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Mortgage Glossary

Mortgage Recast

Mike Starr·Reviewed August 2026

A mortgage recast (or re-amortization) is when a borrower makes a large lump-sum payment toward the principal and asks the lender to recalculate (recast) the remaining monthly payments based on the new lower balance and original loan term. The result is a lower monthly payment without refinancing. Not all lenders offer recasting, and a small fee is usually charged.