Mortgage Recast Calculator

How to use this mortgage recast calculator

“From my statement” uses the principal balance and the years and months still left, which are on the periodic statement. “From the original loan” uses the original amount, the original term, and the first payment month, then runs the scheduled payment forward. Use the statement when you have one. The original-loan tab will not match a loan that already had extra principal.

Enter the rate, the lump sum, and a fee. The servicer menu lists only companies whose own pages stated a dollar fee, checked on October 19, 2026. Choosing one fills that fee. It is not a recommendation, and it does not mean that company services your loan. Custom fee covers everyone else, including Bank of America, PNC, and Truist, which were not verified here. Type the figure you were given, including zero.

Loan type changes the eligibility line, not the arithmetic. FHA, VA, and USDA loans are usually not eligible, and the payment is still shown. Home value, monthly PMI, and monthly escrow are optional. Escrow is added on top of principal and interest and is not re-amortized. Nothing you type is sent to a server unless an email list is actually connected.

How a mortgage recast is calculated

A recast rebuilds principal and interest on the balance after the lump sum, at the same rate, over the same months. Fannie Mae’s servicing guide calls the extra principal a curtailment and points servicers to Form 181. Fannie Mae’s job aid says only principal and interest may be reduced, using the current balance, the current rate, and the remaining term. Those pages do not set a dollar minimum or a fee. “Substantial” is not a number there.

Divide the annual rate by 12. The payment is the balance times that monthly rate, divided by one minus (1 plus the monthly rate) to the power of minus the remaining months. At a zero rate, divide the balance by the months. Monthly savings are the old principal and interest minus the new one. Interest if you do nothing is the old payment times the months, minus today’s balance. Interest after a recast uses the new payment and the new balance over the same months. Net savings subtract the fee. Break-even months round the fee divided by the monthly savings up to a whole month. A zero fee has no payback period.

The labeled estimate uses a $300,000 balance, a 6.5 percent rate, 300 months left, a $50,000 lump sum, and a $250 fee typed as an input, not as a typical fee. Scheduled principal and interest is $2,025.62. After the lump sum the balance is $250,000 and the new principal and interest is $1,688.02. The difference is $337.60 a month, so one month of that lower payment covers a $250 fee. Those cents are this formula, rounded to the cent. They are not a bill. A second check, $350,000 at 6 percent with 300 months left, is $2,255.05, and $300,000 on those terms is $1,932.90. Rounded to the dollar, that pair is about $2,255 and about $1,933.

Recast vs keep paying vs do nothing

Doing nothing leaves the payment and the payoff month alone. A lump sum plus a recast cuts the required payment and keeps the payoff month. The same lump sum with the old payment left in place usually costs less interest and ends sooner, because the higher payment keeps hitting principal. The table uses the labeled estimate. The result card uses the form. Keeping the old payment is what the payoff page estimates. Paying the balance off in full is a different request. The mortgage payoff explainer describes that statement.

Chase says a recast does not raise the interest that was planned at the start, but it reduces the interest savings extra principal would have produced. Onity says a recast lowers the payment and does not shorten the term. Freedom Mortgage says that without a recast the required payment stays put, and keeping it can pay the loan off faster. Any fee sits only on the recast path here.

Mortgage recast fees and minimums by lender

There is no single national recast fee in the sources used here. A dollar amount appears only when that company’s own page stated it on October 19, 2026. State law and the investor can change the charge. Anyone missing from the menu, including Bank of America, PNC, and Truist, belongs in Custom fee.

Chase’s fee schedule lists a recast modification under no-cost services when Chase agrees and the account is in good standing. Chase’s recast page also says fees may apply, and that there is no minimum lump sum. Confirm which sentence applies before you count on zero. Rocket Mortgage states $250, at least $10,000 applied to principal (several payments within a 12-month period count), at least two consecutive monthly payments before the loan is eligible, and up to 90 days to complete. The old Mr. Cooper page no longer states a fee. It now says Mr. Cooper joined Rocket Mortgage, so this page does not copy a fee from it.

