Recast, Don’t Refi: Cut Your Payment Without Starting Over

Most homeowners haven’t heard of a mortgage recast—but it can slash your monthly payment without a refinance, credit check, appraisal, or new term. Tim Lucas and Craig Berry break down how recasting works, who qualifies, and the key tradeoffs vs. just making a big extra principal payment.In this episode you’ll learn:How a recast works: Make a lump-sum principal payment, pay a small admin fee, and your lender re-amortizes the remaining balance at your current interest rate and remaining term.The real-world math: On a $383,000 loan at 5.5%, a $150,000 lump sum could drop the payment from $2,271 → $1,382 (about $900/month).Recast vs. extra payment: Recasting prioritizes lower monthly payment; simply paying extra (no recast) can save ~$131,000 more interest and cut years off your loan. Pick based on cash-flow vs. total-interest goals.Who it helps most: Owners with low locked-in rates, retirees or anyone needing monthly relief, or buyers who purchase before selling and later apply sale proceeds to recast.What it costs & common rules: Typical minimums are $10,000 or ~10% of balance; fees often $250–$500; many (but not all) conventional lenders offer it; FHA/VA/USDA do not.Gotchas: You usually can’t “batch” small payments to reach the minimum; confirm servicer rules before sending funds.Read the full guide: https://www.mortgageresearch.com/articles/does-a-mortgage-recast-save-you-money/