What is a mortgage recast?

A mortgage recast (also called re-amortization) is a process where you make a large lump-sum payment toward your mortgage principal, and the lender re-calculates your monthly payment based on the new lower principal balance, keeping the same interest rate and remaining loan term. Example: You have a $400,000 mortgage at 3% with 25 years remaining. Your monthly payment is $1,686. You make a $100,000 lump-sum payment. New principal = $300,000. The lender re-amortizes $300,000 at 3% over 25 years. New monthly payment = $1,210. You save $476/month. The recast fee is typically $200-$500. Key features: 1) Keeps your existing interest rate — no change. 2) Keeps your remaining loan term — no extension. 3) Reduces your monthly payment based on the new lower principal. 4) No credit check required. 5) No income verification required. 6) No appraisal required. 7) Fee: $200-$500 (vs $8,000-$20,000 for a refinance). 8) Processing time: 15-30 days. 9) Not all lenders offer recasting — check with your lender. 10) Minimum lump sum: typically $10,000 or 10% of the remaining balance. Recasting is best for borrowers who have a low interest rate (3-4%) and want to lower their payment after receiving a windfall.

Is it better to recast or refinance my mortgage?

Whether it is better to recast or refinance depends on your current interest rate and goals: RECAST is better if: 1) Your current rate is low (3-4% from 2020-2023) — do not give up a low rate by refinancing at 5.875%+. 2) You have a lump sum ($10,000+) to pay toward principal. 3) You want to lower your monthly payment without closing costs. 4) You want to avoid a credit check and income verification. 5) You want to keep your existing loan term. REFINANCE is better if: 1) Your current rate is high (6%+) and you can lower it by 0.5%+. 2) You want to change your loan term (e.g., 30yr to 15yr). 3) You want to switch from ARM to fixed-rate. 4) You want cash-out (take equity from your home). 5) You do not have a lump sum for recasting. 6) You want to remove a co-borrower from the loan (divorce buyout). 7) You want to remove PMI/MIP. DO NEITHER if: 1) Your current rate is 5% and market rates are 5.875% — refinancing to a higher rate increases your payment. 2) You plan to sell the home within 2-3 years — closing costs for refinance will not be recouped. 3) You do not have a lump sum and your rate is already good.

How much does a mortgage recast cost?

A mortgage recast typically costs $200-$500 in fees, compared to $8,000-$20,000 for a mortgage refinance. Here is the cost breakdown by lender: 1) Rocket Mortgage — $250 recast fee. 2) Guaranteed Rate — $200-$500. 3) Wells Fargo — $250. 4) U.S. Bank — $250. 5) Bank of America — $250-$500. 6) Chase — $250-$500. 7) loanDepot — $250-$500. 8) New American Funding — $250. 9) Better.com — $250 (if available, case-by-case). 10) PNC Bank — $250-$500. The recast fee covers the administrative cost of re-amortizing your loan. There are no other costs — no appraisal ($500-$700 saved), no title insurance ($1,000-$3,000 saved), no origination fee ($2,000-$4,000 saved), no credit check, and no income verification. Total recast cost: $200-$500. Total refinance cost: $8,000-$20,000. The recast pays for itself in less than 1 month for most lump-sum amounts. Example: $50,000 lump sum on $400K loan at 3% saves $238/month. Recast fee $250. Payback = 1 month. Refinance closing costs $12,000. If refinance saves $100/month, payback = 120 months (10 years).

What is the minimum lump sum for a mortgage recast?

The minimum lump sum for a mortgage recast varies by lender but is typically $10,000 or 10% of the remaining principal balance, whichever is greater. Here are the requirements by lender: 1) Rocket Mortgage — $10,000 or 10% of remaining balance. 2) Guaranteed Rate — $10,000. 3) Wells Fargo — $10,000 or 10% of remaining balance. 4) U.S. Bank — $10,000. 5) Bank of America — $10,000. 6) Chase — $10,000 or 10% of remaining balance. 7) loanDepot — $10,000. 8) New American Funding — $5,000 (lowest minimum). 9) Better.com — $10,000 (if available). 10) PNC Bank — $10,000. Example: If your remaining balance is $350,000, the minimum lump sum at most lenders is $35,000 (10% of $350K). At New American Funding, it is $5,000. The larger the lump sum, the more your monthly payment decreases. Example on $400K loan at 3% with 25yr remaining: $10,000 lump sum = $40/mo savings. $50,000 lump sum = $238/mo savings. $100,000 lump sum = $476/mo savings. $200,000 lump sum = $880/mo savings.

