean a five-figure lump sum. Use the calculator to test lump-sum scenarios and see the payment impact before you call.
Which Lenders & Servicers Often Allow Recasting? (High-Level Only)
Important: The notes below are general and may change. Exact fees, minimums, seasoning, or limits vary by servicer and investor guidelines. Always confirm your specific loan’s eligibility directly.
- Chase — Commonly supports recasting on many conventional loans it services. Government-backed loans are typically excluded. Confirm fees, minimums, and timing.
- Wells Fargo — Frequently allows recasts on eligible conventional loans, and may support jumbo on a case-by-case basis. Ask about escrow re-analysis and first payment date for the new amount.
- Bank of America — Often supports recasting for eligible serviced conventional loans; availability and steps may not be heavily marketed—call to confirm seasoning and documentation.
- U.S. Bank — Offers a recast-type administrative modification on certain conventional loans it services; verify eligibility and the application sequence.
- PNC / Truist / Citizens — Many national/regional banks have a recast pathway (sometimes labeled differently). Policies vary; confirm loan type, investor, and any percentage-based minimums.
- Credit unions (e.g., Navy Federal; local CUs) — Member-friendly but investor-dependent; some offer recasting, some offer alternative adjustment programs distinct from recasting.
- Non-bank servicers (Mr. Cooper, NewRez, Freedom, etc.) — Recast availability typically follows investor rules (e.g., Fannie/Freddie) more than the brand name. Expect differing forms, windows, and fee policies.
Key takeaway: Even two neighbors serviced by the same company can get different answers if their loans are owned by different investors. Always ask your servicer about your loan.
How to Contact Your Lender (Simple Scripts)
Find the phone number on your monthly statement or use the secure message center inside your online account. If phone menus mention “loss mitigation” or “payment assistance,” you can ask to be routed to a representative but immediately clarify: you’re not in hardship—you’re requesting a voluntary recast after a lump-sum principal payment.
Phone script (copy/paste)
“Hi, I’m a current customer. I plan to make a lump-sum principal payment and then request a mortgage recast (re-amortization).
Could you confirm:
- Whether my specific loan is eligible for a recast,
- The minimum lump sum required, and
- The administrative fee and the steps to process it?
Also, will my interest rate and maturity date remain the same, and how will escrow be handled?”
Follow-ups if eligible:
- “Do prior principal prepayments count toward the minimum?”
- “Is there a cut-off date each month after which the new payment posts the following cycle?”
- “Do I submit a form before or after sending funds, and how do I label the payment so it applies to principal only?”
- “When will I get a confirmation letter and see the new payment in my portal?”
Secure message / email template (concise)
Subject: Mortgage Recast Request (Loan ####)
“Hello, I’m planning a lump-sum principal payment and would like to recast my mortgage.
Please confirm my loan’s eligibility, the minimum lump sum, the administrative fee, and any required forms/steps.
Also confirm whether my interest rate and maturity date remain unchanged, and how escrow is handled.
Thank you.”
Documentation tip: Save payment confirmations, form copies, and the recast letter for your records.
Use the Calculator to Estimate Your New Payment (CTA)
A $20,000 lump sum doesn’t move the needle the same way a $70,000 lump sum does—and the impact depends on your rate and months remaining. Instead of guessing, model it.
Try our free Mortgage Recast Calculator → /mortgage-recast-calculator/
- Test different lump sums in seconds
- See your new P&I payment and interest saved
- No email required
Pro tip: Screenshot or export your results and keep them handy for the servicer call.
Recast vs. Refinance (Straight-to-the-point Comparison)
| Factor | Recast | Refinance |
|---|---|---|
| Main goal | Lower payment after a lump-sum | Change rate/term; cash-out possible |
| Interest rate | Usually unchanged | New market rate |
| Term | Usually unchanged | Can shorten/extend |
| Costs | Small admin fee | Closing costs (can be significant) |
| Underwriting | Commonly none (admin change) | Full (credit, income, appraisal) |
| Speed | Often quick | Longer process |
| Best when | You love your rate but want a lower payment | Market rates are better or you want a different term/cash-out |
Reality check: If your priority is a lower rate (not just a lower payment), refinancing—not recasting—addresses that.
Checklist: Before You Call Your Servicer
- Identify your servicer: Name and phone from your latest statement.
- Know your numbers: Loan number, remaining balance, interest rate, months remaining.
- Pick your lump sum: Decide exactly how much you’ll pay and when.
- Run the calculator: Model payment and interest impact:
/mortgage-recast-calculator/. - Prep your questions: Minimum lump sum, fee, form, timing, escrow, confirmation letter.
- Plan labeling & delivery: How to label the payment (principal only) and where to send it.
Mini Example (For Clarity, Not a Quote)
Imagine a $400,000 remaining balance at a fixed rate with 25 years left. If you apply a meaningful lump sum, your re-amortized balance spreads over the same 25 years—dropping your required payment while preserving your rate and payoff date. You can still make extra principal payments later if you want to accelerate payoff.
Use the calculator to see how different lump sums affect your monthly cash flow—and whether the savings justify the admin fee.
Frequently Asked Questions (FAQ)
Do FHA, VA, or USDA loans allow recasting?
These often don’t allow recasting. Conventional loans are typically the target. Confirm with your servicer.
Will my payoff date change if I recast?
Typically no. A recast lowers your P&I payment by re-amortizing the balance over your remaining term. If you want to pay off faster, you can make extra principal payments with or without a recast.
Can I recast more than once?
Policies vary. Some servicers permit more than one recast (sometimes with frequency limits), while others restrict it. Ask yours.
Is there a minimum lump sum to recast?
Usually yes—either a fixed dollar minimum (several thousand dollars) or a low single-digit percentage of your unpaid principal. Only principal counts.
Does recasting hurt my credit score?
Recasting is generally an administrative change to your existing loan and commonly doesn’t require a hard inquiry. Ask your servicer to be sure.
What if my servicer says no?
You can still prepay principal to shorten your payoff timeline and reduce lifetime interest. If your goal is a lower rate or a different term, consider a refinance—but only if market rates and closing costs make sense.
Does escrow change when I recast?
Your escrow for taxes and insurance is separate from P&I. Recasting lowers P&I; escrow may adjust later during its normal yearly analysis.
Will I need to send proof of funds?
Some servicers simply require the form and fee; others may ask for general verification or to route funds in a specific way. Ask about their exact steps.
Closing Thoughts
If you love your interest rate but want your monthly payment to breathe a little, a mortgage recast is one of the most elegant, low-friction tools available. With a single lump sum and a short process, you can reduce your required payment without resetting your rate or term—and often without a credit check or appraisal.
Your next step is simple:
- Model the savings with the calculator →
/mortgage-recast-calculator/. - Call your servicer with the script above to confirm eligibility, fee, and minimums.
- Follow their process, send your lump sum, and watch your new payment appear.
Heads-up: Avoid relying on friends’ experiences or brand-name assumptions. Servicer rules and investor guidelines vary—and they change. Always confirm with your servicer before moving funds.
Editor’s Note on Accuracy
To keep this guide evergreen, we’ve avoided ultra-specific lender policy claims (exact dollar minimums, percentages, or frequency limits). Use this article as your playbook, then confirm the current specifics with your servicer.