LoanDepot Mortgage Recast Calculator
Optimize your mortgage by projecting a principal lump sum using LoanDepot's guidelines.
Mortgage recasting (also known as mortgage re-amortization) is a powerful, low-cost alternative to refinancing. By making a lump-sum payment toward your principal and asking your lender to reamortize your loan, you can permanently reduce your required monthly payment while keeping your existing interest rate and remaining loan term intact. Use this free mortgage recast calculator to model your lump-sum scenario, view your adjusted amortization curve, and see your exact monthly and lifetime interest savings.
LoanDepot Recast Policy
Contact LoanDepot servicing at 1-888-983-3240. Request information about their mortgage recast program. Submit your lump-sum principal payment, then complete and return the recast agreement form they provide.
Recasting Costs & Limits
- •Recast Processing Fee: $250 (one-time fee charged by servicer)
- •Minimum Principal Reduction: $5,000
Eligibility Requirements
- •Conventional conforming loan.
- •Minimum lump-sum payment of $5,000.
- •Account must be current.
- •Written recast request required.
Recast Scenario Inputs
$1,816
$2,124Save $308 per month
$60,829
Lifetime Impact
| Metric | Original Mortgage | Post-Recast | Delta |
|---|---|---|---|
| Monthly P&I | $2,124.22 | $1,816.37 | -$307.86 |
| Remaining Interest | $419,721 | $358,892 | -$60,829 |
| Principal Paid (Year 5) | 6.7% | 20.2% | +13.5% |
Original vs. Recast Amortization Curve
Projected Balance Over Time
5-Year Equity Advantage
By injecting a lump sum of $50,000 today, your remaining balance at Year 5 drops to $275,345 (compared to $322,013 originally). You secure $46,669 in guaranteed equity.
10-Year Debt Velocity
At Year 10, your remaining loan balance stands at $248,501 vs. $290,620 without recasting. Your principal paydown accelerates immediately without increasing your monthly overhead.
Amortization Schedule
Month-by-month breakdown
Liquidity Optimization
By moving $50,000 into your home, you're securing $308 in new monthly liquidity at a guaranteed 6.25% return.
Did you know?
Lenders charge just $150–$500 to process a recast, allowing you to lower your monthly payment without paying thousands in refinance closing costs.
Mortgage Recasting: The Complete Guide
Understand how recasting works, when to use it, and how it compares to other mortgage strategies.
1What Is a Mortgage Recast?
A mortgage recast (also called mortgage re-amortization) is when you make a large, one-time principal payment toward your existing mortgage balance, and your lender recalculates your monthly payment based on the new, lower balance. Your original interest rate and remaining loan term stay the same.
You are resetting the amortization math without resetting your loan. Your 30-year or 15-year term stays the same. Your interest rate stays the same. But because the principal balance is smaller, your required monthly payment drops permanently. There are no credit checks, no appraisals, and no thousands of dollars in closing costs. If you are considering a refinance instead, compare both options side by side first.
Your monthly mortgage payment gets calculated by amortizing your loan balance over your remaining term at your fixed interest rate. When you shrink the balance with a lump sum, the same formula spits out a lower monthly payment. The terms did not change. The principal input to the amortization formula did.
2How Does Mortgage Recasting Work?
The process has four steps:
- Verify eligibility. Contact your mortgage servicer and confirm your loan qualifies. Conventional loans owned by Fannie Mae or Freddie Mac are generally eligible. FHA, VA, and USDA loans are not.
- Make a lump-sum principal payment. Lenders require a minimum lump sum. Its typically $5,000 or 10% of the remaining balance. The payment must be designated as a principal reduction, not an early monthly payment.
- Submit the recast request. Most lenders require a signed recast agreement form. Processing usually takes 2 to 4 weeks once your lump-sum payment clears. The lender charges a one-time administrative fee, usually between $150 and $500.
- Receive your new amortization schedule. Once processed, your lender sends a revised payment schedule showing your new, permanently lower monthly payment for the rest of your original term.
Recast vs. Refinance vs. Extra Payments
| Feature | Recast | Refinance | Extra Payments |
|---|---|---|---|
| Lowers monthly payment | Yes | Yes, if rate drops | No |
| Preserves interest rate | Yes | No. Resets to market | Yes |
| Closing costs | $150-$500 fee | 2%-4% of loan | $0 |
| Requires credit check | No | Yes | No |
| Pays off loan faster | No. Same term | Resets term | Yes |
| Saves interest | Yes. Lower principal | Depends on rate | Yes. Lower principal |
When Does Recasting Make Sense?
Here are the situations where recasting is worth considering:
- You have a low rate you want to keep. If you locked in at 3% or 4% and current rates are above 6%, refinancing would push your rate higher. A recast lowers your payment but leaves your rate alone.
- You have a lump sum to deploy. An inheritance, a bonus at work, proceeds from selling a second property, or savings you have built up. Putting that cash toward your principal and recasting immediately frees up monthly cash flow.
- You want a lower required payment. A recast drops your mandatory monthly payment. You can still pay extra whenever you want, but your minimum is permanently lower. That flexibility helps if your income changes or other expenses come up.
- You plan to stay in the home. The interest you save compounds over the remaining years of the loan. The longer you hold the mortgage, the more those savings add up.
- You are comparing it to other uses for the cash. Paying down a 6.5% mortgage gives you a guaranteed, tax-free 6.5% return. That is hard to beat without taking on risk elsewhere.
Which Mortgages Qualify for Recasting?
Mortgage recasting is available on conventional conforming loans backed by Fannie Mae or Freddie Mac. This covers both 30-year and 15-year fixed-rate mortgages, along with adjustable-rate mortgages (ARMs). Most major lenders and servicers offer recasting as a standard service for qualifying conventional loans. That includes Chase, Wells Fargo, Bank of America, U.S. Bank, PennyMac, and Navy Federal Credit Union.