Does a mortgage recast change my interest rate?

No, a mortgage recast does NOT change your interest rate. Your interest rate stays exactly the same. The recast only re-amortizes the remaining principal balance over the remaining loan term at the same interest rate. Example: If you have a $400,000 mortgage at 3.5% with 25 years remaining, and you make a $100,000 lump-sum payment, the recast re-amortizes $300,000 at 3.5% over 25 years. Your rate remains 3.5% — it does not change to the current market rate (5.875% in 2026). This is the biggest advantage of a recast: you keep your low rate while lowering your payment. If you refinanced instead, you would get the current market rate (5.875%), which would increase your rate from 3.5% to 5.875% — potentially increasing your monthly payment even with a lower principal. This is why recasting is almost always better than refinancing for borrowers with low rates (3-4%) from 2020-2023.

Can I recast my mortgage and then refinance later?

Yes, you can recast your mortgage and then refinance later. The recast does not prevent you from refinancing in the future. Here is how it works: 1) Recast now — make a lump-sum payment, lower your monthly payment, keep your low rate. 2) Refinance later — if market rates drop below your current rate in the future, you can refinance the remaining balance at the new lower rate. Example: You have a $400K mortgage at 3%. You recast with a $100K lump sum. New balance = $300K, new payment = $1,210. Two years later, rates drop to 2.5%. You refinance $290K (after 2 years of principal paydown) at 2.5%. New payment = $1,143 (even lower). The recast gave you immediate payment relief, and the refinance later gave you additional savings when rates dropped. Alternatively, you could refinance first (if you can get a lower rate) and then recast with the lump sum. Or do both simultaneously (refinance to a lower rate and include the lump sum in the new loan amount).

Which lenders offer mortgage recasting?

Not all lenders offer mortgage recasting. Of the top 10 lenders in our comparison, 9 offer recasting: 1) Rocket Mortgage — Yes ($250 fee, $10K or 10% min). 2) Guaranteed Rate — Yes ($200-$500 fee, $10K min). 3) Wells Fargo — Yes ($250 fee, $10K or 10% min). 4) U.S. Bank — Yes ($250 fee, $10K min). 5) Bank of America — Yes ($250-$500 fee, $10K min). 6) Chase — Yes ($250-$500 fee, $10K or 10% min). 7) loanDepot — Yes ($250-$500 fee, $10K min). 8) New American Funding — Yes ($250 fee, $5K min — lowest). 9) Better.com — Limited (case-by-case, $250 if available). 10) PNC Bank — Yes ($250-$500 fee, $10K min). Note: if your mortgage was sold to a different servicer (e.g., Mr. Cooper, PennyMac, Lakeview Loan Servicing), you need to contact your current servicer about recasting, not the original lender. Most servicers offer recasting, but policies and fees vary. Contact your servicer's customer service and ask specifically about their "mortgage recast" or "re-amortization" program.

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

Yes, you can recast most conventional, FHA, and VA loans, but the availability depends on your lender/servicer: 1) Conventional loans — most lenders offer recasting for conventional loans (Fannie Mae and Freddie Mac backed). This is the most common type of recast. 2) FHA loans — FHA loans can be recast, but not all servicers offer it. Contact your FHA loan servicer and ask about recasting. The recast keeps your FHA rate and MIP. 3) VA loans — VA loans can be recast by some servicers, but it is less common. Contact your VA loan servicer. The recast keeps your VA rate and does not require a new funding fee. 4) USDA loans — USDA loan recasting is rare. Check with your servicer. 5) Jumbo loans — jumbo loan recasting depends on the lender (portfolio loans are more flexible). 6) Non-QM loans — Non-QM loan recasting is lender-dependent. The key: contact your current loan servicer (the company you send your mortgage payments to) and ask specifically about recasting. They will tell you if it is available, the fee, and the minimum lump sum.

Does recasting my mortgage affect my credit score?

No, recasting your mortgage does NOT affect your credit score. Here is why: 1) No credit check — the lender does not pull your credit report for a recast. There is no hard inquiry. 2) No new loan — the recast modifies your existing loan; it does not create a new loan. 3) No change to loan terms — the interest rate and remaining term stay the same. Only the principal balance and monthly payment change. 4) No credit reporting change — the loan continues to be reported to credit bureaus as the same account with the same open date. 5) Payment history — as long as you continue making the new (lower) payments on time, your credit score is not affected. Compare to refinancing: a refinance requires a hard credit inquiry (temporary 5-10 point drop), creates a new loan account (which can temporarily lower your average account age), and may cause a small score dip. The recast is completely transparent to your credit report. This is another advantage of recasting over refinancing.

