Mortgage Glossary
Recast
Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
A mortgage recast re-amortizes your loan after you make a large lump-sum payment toward principal, lowering the monthly payment while keeping the same rate and term.
What Recast means
Unlike a refinance, a recast does not replace the loan or require new underwriting, an appraisal, or closing costs beyond a small fee. You pay down a chunk of principal, and the lender recalculates payments over the remaining term. The interest rate and payoff date stay the same.
Florida example
A Naples homeowner who received a $60,000 bonus applied it to principal and recast a $400,000 loan for a $350 fee. The monthly payment dropped about $380 with no change to the 6.25% rate.
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