How to request a mortgage recast
Recasting is a simple, low-cost process — no new loan, no appraisal. Here's exactly how to do it, and what to confirm with your servicer first.
Step by step
- Confirm your loan is eligible. Call your loan servicer and ask if your loan can be recast. Most conventional loans qualify; FHA, VA and USDA loans generally do not.
- Ask about the minimum and fee. Confirm the minimum lump sum required (often $5,000–$10,000) and the recast fee (commonly $150–$500).
- Check your payment history. Servicers usually require your loan to be current and may want several consecutive on-time payments before recasting.
- Make the lump-sum principal payment. Apply the lump sum to principal as your servicer directs — some want it before the request, others alongside the form.
- Submit the recast request. Complete the servicer’s recast or re-amortization request form and pay the fee.
- Receive your new payment. The servicer re-amortizes the lower balance over your remaining term at the same rate. Your new, lower payment typically starts within one to two billing cycles.
What to ask your servicer
- Is my specific loan eligible to be recast?
- What is the minimum lump sum, and is there a maximum?
- What is the recast fee?
- How many on-time payments do you require first?
- Should I send the lump sum before or with the request form?
- Which billing cycle will my new payment take effect?
How long does it take?
Once the servicer has your lump sum, the fee and the signed request, re-amortization is mostly administrative — your lower payment usually begins within one to two billing cycles. There's no underwriting or closing to wait on like a refinance.
Before you commit the cash
Run the numbers first. Recasting lowers your payment, but applying that same lump sum to principal without recasting pays the loan off sooner and saves more interest. The recast calculator shows both side by side, and which loans qualify covers eligibility in more detail.