Minimums & fees by servicer

Mortgage Lender Recast Policies

A maintained reference for mortgage recast minimums and fees by lender. Use it to estimate what your servicer is likely to require, then confirm the exact terms before you send a lump sum.

Recast minimums and fees by lender

Every servicer sets its own rules for mortgage recasting: the minimum lump sum, the one-time fee, and which loan types qualify. The table below collects commonly reported figures for major U.S. lenders. Treat ranges as estimates where an exact published figure isn't verified, and read the disclaimer that follows.

Lender Minimum lump sum Recast fee Notes
Chase ~$5,000+ $150–$500 Conventional loans; confirm investor eligibility
Rocket Mortgage ~$5,000+ $150–$500 Offers recasting on eligible conventional loans
Wells Fargo ~$5,000+ $150–$500 Conventional only; government loans excluded
Bank of America ~$5,000+ $150–$500 Eligibility varies by loan and investor
UWM (United Wholesale Mortgage) $5,000 $150–$500 Published $5,000 minimum on eligible loans
American Heritage / AFR ~$10,000 $150–$500 Higher minimum (~$10,000) reported

Disclaimer: Always confirm with your servicer; policies change. These figures are general estimates compiled from commonly reported lender practices, not guarantees. Your loan's investor (Fannie Mae, Freddie Mac, or a private jumbo investor) ultimately controls whether a recast is allowed, and servicing can be transferred at any time. Verify the current minimum, fee, and eligibility in writing before sending a lump-sum payment.

Why recast policies differ between lenders

The company you mail your payment to is your servicer. It handles the recast, but the rules often come from the investor who owns the loan. That's why two borrowers at the same bank can get different answers: one loan may be a Fannie Mae conventional that allows recasting, while another is a jumbo held by an investor that doesn't. Loan servicing is also bought and sold frequently, so the lender that originated your mortgage may not be the one you call for a recast today.

The good news is that the cost side is fairly consistent. Recast fees cluster between $150 and $500 across nearly every major lender, and the process involves no credit check, no appraisal, and no new closing costs. What varies most is the minimum lump sum and whether your specific loan type is eligible at all.

How to confirm your lender's recast terms

Before you commit a lump sum, get four things in writing from your servicer: that your loan is eligible to recast, the minimum principal payment required, the one-time fee, and the date the new payment takes effect (usually 30–45 days out). Ask them to confirm the lump sum will be applied to principal and not to future scheduled payments. This is the single most common mistake that derails a recast.

For the mechanics of the request itself, see our how to recast a mortgage guide and the broader recasting a mortgage overview. If you have an FHA, VA, or USDA loan, recasting generally isn't available. See recasting FHA, VA, and USDA loans for the alternatives.

Estimate your recast savings

Enter your loan details and a lump sum to see your lower monthly payment before you contact your lender.

Your loan

$
%
years
$10,000
$1,000$75,000
$

New monthly payment

$485

↓ $75/mo lower

Current payment

$559

Total interest saved

$7,894

Lender fee (est.)

$250

Break-even

4 months

✓ Worth it. You'd save $7,894 in interest over the life of the loan. The lender's $250 processing fee pays for itself in 4 months.

Compare lump-sum amounts

See how different lump sums change your payment. Tap one to use it.

Lender recast policies: frequently asked questions

Which lenders offer mortgage recasting? +

Most major servicers of conventional loans offer recasting, including Chase, Wells Fargo, Bank of America, Rocket Mortgage, and UWM. Government-backed loans (FHA, VA, USDA) generally cannot be recast regardless of who services them. Because servicers can change policies and may sell your loan, always confirm current terms directly with the company you send your payment to.

How much does each lender charge to recast a mortgage? +

Recast fees are broadly similar across lenders, typically $150 to $500, with around $250 being common. The bigger differences are in the minimum lump sum required and whether a particular loan type or investor allows a recast at all. Confirm the exact fee with your servicer before you send the lump sum.

What is the minimum lump sum to recast at major lenders? +

Minimums commonly range from $5,000 to $10,000. UWM requires a minimum of $5,000. Some lenders such as American Heritage and AFR require around $10,000. Other major servicers often require a minimum principal reduction of roughly $5,000 or more, but the exact figure is set by your servicer and the loan investor.

What is the minimum lump sum required to recast? +

Minimums vary by lender but commonly fall between $5,000 and $10,000. For example, UWM requires $5,000 and some lenders require $10,000. Your servicer sets the exact minimum.

What is a recast fee and how much does it cost? +

A recast fee is the one-time charge your lender applies to re-amortize the loan. It usually ranges from $150 to $500, with $250 being common. Compared with refinancing, which can cost 2–6% of the loan in closing costs, a recast is far cheaper.

Which loan types cannot be recast? +

Government-backed loans (FHA, VA, and USDA) generally cannot be recast. Most conventional loans (Fannie Mae / Freddie Mac) and many jumbo loans can be. Always confirm with your specific servicer.

Can I recast a jumbo loan? +

Many jumbo loans can be recast, but policies vary widely by lender. Some jumbo investors do not allow it. Confirm eligibility and the minimum lump sum directly with your servicer.