Guide
Mortgage recast calculator and request letter
Estimate how a lump sum principal payment plus a recast can lower your monthly mortgage payment without refinancing, then generate a recast request packet.
Current payment
$1,891
New payment
$1,722
Monthly savings
$169
Estimate only. Your servicer sets the recast fee, minimum lump sum, and whether the investor allows a recast. This does not automatically cancel PMI.
What a recast does
A mortgage recast, sometimes called a reamortization, applies a lump sum to principal and then recalculates the monthly payment over the remaining term at the same interest rate. You keep the same loan. You do not reset the clock the way a refinance does. There is usually a modest fee, often a few hundred dollars.
When a recast is useful
A recast is useful if you have a cash gift, bonus, or sale proceeds, your current rate is already attractive, and you want a lower required payment. It is also useful if you are not yet at 80 percent loan to value for PMI cancellation but want immediate payment relief while you wait.
What a recast does not do
A recast does not automatically cancel PMI. It can help you reach the PMI threshold sooner because principal drops. Investor rules vary. Some loans, including many FHA loans, have limits on recasts. Always ask your servicer for the current fee and minimum lump sum.
Use the calculator on this page
Enter your current balance, rate, remaining months, and planned lump sum. The calculator estimates the new payment and monthly savings. If the numbers work, generate a recast request letter as part of your packet.
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