Mortgage WellMortgage recast cost calculator
A recast's headline cost is the servicer fee. The hidden cost is the minimum lump sum — and the alternative use of those dollars. Here's the breakdown.
Common fee ranges
Recast fees are typically a flat amount in the low-to-mid hundreds. Common ranges we see referenced in consumer guidance and servicer documentation are $150–$500, though some servicers go higher and a few waive the fee entirely on certain programs. These are illustrative ranges, not promises — your servicer's actual fee schedule is the authoritative source.
Minimum principal reduction
Most servicers require a minimum lump-sum principal reduction before they'll process a recast. Common floors are $5,000–$10,000 or roughly 10% of the principal balance, whichever is greater. Below that, your payment goes toward principal but the loan isn't re-amortized — you get faster payoff instead of a lower required payment.
How recast costs compare to refinance closing costs
| Cost item | Recast | Refinance |
|---|---|---|
| Servicer / origination fee | $150–$500 flat | 0.5%–1% of loan amount |
| Appraisal | None | $400–$800+ |
| Title work / lender title insurance | None | $500–$2,000+ |
| Recording / government fees | Usually none | Varies by state/county |
| Discount points (optional) | None | 1% of loan per point |
| Total typical out-of-pocket | $150–$500 | $3,000–$10,000+ |
No-closing-cost refinance comparison
A "no-closing-cost" refinance doesn't actually eliminate costs — it rolls them into the new loan principal or the new rate. The refinance still costs $3,000–$10,000+, you just pay it over time rather than at the closing table. A recast is genuinely cheap because there's no new loan to absorb those costs in the first place.
Modeling the trade-off
Open the Recast Calculator and enter your current balance, rate, remaining term, and the lump sum you're considering. The fee is shown but not added to principal — most servicers collect it separately. Compare the new payment, lifetime interest, and the "keep old payment" scenario to see which strategy fits your goal.
Frequently asked
- Is the recast fee tax-deductible?
- Recast fees are generally not deductible as mortgage interest. Talk to a tax professional for your specific situation.
- Can the recast fee be rolled into the loan?
- Servicers typically collect the fee separately at the time of recast rather than rolling it into principal. Confirm with your servicer.
- Why do some servicers waive the recast fee?
- A few jumbo or relationship-pricing programs waive the fee as a customer-retention feature. Ask your servicer if your loan qualifies.
Sources and references
Helpful consumer references used to explain assumptions on this page. These are educational pointers, not regulatory endorsement.
- CFPB — closing costs and refinance fees — consumer reference for what's included in refinance closing costs (recast costs are much narrower)