Newrez states a $250 administration fee, not in every state, and a curtailment that is generally the greater of $10,000 and 10 percent of the unpaid balance. The investor can change that. The article was updated August 14, 2025. Onity states $250 where applicable, usually at least $5,000, and says to read the state fee schedule. PennyMac states a $250 processing fee paid with the lump sum and states no minimum. U.S. Bank’s fee schedule lists a $250 recast modification fee, not charged in bankruptcy or under the Servicemembers Civil Relief Act. Servbank states $500 and at least $10,000, at once or combined within three months of the request. Wells Fargo states no transaction fee on its jumbo option after $10,000 or more, confirmed by phone. That is not every Wells Fargo mortgage. Freedom Mortgage says the fee can be several hundred dollars and publishes no number, so it is not a preset.

Who can recast? Eligibility rules

Conventional loans are the ones these servicers usually recast, and the servicer still decides. Fannie Mae will buy a re-amortized loan after a substantial curtailment when the only note change is the lower payment, the original amount fit the limits at acquisition, the borrower was qualified on that original amount, and Form 181 is in the file and with the custodian. That is a delivery rule for a loan Fannie Mae is purchasing. It is not an order that every conventional servicer must offer a recast.

FHA, VA, and USDA loans are usually not eligible. Chase says those three are not eligible for its recast. Newrez also excludes most jumbo loans, home-equity lines, bond loans, interest-only loans, and Ginnie Mae loans. Onity requires a conventional loan and usually excludes government-backed loans (FHA, VA, or Ginnie Mae), home-equity lines, commercial loans, a negatively amortizing adjustable-rate loan still in interest-only, and an active buydown. Servbank limits the recast to Fannie Mae and Freddie Mac conventional first liens. Freedom says you cannot recast a VA, FHA, or USDA loan with them.

Jumbo is not one answer. Newrez says most jumbo loans are not eligible. Wells Fargo publishes a jumbo option. Ask the servicer. Chase and Onity want the loan current. Servbank also wants no active bankruptcy, no interest-only period, no rate change inside 30 days, fees paid, and no servicing transfer inside 15 days, and it says some investors allow only one recast in 12 months. Rocket wants at least two consecutive monthly payments made. Freedom says there is generally no limit, and that each recast can carry a fee.

Recast vs refinance vs extra payments

Extra principal, a recast, and a refinance are three different transactions. Extra principal cuts the balance. The CFPB says you may be allowed to pay extra principal, that you should read the note for a prepayment penalty, and that the extra should be applied to principal rather than interest. The required payment stays on the old schedule unless someone re-amortizes it. A recast is that re-amortization: same note, same rate, same maturity, new payment, and often a servicing fee. A refinance is a new loan that pays this one off. The new rate, the new term, and the closing costs belong on the Loan Estimate.

The table under this heading is that comparison. Onity’s chart says a recast keeps the rate and the term, lowers the payment, and skips a credit check. An extra principal payment leaves the required payment alone. A refinance can change the rate, the term, and the payment, and it uses an application. Newrez says a refinance can fit better when a lower rate is available or the goal is a shorter term, and that refinancing can raise total finance charges. The optional refinance lines use only numbers you type. They are not a quote. Taxes and insurance sit on the full-payment calculator.

Recasting to remove PMI

The PMI note shows up only after you enter a home value, and the request-cancellation line shows only when the balance after the lump sum is at or below 80 percent of that value. It is arithmetic. It is not a cancellation.

The CFPB says you can ask to cancel PMI when the balance reaches 80 percent of original value, including by extra payments. Original value is generally the lower of the contract price and the appraisal at purchase, or the appraisal at a refinance. You must be current, have a good payment history, have no junior lien, and show the value has not fallen. That federal right comes from the Homeowners Protection Act. It covers most single-family principal-residence loans closed on or after July 29, 1999, with borrower-paid PMI. Lender-paid PMI and some high-risk loans follow different rules. Some servicers and investors, including Fannie Mae and Freddie Mac, also allow removal based on a new appraisal of today's value. That is their own policy, not the federal right. Automatic termination is generally when the scheduled balance hits 78 percent of original value, if you are current. Extra payments alone do not move that date. If the recast is handled as a loan modification, federal law says the cancellation and termination dates are recalculated to reflect the modified terms, so ask the servicer for the new dates in writing. FHA and VA mortgage insurance follow different rules.

A guessed price is not original value. Servbank says PMI removal is a separate request, subject to appraisal and the balance. If the new balance is still above 80 percent of the value you entered, the result shows the lump sum that would reach 80 percent of that entered value. The servicer decides.

