Mortgage Recast Guide for Lower Monthly Payments (2026)
Understand mortgage recast: lump sum payment, lower payments, keep same rate, and recast vs refinance comparison.
Summary
Mortgage recast reduces payments after lump sum without refinancing. This guide explains process and cost comparison.
Key Steps
- 1What is recast: large payment applied to principal, payments recalculated.
- 2Keep same rate: unlike refinance, original interest rate preserved.
- 3Lower fees: recast fees $100-500 vs refinance closing costs 2-5%.
- 4Qualification: most lenders allow, check eligibility requirements.
- 5Compare options: recast for payment reduction, refinance for rate change.