MortgagesHomebuying Glossary
Mortgage Recast
Paying a lump sum toward your principal so the lender recalculates a lower monthly payment.
In plain English
A recast lets you make a large one-time payment toward your loan balance, after which your lender re-amortizes the remaining balance over your existing term — lowering your monthly payment without changing your rate or needing to refinance.
Why it matters
A recast is often cheaper and simpler than refinancing if your goal is just a lower payment after receiving a windfall like a bonus or inheritance.
Where you'll run into it
Guides and tools on TheBuyingPath that cover mortgage recast in context.
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