Mortgage Recast Calculator
Buying before selling? Some homeowners use a bridge loan to buy first, sell later, and then recast the new mortgage after the previous home sells.
Mortgage Recast Information
How many times can I do a mortgage recast?
You can do a mortgage recast as many times as you would like. Check with your current mortgage loan servicer for restrictions.
Is there a cost to recast my mortgage?
There is a mortgage recast fee. The cost to recast varies for each loan servicer. It is best to contact your servicer for details.
Should I recast my mortgage?
A mortgage recast lowers your monthly payment by reducing your principal balance and keeping your loan payoff date unchanged. This can be a better option than a mortgage refinance by eliminating mortgage closing costs.
Can I recast my home loan?
Government, private investors, jumbo loans and high balance loans do NOT allow recasting. Verify with your servicer for exceptions.
How do I request a mortgage recast?
A written request must be summited to your servicer to recast your mortgage.
Mortgage Recast
A mortgage recast is a process in which the terms of an existing mortgage are adjusted without changing the interest rate or loan amount. Typically, a borrower makes a large lump-sum payment towards the principal balance of the mortgage, and the lender then recalculates the monthly payments based on the reduced outstanding loan amount. This results in a lower monthly payment, making it a useful option for homeowners who want to lower their monthly financial burden without the need to refinance or alter the interest rate.
Mortgage recasting is different from refinancing, as it does not involve obtaining a new loan with different terms. Instead, it allows borrowers to leverage a substantial payment to modify the terms of their existing mortgage. Compare current mortgage rates to the benefits of a recast mortgage.
Before You Recast, Compare Your Bigger Options
Recast vs Refinance
A mortgage recast may lower your monthly payment by applying a large principal payment to your current loan and recalculating the payment over the remaining term.
Before putting extra cash into your current mortgage, it may help to compare the bigger picture. Depending on your goals, you may want to evaluate whether recasting, refinancing, selling, or buying your next home makes more sense.
Competitive Home Lending can help Texas homeowners and homebuyers compare mortgage rate options, estimated closing costs, cash-to-close needs, and bridge loan options before making a larger financial decision.
If you’re comparing this to other options, you can review refinance options to see when replacing your loan may make more sense than keeping your current rate.
If your goal is to remove a lien, access equity, or restructure your loan, reviewing refinance options can provide more flexibility than a recast.
If you are dealing with an owelty lien, a refinance is an easier option:
- divorce
- equity division
- removing a borrower
You can also estimate closing costs to understand the difference between recasting and refinancing your loan.
Some homeowners use recasting after selling their previous home, while others explore bridge loan options to buy before they sell.
If you’re deciding between recasting and refinancing, you can review your options without a credit pull to understand what works best for your situation.
- Compare Texas mortgage rates
- Estimate your cash to close
- Check your bridge loan option
Benefits of a Mortgage Recast
Use our free mortgage recast calculator and our free mortgage calculator with current mortgage rates to compare the savings between a recast and a refinance.
Contact us if you want a personalized breakdown of your mortgage loan options.
Thinking About Buying Your Next Home?
If you are considering selling your current home and buying another property, a recast is only one option to review.
Some homeowners may be better served by comparing purchase loan options, estimated cash to close, or a bridge loan that may help them buy before selling. The right answer depends on your current loan, available equity, purchase price, down payment, timing, and whether your next offer needs to be contingent on selling your current home.
Before committing extra cash to your current mortgage, compare your next-home financing options - Buy Before You Sell with a bridge loan.
Looking to lower your monthly payments without refinancing?
Lower Your Monthly Payment, Keep Your Rate
A mortgage recast is a smart way to reduce your monthly payment by making a lump sum payment to your mortgage principal. This can save you money over the life of your loan without affecting your current low interest rate.
However, if you don't have a lump sum available, a Home Equity Line of Credit (HELOC) can be a valuable tool. A HELOC allows you to borrow against your home's equity to consolidate high-interest debt or fund home improvements. This can significantly reduce your monthly payments while preserving your low mortgage rate.
Ready to explore your options? Contact us today for a personalized consultation.
Texas HELOC options without refinancing
A HELOC can be a powerful tool for debt consolidation. By consolidating high-interest debt, like credit card balances or personal loans, into a lower-interest HELOC, you can significantly reduce your monthly payments.
Texas Mortgage Loan Options
Current Mortgage Rates
Home Loan Closing Costs
Home Loan Closing Costs
Review wholesale mortgage rate options, APR, lender fees, and estimated payment before choosing a lender.
• Compare Garland Mortgage Rates and see how much you can save.
•Find the lowest McKinney Mortgage Rates from our wholesale lenders.
Explore today’s Plano Mortgage Rates for Conventional and FHA loans.
Home Loan Closing Costs
Home Loan Closing Costs
Home Loan Closing Costs
Estimate lender fees, title costs, prepaid taxes, insurance, escrow setup, and total cash to close.
Don’t overpay at the closing table. See what typical Texas closing costs look like — and how much you can save with wholesale rates and lender credits.
Estimate costs for homes in Garland, Plano, and McKinney with our free calculator.
Buying Before Selling?
Home Loan Closing Costs
Buying Before Selling?
A bridge loan may help qualified homeowners buy their next home before selling their current one.
Local Mortgage Help
Texas Down Payment Assistance
Buying Before Selling?
Compare purchase loan options in Plano, McKinney, Frisco, Allen, Richardson, North Dallas, and nearby DFW areas. A bridge loan may help qualified homeowners buy their next home before selling their current one.
Texas Down Payment Assistance
Texas Down Payment Assistance
Texas Down Payment Assistance
Buying a home in Texas just got easier. Explore state and local down payment assistance programs designed to help McKinney, Plano, and Garland buyers qualify with less cash upfront- and how they can pair with wholesale mortgage rates to maximize your savings.
Mortgage Help for DFW Homebuyers
Competitive Home Lending works with Texas homebuyers and homeowners in Plano, McKinney, Frisco, Allen, Richardson, North Dallas, and nearby DFW areas.
Wondering how a recast compares at today’s mortgage rates?
See Today’s Mortgage Rates — Whether You’re Recasting, Refinancing, or Buying New
Before you decide whether a mortgage recast is right for you, it’s helpful to compare it to other options based on today’s mortgage rates. If your current rate is significantly higher than current mortgage rates or 30-year rates, refinancing might offer greater long-term savings. On the other hand, if your interest rate is already competitive, a recast can reduce your payment without resetting your loan. To make an informed choice, check mortgage interest rates and explore how they affect your monthly payment.
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