Lower your monthly payment after a large principal reduction without refinancing. Typical $250–$500 fee, often $10,000 minimum, and about 2–4 weeks to process.
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Homeowner Solutions
Mortgage Recast
After a large principal payment, a recast re-amortizes your remaining balance so the monthly payment can drop — without refinancing, changing your rate, or opening a new loan. Investor and servicer rules vary, so Ryan and Steve confirm eligibility before anyone promises a date or a payment.
Sending extra principal reduces what you owe. It does not automatically change the billed monthly payment until a recast is approved and processed.
Your loan may be sold to an investor or retained for servicing. Recast rules follow that investor, not a one-size-fits-all checklist. Borrowers should generally be advised of the items below, then wait for confirmation on their specific loan.
Before a recast can be completed, some investors may require extra time after closing. That is another reason we set realistic expectations at the beginning of the process.
Both can lower a payment. They are not the same tool.
As a general expectation — not a guarantee — borrowers should be prepared for this sequence.
Step
On eligible agency loans, keeping servicing with Luminate Bank gives Ryan and Steve more control and visibility into the recast. That lets us coordinate with our servicing team instead of sending you to an unknown servicer to ask about a payment that has not updated yet.
Not every loan is retained, and not every retained loan is recast-eligible. We will tell you which situation you are in before you plan a principal payment around a new monthly bill.
Related guides if a recast is not the only option on the table.
Tell Ryan or Steve your loan type, balance, and how much principal you can apply. We will check investor and servicer rules before anyone counts on a new payment date.