Government-backed loans are not eligible for recasting. This means FHA loans, VA loans, and USDA loans. These loan types are pooled under federal programs that do not allow re-amortization. If you have an FHA loan with mortgage insurance (MIP), the path to restructuring your payment is a refinance into a conventional loan once you hit 20% equity.
Jumbo loans (those above conforming loan limits) depend on the lender. Some portfolio lenders allow recasting on jumbo loans they hold on their own books. Others do not. Check with your servicer.
3How to Use This Calculator
Enter your current loan balance, interest rate, remaining term in months, and the lump sum you are considering. The calculator updates in real time and shows:
- Your new monthly payment after the recast
- Total lifetime interest saved by reducing your principal now
- A side-by-side amortization chart showing your original vs. recast balance over time
- A comparison table with month-by-month details
All calculations run locally in your browser. No mortgage data gets sent to a server. Adjust the sliders to test different lump sum amounts and see how each one changes your monthly payment and total interest.
Related Tools
Mortgage Recast Frequently Asked Questions
Everything you need to know about mortgage recasting and principal lump sums.
1How much does LoanDepot charge for a mortgage recast?
LoanDepot typically charges a one-time administrative processing fee of $250 to recast a conventional mortgage. This fee is paid directly to the bank when processing the request.
2What is the minimum lump-sum payment required by LoanDepot?
LoanDepot requires a minimum principal reduction payment of $5,000 to qualify for a mortgage recast. Large payments must be explicitly marked for principal paydown.
3How do I submit a recast request to LoanDepot?
Contact LoanDepot servicing at 1-888-983-3240. Request information about their mortgage recast program. Submit your lump-sum principal payment, then complete and return the recast agreement form they provide. Once submitted, LoanDepot will compile your recast agreement for signature.
4Can I recast an FHA or VA loan with LoanDepot?
No. LoanDepot only allows recasting on conventional conforming fixed-rate or ARM mortgages. FHA, VA, and USDA government-backed loans are strictly ineligible due to federal pooling restrictions.
5What is a Mortgage Recast?
A mortgage recast allows you to make a lump-sum principal payment toward your existing mortgage, after which your lender recalculates (re-amortizes) your remaining balance over the original remaining term. This lowers your required monthly mortgage payment without changing your interest rate.
6How is Recasting different from Refinancing?
Refinancing replaces your old mortgage with a brand new loan at current market interest rates, incurring full closing costs (2%–4%). Recasting keeps your existing mortgage and its exact interest rate intact, usually requiring only a small administrative fee ($150–$500) from your lender.
7Does a Recast reduce my interest rate?
No. A recast preserves your existing interest rate exactly. However, because you are paying down a large chunk of principal upfront, your lifetime interest cost is drastically reduced because there is less principal compounding interest over time.
8Does a Recast shorten my loan term?
No. A recast keeps your exact remaining loan term. Because the lower principal balance is spread over the same remaining timeframe, your required monthly payment drops significantly. If you want to shorten your term, you can continue making your old higher monthly payment.
9How is Recasting different from making standard extra principal payments?
When you make standard extra principal payments, your loan balance drops and you pay off the loan faster, but your required monthly payment remains exactly the same. A recast adjusts the amortization schedule so your required monthly payment permanently decreases, improving your monthly cash flow.
10What are the requirements to qualify for a Recast?
Most lenders require a minimum lump-sum payment (typically $5,000 or 10% of the loan balance), a pristine payment history, and a qualifying loan type (conventional Fannie Mae/Freddie Mac loans generally allow recasting, while FHA and VA loans typically do not).
11How much does it cost to recast a mortgage?
Lenders typically charge a one-time administrative fee between $250 and $500 to process a mortgage recast. There are no appraisal, title, or escrow costs associated with a recast, making it a very inexpensive way to lower your payments compared to a refinance.
12Can I request a recast at any time?
Most servicers require that your mortgage has been active for at least 12 months before they will approve a recast, and you must have a history of on-time payments. It is always recommended to contact your specific lender beforehand to confirm their individual requirements and processing times.
13How many times can you recast a mortgage?
Most loan servicers allow you to recast your mortgage multiple times over the life of the loan, though some may impose a waiting period (typically 12 months) between requests. There is no legal limit to how many times you can recast conventional Fannie Mae or Freddie Mac loans.
14Is a mortgage recast better than making extra principal payments?
A recast is better if your primary goal is lower monthly overhead and improved cash flow, as it permanently recalculates and reduces your required payment. Making extra principal payments without recasting saves the same amount of interest and pays off the loan faster, but keeps your monthly payment exactly the same.
15How do major lenders like Chase, Wells Fargo, or Bank of America handle recasting?
Most major lenders (including Chase, Wells Fargo, Bank of America, U.S. Bank, and PennyMac) support mortgage recasting for conventional loans. While specific requirements vary by servicer, they generally require a minimum lump-sum principal payment (typically $5,000 or 10% of the remaining balance), a clean payment history (with the loan active for at least 12 months), and charge a one-time administrative fee ranging from $150 to $250. FHA, VA, and USDA loans are generally ineligible for recasting due to government backing rules.
16Can you recast a 15-year fixed mortgage, or is it only for 30-year loans?
You can recast any standard fixed-rate conventional mortgage, including both 15-year and 30-year fixed terms. The recasting process and calculations are identical: your lump-sum payment is applied directly to the principal balance, and your lender re-amortizes the remaining balance over the remaining months of your original 15-year or 30-year term, permanently lowering your required monthly payment.