When it comes to managing your mortgage, it’s important to know your options. One lesser-known but powerful tool available to some homeowners is a mortgage recast. If you’ve come into a large sum of money and want to reduce your monthly mortgage payments without refinancing, a recast mortgage might be the right move.

Let’s break down what it means, how it works, and what you can expect—the honest, straight facts.

What Is a Mortgage Recast?

A mortgage recast (also known as a loan recast) is when a borrower makes a large lump-sum payment—minimum $10,000—toward the principal of their mortgage and requests the lender to re-amortize the loan based on the new, lower balance. This reduces your monthly principal and interest (P&I) payments but does not change your interest rate or the length of your loan.

Fast Facts About Recasting

  • Loan Type: Only Conventional loans are eligible (FHA, VA, USDA loans are not).
  • Minimum Lump Sum: $10,000 or more must be applied toward the loan balance.
  • Recast Fee: $250
  • Monthly Payment Impact: Monthly P&I decreases.
  • Interest Rate: Stays the same.
  • Loan Term: Stays the same.
  • Escrow & PMI: Not affected by a recast.
  • Repeat Option: You can recast more than once during the life of the loan.

Recast Requirements

To initiate a mortgage recast, here’s what you need to know:

  • You must be current on your mortgage at the time of the request.
    (For example, if you’re requesting a recast in June, June’s payment must be made.)
  • The funds used for the recast must be applied within the current or past 12 months.
  • Requests must be submitted by mid-month to ensure processing within the same month.
  • The $250 fee, notarized paperwork, and funds must be received before finalization.

The Recast Process – Step by Step

  1. Contact a Recast Specialist
    Email your request with the lump-sum amount (at least $10,000) to recastrequests@uhm.com.
  2. Recast Package Creation
    A specialist will prepare your documents.
  3. Submit Documents & Funds
    Return your signed, notarized paperwork and funds via wire or certified check.
    • No personal checks.
    • You’ll be given a deadline—if missed, processing moves to the next month.
  4. Finalize
    Once all is received, your recast is usually finalized within two business days. A recast specialist will confirm when it’s done.

Why Consider a Recast Mortgage?

Recasting is ideal if you’ve come into extra cash—maybe from a bonus, inheritance, or home sale—and want lower monthly payments without the hassle of a full refinance. It keeps your current interest rate and term intact, which is often better than refinancing in a higher-rate market.

Final Thoughts from Nathan Young

“Recasting isn’t a tool everyone knows about, but it can make a real difference for homeowners who want to keep their current loan but improve their cash flow. As always, we’re here to walk you through it—personally and professionally.”

If you’re considering a mortgage recast or want to explore whether it’s right for you, reach out to our team today. We’ll guide you every step of the way—with no pressure and total transparency.

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