Mortgage Recasting

The best-kept secret in the mortgage industry. If you have a lump sum of cash, you can lower your monthly payment without the high costs of a refinance.

The Short Answer

A Recast is NOT a refinance. You pay a lump sum (usually $5,000+) toward your principal, and the lender "re-amortizes" your remaining balance over the same term. Your rate stays the same, but your payment drops.

The Real Problem

Many people just "pay extra" toward their principal. While this shortens your loan, it DOES NOT lower your monthly payment. If you need more monthly cash flow, you must ask for a recast.

Low Cost

Most lenders charge a small fee ($250-$500) for a recast. Compare this to $5,000+ for a full refinance.

No Credit Check

Since you aren't getting a new loan, there is no credit check, no appraisal, and no income verification.

Keep Your Rate

If you have a 3% or 4% rate, you don't want to lose it. Recasting allows you to keep that rate while lowering the bill.

Recasting Decision Framework

Scenario: The "Buy Before You Sell"

You bought a new home before selling your old one. Once the old one sells, use the proceeds to recast your new mortgage and drop that high monthly payment.