Recasting after selling your old home

Servicers also describe a move: sell the old house, apply the proceeds to the new mortgage, and ask for a new payment. Chase’s page for homebuyers says that. Chase’s other limits still apply, including no FHA, VA, or USDA recast, a loan in good standing, and the notice that fees may apply.

Wells Fargo describes the same moment for its jumbo option: a principal payment of $10,000 or more after selling one home and buying another, recalculated at the then-current rate over the remaining term, with no transaction fee on that option. A bridge loan is a different product. This page does not estimate a bridge rate or a bridge fee. Ask the lender who would make that loan, and ask the new servicer whether a recast is allowed after the sale.

How to request a recast from your servicer

Call the company that collects the payment. Ask whether this investor allows a recast, what principal reduction and fee apply, whether the loan must be current, and how many times you may ask. Label the money so it posts to principal. Read the note for a prepayment penalty, as the CFPB servicer page linked above says.

Rocket says a large principal payment may not trigger a recast automatically, so you generally need a separate request. Onity aims to mail an agreement within 10 business days, gives you 30 days to return it, and updates the account within 10 business days after the signed agreement and any fee. Servbank says the agreement is notarized and to allow 45 to 90 days. Fannie Mae points servicers to Form 181. Those clocks are not interchangeable. Keep paying the current statement until the new amount is on it.

Put this estimate beside the agreement, not in place of it. The CFPB separates principal and interest from the total payment, which can include escrow for taxes and insurance. A recast does not freeze escrow. How an escrow deposit changes is on the escrow analysis page. If the agreement’s payment does not match this page, the agreement is the one you owe.

Pros and cons of a mortgage recast

The advantage the servicer pages repeat is a lower required principal-and-interest payment without a new rate, a new term, an appraisal, or a credit check. Chase says its recast does not require an appraisal or a credit check when the loan is in good standing. Newrez says the same about skipping a credit check and income verification, and about keeping the rate and avoiding refinance closing costs. The cash you need is the lump sum plus any fee.

The costs are the cash locked into the house, any fee, and the extra interest versus keeping the old payment. The loan does not get shorter. Government-backed loans are usually outside the offer. Jumbo depends on the investor. Escrow, PMI, and an adjustable rate can still change what you send. Freedom and Onity both say to compare paying the loan down without a recast, and refinancing, before you decide. This site does not rank those choices.

Frequently asked questions

Sources

Fees and eligibility lines were checked on October 19, 2026 against the servicer page named in each row. A company that is not listed was not verified, and Custom fee is the field for that figure.

• Chase: Chase’s fee schedule lists a recast modification under no-cost services. Chase’s recast page also says fees may apply, and it says there is no minimum lump sum.
• Rocket Mortgage: Rocket Mortgage says it charges $250, and that at least $10,000 must be applied to principal, and that the principal payments can be spread over a 12-month period.
• Newrez: Newrez says it charges a $250 administration fee, not in every state, and that a curtailment is generally at least $10,000 or 10 percent of the unpaid balance, whichever is greater.
• Onity: Onity says there is a $250 fee where applicable, and that the lump sum is usually at least $5,000. Check the state fee schedule.
• PennyMac: PennyMac says a $250 processing fee is paid with the lump-sum principal payment. That page does not state a minimum.
• U.S. Bank: U.S. Bank’s servicing fee schedule lists a $250 recast modification fee. It says the fee is not charged in bankruptcy or under the Servicemembers Civil Relief Act.
• Servbank: Servbank says a $500 processing fee is required, and that the principal reduction must be at least $10,000.
• Wells Fargo jumbo: Wells Fargo describes a jumbo loan recast option with no transaction fee after a principal payment of $10,000 or more. It says eligibility is confirmed by phone. This is not a fee for every Wells Fargo mortgage.
• Fannie Mae servicing guide, additional principal payments
• Fannie Mae job aid, principal curtailment on a recast loan
• Fannie Mae job aid, recast loan overview
• Chase recast page (fees may apply; no minimum stated)
• Chase recast for buyers
• Freedom Mortgage recast (no dollar fee published)
• Mr. Cooper (now part of Rocket Mortgage): former recast page retired, no fee listed
• CFPB: removing PMI
• CFPB: principal and interest versus the total payment
• CFPB: servicer rules for extra principal
• CFPB: Loan Estimate

Last updated October 19, 2026.