Can I recast my mortgage multiple times?

Yes, you can recast your mortgage multiple times, but most lenders limit recasts to once or twice during the life of the loan. Here are the policies by lender: 1) Rocket Mortgage — allows 1-2 recasts per loan (case-by-case). 2) Guaranteed Rate — typically 1 recast per loan. 3) Wells Fargo — allows multiple recasts (case-by-case, $250 fee each time). 4) U.S. Bank — typically 1 recast per loan. 5) Bank of America — allows multiple recasts (case-by-case). 6) Chase — typically 1-2 recasts per loan. 7) loanDepot — typically 1 recast per loan. 8) New American Funding — allows multiple recasts ($250 fee each time). 9) PNC Bank — typically 1 recast per loan. If you want to make multiple lump-sum payments over time, an alternative to recasting is to simply make extra principal payments without recasting. This reduces your principal and total interest but does not lower your required monthly payment. When you have accumulated a significant lump sum, you can then request a recast to lower your required payment. Example: Make $500/month extra principal payments for 3 years ($18,000 total). Then request a recast with the $18,000 principal reduction. The recast lowers your required payment, giving you flexibility if your income changes.

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MORTGAGE22 min read2026-08-15

Marcus Reid

Mortgage Strategist & HELOC Specialist · NMLS #1985623, CRMP

Mortgage Recast vs Refinance 2026: Top 10 Lenders Compared (Which Is Better?)

Rates Updated: June 27, 2026

A mortgage recast and a refinance are two different ways to lower your monthly mortgage payment, but they work in fundamentally different ways. A recast keeps your existing interest rate and loan term but re-amortizes the loan after you make a large lump-sum payment toward principal — reducing your monthly payment without changing your rate. A refinance replaces your entire mortgage with a new loan, potentially at a lower rate, but with closing costs (2-5% of the loan amount). In 2026, with rates at 5.875-7.250%, recasting is often better than refinancing if you already have a low rate (3-4%) from 2020-2023 and just want to lower your payment after receiving a windfall (inheritance, bonus, home sale). Recasting costs $200-$500 (vs $8,000-$20,000 for a refinance) and does not require a credit check or income verification. We compared the top 10 lenders for mortgage recasting and refinancing and ranked them based on recast availability, recast fees, refinance rates, closing costs, and customer satisfaction. Whether you received a lump sum and want to lower your payment or you are considering refinancing to a lower rate, this guide will help you choose the right option in 2026. [cta:Compare today's best recast and refinance options|mortgage]

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Top 10 Mortgage Recast and Refinance Lenders 2026: Side-by-Side Comparison

We compared the 10 best lenders for mortgage recasting and refinancing across 7 critical factors: recast availability, recast fee, refinance rate, refinance closing costs, min credit score, recast min lump sum, and processing time.

Not all lenders offer recasting. These 10 do, along with competitive refinance options. Compare recast and refinance lenders

Rank	Lender	Recast Available	Recast Fee	Refinance Rate	Refinance Closing Costs	Min Lump Sum for Recast	Get Started
1	Rocket Mortgage	Yes	$250	5.875%	2-5% of loan	$10,000 or 10% of balance	Get recast or refinance
2	Guaranteed Rate	Yes	$200-$500	5.875%	2-5% of loan	$10,000	Get recast or refinance
3	Wells Fargo	Yes	$250	6.000%	2-5% of loan	$10,000 or 10% of balance	Get recast or refinance
4	U.S. Bank	Yes	$250	6.000%	2-5% of loan	$10,000	Get recast or refinance
5	Bank of America	Yes	$250-$500	6.000%	2-5% of loan	$10,000	Get recast or refinance
6	Chase	Yes	$250-$500	6.125%	2-5% of loan	$10,000 or 10% of balance	Get recast or refinance
7	loanDepot	Yes	$250-$500	6.125%	2-5% of loan	$10,000	Get recast or refinance
8	New American Funding	Yes	$250	6.125%	2-5% of loan	$5,000	Get recast or refinance
9	Better.com	Limited — case-by-case	$250 if available	5.990%	2-4% of loan (digital, lower costs)	$10,000	Get recast or refinance
10	PNC Bank	Yes	$250-$500	6.250%	2-5% of loan	$10,000	Get recast or refinance

Best Lenders for Mortgage Recast vs Refinance

Nov 1

Rocket MortgageBEST RATE

Best online experience

5.750%

Min credit: 620

Better.com

No lender fees

5.625%

Min credit: 620

Veterans United

Best for VA loans

5.500%

Min credit: 580

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Mortgage Recast vs Refinance: Complete Comparison

Understanding the difference between a recast and a refinance is critical. Here is a complete side-by-side comparison.

