In a mortgage recast, also called re-amortization, you first make a large payment toward your loan's principal. Then, we calculate your monthly payments for the remaining term of the loan based on the new, remaining principal balance. 

The best part? You keep your current interest rate and loan term - unlike refinancing, which starts a whole new loan. 

Recasting might be a good fit if:

• You've received a lump sum of money.
• You want to lower your monthly payments.
• You're happy with your current interest rate and don't want to refinance. 

Keep in mind: There are some additional qualifications depending on your loan type. We'll help you figure out if you're eligible. 

The recasting process is straightforward.

1. Make a lump-sum payment towards your mortgage principal (usually at least $5,000). 
2. Request a recast - we'll recalculate your monthly payments based on your new balance. 
3. Get a new payment schedule with lower monthly payments. 
4. Sign and return the new recast agreement. 

This chart shows the difference between a recast, refinance or principal payment. 

		Recast		Refinance		Extra Principal Payment
Costs		Recast Fee (varies by state)		Lenders charge fees like an application fee, closing, credit report, appraisal, etc. which vary based on the lender		No fees
Interest Rate		Stays the same		Changes to current market rate		Stays the same
Monthly Payment		Goes down		May go up or down		Stays the same
Loan Term		Stays the same		Depends on new loan		Stays the same
Paperwork		Minimal		Full application process		None
Credit Check		Not required		Required		Not required

To be eligible for a recast, you'll need to meet a few basic requirements:

• The account must be current or paid ahead. 
• The loan must be a conventional mortgage.
  • Government backed loans (FHA, VA or GNMA), HELOC and commercial loans usually don't qualify. 
• Negatively amortizing adjustable-rate mortgages (ARM) loans in the interest only period and active buydown loans do not qualify.
• You'll need to make a lump-sum payment of at least $5,000, and then officially request a recast within a certain timeframe, depending on your investor. 

Once you're ready to proceed, we'll let you know the specific qualifications for your account.  

There's a $250 recast fee to cover administrative costs, where applicable. Refer to the fee schedule for your state to determine the fee. 

If you’re interested in recasting your mortgage, contact us. We'll review your account, confirm your eligibility, and let you know if there is a fee.

Interested in refinance? Contact our loan officers to learn more!

• If approved, your recast agreement will be mailed within 10 business days of your request and the new payment effective date will be printed on the agreement. 
• You'll have 30 days to review, sign and return the agreement.
• Once we receive your signed agreement and applicable fee, your account will be updated with the new recast payment details within 10 business days. 

Whether or not a recast is right for you depends on your financial situation. Speak with a financial advisor to be sure you are making the right decision for you. Some additional things to consider are:

• If interest rates are low, a refinance may be a better option. 
• Are you looking to pay off your mortgage sooner? While a recast will reduce your payment, it doesn't reduce the term of the loan.
• Do you have an emergency fund? Having money in savings for unexpected expenses is an important consideration before making large payments. 
• Is your mortgage the highest interest debt? Paying off higher interest debt, like credit cards or personal loans, may be a better choice.