Free Mortgage Recast Calculator
Calculate your potential savings with our mortgage recast calculator. Perfect for any loan servicer including Chase, Wells Fargo, and Bank of America. Compare payment reductions and see your new amortization schedule.
Recast vs. Refinance Comparison
Mortgage Recast
- Keep your existing interest rate
- Small or no fee, set by your lender
- No credit check at Chase
- Quick once the signed agreement is in (Bank of America: 2 business days if there are no issues)
Mortgage Refinance
- Opportunity for lower interest rate
- Higher closing costs (2-6% of loan amount)
- Credit check and income verification required
- A new application and closing, so it usually takes longer
Mortgage Recast Information
How many times can I do a mortgage recast?
Your servicer sets the limit. Chase says you could recast again after you pay down more principal, and Bank of America allows one recast in any rolling 12-month period.
Is there a cost to recast my mortgage?
The fee varies by servicer. Bank of America says no fee, Wells Fargo says no transaction fee for its jumbo loan recast, and U.S. Bank lists $250. See the fees by lender.
Should I recast my mortgage?
A mortgage recast lowers your monthly payment by reducing your principal balance and keeping your loan payoff date unchanged. This can be a better option than a mortgage refinance by eliminating mortgage closing costs.
Can I recast my home loan?
FHA, VA and USDA loans are not eligible for a recast at Chase. Other rules depend on your servicer and investor. Wells Fargo, for example, describes a recast option for jumbo loans. See the rules by lender.
More recast guides
- Recast vs Refinance Calculator - Compare both options on the same loan, with a break-even point.
- Recast Fees and Rules by Lender - Fees, minimums and loan limits published by four large lenders.
- How to Calculate a Recast Payment - The formula, a step-by-step example and the numbers to check.
- How Much Will a Recast Lower My Payment? - The lump sum divided by balance shortcut, with lookup tables.
- Recast vs Extra Principal Payment - The same lump sum two ways: payment, payoff date and interest.
- Recast Amortization Schedule - Balance and interest by year, before and after a recast.
Frequently Asked Questions
What is a mortgage recast?+
A mortgage recast is when you make a large lump sum payment toward your mortgage principal and your lender recalculates your monthly payments based on the new balance while keeping your original interest rate and term length.
How is recasting different from refinancing?+
Recasting keeps your existing loan and interest rate but reduces your monthly payments by applying a lump sum payment. Refinancing replaces your existing loan with a new one, potentially changing both your interest rate and term length.
When should I consider a mortgage recast?+
Consider a recast if you have a large sum of money (like from an inheritance or bonus), want to lower your monthly payments, and are happy with your current interest rate. It's especially beneficial if current rates are higher than your existing rate.
Is there a minimum amount required for recasting?+
Minimums vary by lender. Chase says there is no minimum, Bank of America asks for $5,000 in principal payments over the last six months, and Wells Fargo says $10,000 or more. Check with your lender.
How long does the recast process take?+
The time depends on the lender. Bank of America says it updates your payment within 2 business days after it receives your signed agreement, if there are no issues. Ask your lender for its timeline.
Can all types of mortgages be recast?+
No, not all mortgages can be recast. Chase and PNC say FHA, VA and USDA loans are not eligible. Check with your lender to confirm if your loan is eligible.
How much does it cost to recast a mortgage?+
It depends on your lender. Bank of America says no fee, Wells Fargo says no transaction fee for its jumbo loan recast, and U.S. Bank lists $250. PNC says refinance closing costs are often estimated at 2% to 5% of the loan. That is usually far more.
Benefits of a Mortgage Recast
- Lower monthly payments without refinancing
- Keep your existing interest rate
- No credit check at Chase
- Minimal fees compared to refinancing
- Reduce total interest paid over the life of the loan
- Flexible timing - can be done any time you have extra funds
Use our calculator above to see how much you could save with a mortgage recast. Contact your loan servicer to learn more about their specific recast requirements and fees.