How to recast a mortgage, step by step
Recasting is far simpler than refinancing — there's no underwriting, no appraisal, and no credit check. The whole process usually takes 30 to 45 days from request to your first lower payment. Here's each step in detail.
Step 1: Contact your loan servicer
Start with the company you actually send your monthly payment to — your servicer, which may not be the original lender. Ask directly: "Can I recast (re-amortize) my mortgage, and what are your requirements?" Recasting isn't always advertised, so you may need to ask specifically. Get the answer in writing along with any forms you'll need.
Step 2: Confirm your loan is eligible
Eligibility depends mostly on loan type. Conventional loans backed by Fannie Mae or Freddie Mac usually qualify, and many jumbo loans do too — though jumbo policies vary by investor. FHA, VA, and USDA loans generally cannot be recast. If you have a government-backed loan, see recasting FHA, VA, and USDA loans for your alternatives. Your servicer will also typically require that your payments are current.
Step 3: Make the lump-sum principal payment
Send the qualifying lump sum directly toward principal. Minimums vary by lender but commonly fall between $5,000 and $10,000. This is the most important step to get right: explicitly instruct your servicer to apply the payment to principal, not to your next several scheduled payments, and keep written confirmation. A misapplied payment is the most common thing that derails a recast.
Step 4: Submit the recast request and pay the fee
Complete your servicer's recast request form and pay the one-time recast fee, which typically runs $150 to $500 ($250 is common). That's the entire cost — there are no closing costs, no points, and no credit pull, which is why recasting is so much cheaper than refinancing's 2–6% of the balance.
Step 5: Receive your new amortization schedule
Your servicer re-amortizes the smaller balance over the same remaining term at the same interest rate and sends you a new payment schedule. Your lower monthly payment usually takes effect within 30 to 45 days. Your rate and payoff date don't change — only the monthly principal-and-interest amount drops.
What you'll need before you start
- Your servicer's contact details and your loan number.
- The lump sum, ready to send (at or above your lender's minimum).
- The recast fee, typically $150–$500.
- Current loan details — balance, rate, and remaining term — so you can confirm the new payment against the calculator above.
How much will recasting save you?
The savings come from spreading a smaller balance over your remaining term. The bigger the lump sum and the higher your rate, the larger the drop in your monthly payment. Use the recasting calculator above to plug in your real numbers — it shows your new payment, the total interest you'll save, and how quickly the recast fee pays for itself. For most borrowers the fee is recouped within the first month or two of lower payments.
Common mistakes to avoid
- Not specifying "apply to principal." Without clear instructions, a servicer may apply your lump sum to future payments instead, which won't trigger a recast.
- Assuming any loan qualifies. Confirm eligibility before sending money — FHA, VA, and USDA loans usually can't be recast.
- Confusing recasting with refinancing. Recasting keeps your rate and term; refinancing replaces them. See recast vs. refinance if you're weighing both.
- Forgetting it won't shorten your loan. If your goal is to pay off faster, extra principal payments may suit you better than a recast.
For the full background on how recasting works, what it costs, and who it's for, read our complete guide to recasting a mortgage, or start from the basics with what is mortgage recasting. Want to know your servicer's exact minimum and fee? Check our lender recast policies table.