Recast = keep your rate, lower your payment with a lump sum, $200-$500 fee. Refinance = new rate, new loan, $8,000-$20,000 closing costs. Compare recast vs refinance

Feature	Mortgage Recast	Mortgage Refinance	Better Option	Get Started
How it works	Make a lump-sum principal payment, lender re-amortizes the remaining balance over the remaining term	Pay off existing mortgage with a new loan at a new rate and term	Depends on your goal	Compare methods
Interest rate	Keeps your existing rate (no change)	Gets a new rate (could be lower or higher)	Recast if you have a low rate (3-4%), Refinance if you can lower your rate	Compare rates
Monthly payment	Reduced (based on new lower principal)	Reduced (if new rate is lower or term is extended)	Both reduce payment	Compare payments
Closing costs	$200-$500 (recast fee)	$8,000-$20,000 (2-5% of loan amount)	Recast is much cheaper	Compare closing costs
Credit check	Not required	Required (full credit pull)	Recast is easier	Compare credit checks
Income verification	Not required	Required (W-2, pay stubs, tax returns)	Recast is easier	Compare income verification
Appraisal	Not required	Required	Recast is easier	Compare appraisal
Loan term	Keeps remaining term (no extension)	Can extend or shorten term	Refinance offers term flexibility	Compare loan terms
Lump sum required	Yes — typically $10,000+ or 10% of balance	No lump sum required (but can include cash-out)	Recast requires cash, Refinance does not	Compare lump sum
Processing time	15-30 days	30-45 days	Recast is faster	Compare timeline
Total interest paid	Reduced (lower principal at same rate)	Could increase or decrease (depends on new rate and term)	Depends on rate difference	Compare total interest
Best for	Borrowers with a low existing rate (3-4%) who have a lump sum to pay down principal	Borrowers with a high existing rate (6%+) who can lower their rate by 0.5%+	Choose based on your rate	Choose best option

When to Recast vs When to Refinance: Decision Guide

Choosing between recast and refinance depends on your current rate, available cash, and goals. Here is a decision guide.

If your current rate is 3-4%: RECAST (do not give up your low rate). If your current rate is 6%+: REFINANCE if you can lower by 0.5%+. Choose recast or refinance

Your Situation	Recommended Action	Why	Savings Example	Get Started
Current rate 3-4%, have $50K lump sum	RECAST	Do not give up your 3% rate. Recast lowers payment by $238/mo for $250 fee	$50K lump sum on $400K loan at 3% = payment drops from $1,686 to $1,448 = $238/mo savings	Get recast
Current rate 6%+, can lower to 5.875%	REFINANCE	Lowering rate by 0.125-0.5% saves thousands over loan life	$400K loan at 6% → 5.875% = $32/mo savings, $11,520 over 30yr. Closing costs $8K-$20K	Get refinance
Current rate 6%+, have $50K lump sum	REFINANCE + RECAST	Refinance to lower rate, then recast with lump sum for double savings	Refinance 6%→5.875% saves $32/mo, then recast with $50K saves additional $240/mo = $272/mo total	Get refinance + recast
Current rate 3-4%, no lump sum	NEITHER	Your rate is already excellent. Do not refinance (rates are higher now). Save for a recast later	Keep your 3% rate. When you have $10K+, recast to lower payment	Keep your mortgage
Current rate 5%+, can lower to 5.875% (higher)	NEITHER — rate is going up	Refinancing to a higher rate increases your payment. Wait for rates to drop or recast if you have a lump sum	Refinancing 5% → 5.875% increases payment by $208/mo. Do not refinance	Keep your mortgage
Current rate 7%+, can lower to 5.875%	REFINANCE	Lowering rate by 1.125% saves $269/mo and $96,840 over 30yr	$400K loan at 7% → 5.875% = $269/mo savings, $96,840 over 30yr. Closing costs $8K-$20K (break-even 30-74 months)	Get refinance
Current rate 3-4%, want cash out	REFINANCE (cash-out) or HELOC	If you need cash, refinance or get a HELOC. But you lose your low rate on the refinanced amount	Cash-out refinance at 5.875% on $400K (take $50K cash) = new payment $2,398 vs $1,686 = $712/mo increase	Get cash-out refinance
Current rate 3-4%, want to pay off early	RECAST or just pay extra	Recast lowers required payment. Or just make extra principal payments (no fee, same effect)	Extra $500/mo principal on $400K at 3% = pay off 12 years early, save $130,000 in interest	Pay off early

