What Is Recast Mortgage & Mortgage Recast Meaning
A mortgage recast is the process of making a lump‑sum payment toward your loan principal and having your lender re‑amortize the remaining balance—without changing your interest rate or loan term—so you enjoy a lower monthly payment. This strategy is distinct from refinancing, which replaces your current loan with a brand‑new loan.
Lender-by-Lender Breakdown
1. PNC Recast Mortgage
Minimum Lump Sum: $10,000
Fee: Generally in the mid‑hundreds
Process: Call PNC’s mortgage team, submit a written request and the recast fee
Processing Time: Several weeks; must occur within 12 months of making the lump‑sum payment
Eligibility Criteria:
Loan must be at least six months old
Conventional loans; investor approval required
FHA and VA typically ineligible
Frequency Limits: Often one recast per 12‑month period
2. Mr. Cooper Recast Mortgage
Minimum Lump Sum: $10,000
Fee: Up to $250 (varies by state)
Process:
Complete and submit the recast request form
Make the lump‑sum payment
Receive a re‑amortization agreement confirming your new payments
Processing Time: Approximately 2–4 weeks
Eligibility Criteria:
15‑ to 30‑year conventional loans
Excludes FHA, VA, interest‑only, and adjustable‑rate mortgages
Frequency Limits: Typically one per loan
3. Freedom Mortgage Recast
Minimum Lump Sum: Usually between $5,000 and $10,000
Fee: Generally $150–$300
Process: Contact your loan servicing representative, submit a recast request, and make the payment
Processing Time: 2–6 weeks
Eligibility Criteria: Conventional loans only; must be current on payments
Frequency Limits: Varies; confirm with servicing
4. PHH Mortgage Recast
Minimum Lump Sum: Commonly $10,000
Fee: Around $150–$300
Process: Submit a written recast request to PHH’s servicing team, then provide the lump‑sum payment
Processing Time: Several weeks
Eligibility Criteria: Conventional mortgages; FHA/VA usually not eligible
Frequency Limits: Typically one recast per loan
5. US Bank Recast Mortgage
Minimum Lump Sum: Often $5,000–$10,000
Fee: Typically $200–$400
Process:
Call US Bank Mortgage Servicing
Send a written recast request
Make the lump‑sum payment
Receive your new payment schedule
Processing Time: 2–6 weeks
Eligibility Criteria: Conventional loans only; borrowers must be current
Frequency Limits: Generally limited to one per 12 months
6. AmeriHome Mortgage Recast
Minimum Lump Sum: $10,000
Fee: $250
Process:
Call AmeriHome’s recast hotline
Request the recast
AmeriHome reviews the request (7–10 days)
Finalize re‑amortization (complete within roughly two months)
Processing Time: Up to eight weeks total
Eligibility Criteria: Conventional mortgages; must be current on payments
Frequency Limits: One per loan
Comparison Table
| Lender | Min Payment | Fee Range | Loan Types | Processing Time | Frequency Limits |
|---|---|---|---|---|---|
| PNC | $10,000 | Mid‑hundreds | Conventional only | Several weeks | Once per 12 months |
| Mr. Cooper | $10,000 | Up to $250 | 15–30 yr conventional | 2–4 weeks | One per loan |
| Freedom | $5k–10k | $150–$300 | Conventional only | 2–6 weeks | Varies by loan |
| PHH | $10,000 | $150–$300 | Conventional only | Several weeks | One per loan |
| US Bank | $5k–10k | $200–$400 | Conventional only | 2–6 weeks | Once per 12 months |
| AmeriHome | $10,000 | $250 | Conventional only | Up to 8 weeks | One per loan |
Crucial Advice
Confirm Policies Directly: These guidelines can change. Always verify details with your lender’s servicing department.
Loan Type Matters: Most lenders restrict recasts to conventional mortgages; FHA, VA, and interest‑only loans are frequently excluded.
Investor Approval: Even if your servicer allows recasting, the loan’s investor must agree before you send your lump‑sum payment.
Payment Status: Recasting is generally only permitted when your loan is current—no past‑due amounts.
Frequency: Many lenders allow only one recast per loan, sometimes per calendar year or per 12‑month window. Check your lender’s limit.
Why Recast Instead of Refinance?
You keep your existing interest rate (often lower than current market rates).
There are no closing costs or underwriting fees.
Your loan term remains the same, so you reap savings only through a reduced monthly payment, not a shorter mortgage.
Mortgage recast meaning: your amortization schedule is simply adjusted to reflect the new principal balance.
Q&A
Q: Can I recast FHA or VA loans?
A: Most lenders, including Mr. Cooper, PNC, and US Bank, limit recasting to conventional loans. FHA and VA mortgages are usually ineligible.
Q: Do I lose any loan benefits?
A: No. When you opt to recast mortgage terms, you retain your original interest rate and loan term—only your monthly payment decreases.
Q: How much can I save?
A: Savings depend on how large your lump‑sum payment is, your interest rate, and the remaining term. For a quick estimate, use Mortgage Recast Calculator: See Your Potential Payment Savings.
Q: How often can I recast?
A: Policies vary by lender. Many permit one recast per 12 months or one per lifetime of the loan. Refer to your lender’s specific rules (see Article 5).
Q: My loan was sold—can I still recast?
A: Yes, but you must follow the guidelines of your current servicer. If your mortgage servicing rights transferred, consult the new servicer’s recast policy.
Next Steps & CTAs
Have your lender’s details in hand? Proceed to How to Recast Your Mortgage: A Step‑by‑Step Guide for the exact procedures, or explore Mortgage Recast: Advanced Questions Answered (Costs, Limits, Eligibility) for deeper insights. If you’re ready to see the numbers, jump into Mortgage Recast Calculator: See Your Potential Payment Savings now.
By comparing PNC Recast Mortgage, Mr. Cooper mortgage recast, Freedom Mortgage Recast, PHH Mortgage Recast, US Bank Recast Mortgage, and AmeriHome Mortgage Recast, and clarifying mortgage recast meaning and what is recast mortgage, you’re equipped to decide whether a mortgage recast is right for you.
[…] Mortgage Recast Policies: Comparing Major Lenders (PNC, Mr. Cooper, Freedom, US Bank, AmeriHome) […]
[…] servicers allow recasting. Reach out to your mortgage servicer—or consult our detailed guide on Mortgage Recast Policies: Comparing Major Lenders (PNC, Mr. Cooper, Freedom, US Bank, AmeriHome)—to verify eligibility and obtain the policy […]