A recast re-amortizes your existing loan after you make a large lump-sum payment, so your monthly payment drops while your interest rate and loan stay exactly the same. No refinance, no new closing costs, no giving up your rate.
Get My Free Game PlanFigures are typical 2026 guidelines and vary by borrower, property, and lender overlays; all loans subject to credit approval.
A refinance replaces your loan with a new one, at today’s rate and with full closing costs. A recast keeps your existing loan and rate and simply recalculates the monthly payment around a new, lower balance after you apply a lump sum. In a higher-rate market, keeping your low rate is often worth far more than any refinance.
Not every loan is eligible, most conventional loans allow recasting while many government loans do not, so confirm first. Connor will tell you whether your loan qualifies and run the numbers against a refinance so you keep the most money.
It re-amortizes your existing loan after a lump-sum principal payment, lowering your monthly payment while keeping your same interest rate, term, and loan, with no refinance.
A refinance replaces your loan at today's rate with full closing costs. A recast keeps your current loan and rate and just lowers the payment for a small fee, ideal when your existing rate is better than the market.
Move-up buyers applying prior-home equity to a new loan, downsizers who put a large amount down, and anyone with a windfall who wants a lower payment without giving up a low rate.
No. Most conventional loans allow it; many government loans do not. Connor confirms eligibility and compares a recast to a refinance so you keep the most money.
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