How Much Does a Mortgage Recast Cost?

A recast costs a one-time servicer fee, and at the four lenders below it is none, $250 or not listed. The better question is how many months of the lower payment it takes to cover the fee. On a $300,000 loan at 4.5% with 25 years left, a $250 fee is covered in 1 month after a $50,000 lump sum and in 5 months after a $10,000 one.

Lender statements first, then the break-even table.

What lenders say about the fee

  • Bank of America charges no fee for a recast.
  • Wells Fargo says no transaction fee is required for its jumbo loan recast option.
  • U.S. Bank's Mortgage Servicing Fee Matrix lists a $250 recast modification fee.
  • Chase does not list a fee amount on its recast page.
  • Chase's recast page shows an example with no fees, and a disclosure on the page says fees may apply.

Other servicers set their own fees, and they can change. The full comparison, with minimums and loan limits, is in recast fees and rules by lender.

Months for the lower payment to cover the fee

The table uses a $300,000 balance, 4.5% and 25 years left, a payment of $1,667.50 (principal and interest). The fees of $250, $500, $1,000 are examples, not quotes.

Lump sumYou save a monthMonths to cover $250Months to cover $500Months to cover $1,000
$10,000$55.585918
$25,000$138.96248
$50,000$277.92124
$100,000$555.83112

Months to cover = fee divided by the monthly saving, rounded up. It counts only the payment saved, not the interest you give up by not keeping the old payment. For that comparison, see recast vs extra principal payment.

What is not a cost

  • The lump sum. It pays down your balance, so you keep it as equity.
  • The escrow change. It follows taxes and insurance, not the recast.

To put your own numbers into the break-even, use the mortgage recast calculator for the monthly saving and divide your fee by it, or build the sheet in Excel or Google Sheets.

Before you pay

  1. Ask what the fee is, when it is charged and whether it is in writing.
  2. Ask for the minimum lump sum and whether your loan type qualifies.
  3. Work out the months to cover the fee with the table above.
  4. Compare with a refinance if you also want a new rate: recast vs refinance calculator.

Frequently asked questions

How much does it cost to recast a mortgage?

The fee is a one-time charge set by your servicer, and some charge none. The lump sum you pay is not a cost: it goes to your balance. Ask your servicer for the fee in writing before you send money.

Is the lump sum part of the cost?

No. It lowers your balance. The cost to weigh is the cash you tie up in the house and the interest you would save by keeping your old payment instead. See recast vs extra principal payment.

How do I work out if the fee is worth it?

Divide the fee by the monthly saving. On the example loan a $250 fee is covered by 1 month of saving after a $50,000 lump sum, and by 5 months after a $10,000 one.

Can the fee change?

Yes. Lender pages change, and an older guide can list a fee the lender no longer charges. Use the lender's own page or your servicer's quote.

Is a recast cheaper than a refinance?

A refinance has its own closing costs and a new rate. Put both options on the same loan in the recast vs refinance calculator.

Sources

Every figure on this page comes from the pages below. Checked 2026-10-20. Rules change, so confirm with your own servicer.

More recast guides