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Mortgage Recast Savings Calculator ($400K Loan at 3%)

Here is a savings calculator showing how different lump-sum amounts affect your monthly payment when recasting a $400,000 loan at 3% interest with 25 years remaining.

A $100,000 lump-sum recast on a $400K loan at 3% saves $476/month — paying for itself in less than 1 month (recast fee $250). Calculate recast savings

Lump Sum Payment	New Principal Balance	New Monthly Payment (25yr at 3%)	Monthly Savings	Recast Fee	Payback Period	Get Started
$10,000	$390,000	$1,646	$40/mo	$250	6 months	Calculate recast
$25,000	$375,000	$1,583	$103/mo	$250	2.4 months	Calculate recast
$50,000	$350,000	$1,448	$238/mo	$250	1 month	Calculate recast
$75,000	$325,000	$1,313	$373/mo	$250	< 1 month	Calculate recast
$100,000	$300,000	$1,210	$476/mo	$250	< 1 month	Calculate recast
$150,000	$250,000	$1,008	$678/mo	$250	< 1 month	Calculate recast
$200,000	$200,000	$806	$880/mo	$250	< 1 month	Calculate recast
$300,000	$100,000	$403	$1,283/mo	$250	< 1 month	Calculate recast

How to Recast or Refinance Your Mortgage: Step-by-Step Guide

Whether you choose to recast or refinance, here is a step-by-step guide for each option.

For recast: contact your lender, make a lump-sum payment, pay the recast fee, and your payment is re-calculated. For refinance: apply with 3+ lenders, compare offers, and close on the new loan. Get started with recast or refinance

Step 1: Check your current mortgage rate — if it is 3-4%, recast is likely better. If 6%+, refinance may be better
Step 2: Determine if you have a lump sum available — recast requires $10,000+ (or 10% of balance). Refinance does not require a lump sum
Step 3: Calculate your break-even — for refinance: closing costs ÷ monthly savings = months to break even. For recast: fee ÷ monthly savings = months to break even
Step 4: For RECAST — contact your current lender and ask about their recast program (fee, min lump sum, processing time)
Step 5: For RECAST — make the lump-sum principal payment and pay the recast fee ($200-$500)
Step 6: For RECAST — the lender re-amortizes your loan and sends you a new payment schedule (15-30 days)
Step 7: For REFINANCE — get pre-qualified with at least 3 lenders from our top 10 (soft credit pull, no impact)
Step 8: For REFINANCE — compare offers: rate, closing costs, monthly savings, and break-even period
Step 9: For REFINANCE — choose the best lender, submit full application, get appraisal, and close (30-45 days)
Step 10: Enjoy your lower monthly payment — whether through recast (kept your low rate) or refinance (got a lower rate)

Mortgage Calculator

Home Price

Down Payment

20.0% down

Interest Rate (%)

Loan Term (years)

Loan Amount$320,000

Monthly Payment$1,867

Total Interest$352,276

Total Paid$672,276

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Today's Best Mortgage Rates

Updated November 1, 2026

Lender	Rate	APR	Fees	Best For	Action
Veterans United	5.500%	5.641%	$0	VA loan specialist	Check Rate
Navy Federal CU	5.500%	5.628%	$0	No PMI, military only	Check Rate
Better.com	5.625%	5.765%	$0	No lender fees	Check Rate
New American Funding	5.625%	5.780%	$1,095	FHA specialist, fast closing	Check Rate
Rocket Mortgage	5.750%	5.890%	$1,295	Best online experience	Check Rate
CrossCountry Mortgage	5.750%	5.895%	$1,500	Non-QM, complex files	Check Rate

Rates shown are illustrative. Actual rates vary by credit score, location, and loan details.

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Marcus Reid NMLS #1985623, CRMP

Mortgage Strategist & HELOC Specialist

NMLS #1985623 and CRMP. Former HELOC division manager at PNC Bank ($2B portfolio). 11+ years in home equity lending. Featured on CNBC.

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