Loan basics
Mortgage recast
Definition
A mortgage recast re-amortizes an existing loan after the borrower pays a lump sum toward principal, lowering the monthly payment while keeping the same rate and maturity date. Servicers usually charge a small fee and set a minimum lump sum; government loans often cannot be recast.
Mortgage recast, explained
Recasting differs from refinancing: no new loan, no credit check, no rate change.
See mortgage recast in a calculator
The Mortgage Recast Calculator shows how this works with real numbers. See your new lower payment after applying a lump sum and recasting the loan.
Open the Mortgage Recast CalculatorRelated terms
Q.01What is mortgage recast?
A mortgage recast re-amortizes an existing loan after the borrower pays a lump sum toward principal, lowering the monthly payment while keeping the same rate and maturity date. Servicers usually charge a small fee and set a minimum lump sum; government loans often cannot be recast.
Q.02Recast or make extra payments?
Extra payments shorten the loan; a recast lowers the payment. Both reduce total interest.
Explain it with their numbers
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