How Much Does a Mortgage Recast Cost? Fees by Lender (2026)
Quick answer: Most major US lenders charge $150–$500 for a mortgage recast as of 2026. Chase: $150. Wells Fargo: $250. Bank of America: $250. US Bank: $250. Rocket Mortgage: $250. The fee is paid once, regardless of lump sum size. Some smaller lenders and credit unions charge nothing; some charge up to $500. The recast fee is rarely the deciding factor; the bigger question is whether to recast at all (vs. refinance or extra payments).
What you’re paying for
The recast fee covers the lender’s operational cost of:
- Reviewing your recast request and verifying eligibility
- Applying the lump sum to principal as a one-time event (separate from regular payment posting)
- Re-amortizing the loan and generating a new payment schedule
- Updating their internal systems and your account
- Sending you the new payment notice
It’s a flat fee, not a percentage. A $5,000 lump sum recast costs the same as an $80,000 lump sum recast.
There are no closing costs, appraisals, or third-party fees. That’s the whole point of recasting vs. refinancing.
Fees at the major US lenders (2026)
| Lender | Recast Fee | Notes |
|---|---|---|
| Chase | $150 | Lowest among big four |
| Wells Fargo | $250 | Standard |
| Bank of America | $250 | Standard |
| US Bank | $250 | Standard |
| Citi | $250–$500 | Varies by loan vintage |
| Rocket Mortgage | $250 | Conventional loans only |
| PNC | $250 | Standard |
| Truist | $250 | Standard |
| Fifth Third Bank | $300 | Slightly above market |
| Regions Bank | $250 | Standard |
| Flagstar | $300 | Slightly above market |
| Mr. Cooper | $250 | Servicer for many third-party loans |
| LoanDepot | $250 | Conventional only |
| Caliber Home Loans (Newrez) | $250 | Standard |
| Navy Federal Credit Union | $0 | No fee for members |
| PenFed Credit Union | $0 | No fee for members |
| Local credit unions | $0–$250 | Highly variable |
These fees are typical as of session date. Verify the current fee with your specific servicer before requesting a recast, since fees can change with little notice.
How the fee changes the math
Use this rule of thumb: the recast fee should pay for itself in less than 12 months of monthly savings.
Example: $400K balance, 6.5%, 25 years remaining, $80K lump sum, $250 fee.
- Old monthly principal and interest payment: $2,701
- New monthly principal and interest payment: $2,161
- Monthly savings: $540
- Fee payback: $250 ÷ $540 = 0.46 months (less than 14 days)
In this scenario, the fee is trivial: it pays back in two weeks of the new payment schedule. Most recasts have similar dynamics.
When the fee math gets meaningful: small lump sum recasts. If you only have a $5,000 lump sum, the monthly payment drop is small (maybe $30/month) and a $500 fee may take 16+ months to recoup. At that point, just make the $5K extra payment without recasting.
Quick test before you pay any recast fee: divide the fee by your projected monthly savings. If the answer is less than 12, recasting is fine. If more than 12, just make the lump sum payment without recasting.
”Free recast” lenders: too good to be true?
A few lenders advertise free recasts:
- Navy Federal Credit Union: Truly free for members. Quality lender, broad eligibility.
- PenFed Credit Union: Free for members.
- Some local credit unions: Free, though quality varies.
- “Free recast” promotional offers from major banks: Usually time-limited or tied to specific loan products. Read the fine print.
A free recast doesn’t change the underlying decision. Recasting still has to make sense compared to alternatives (extra payment, refinance). Free just removes one variable.
Hidden costs to watch for
Beyond the explicit fee, three hidden costs can show up:
Lender-required wire fees. Some lenders require lump sums above $10K to be wired (not check or electronic bank transfer). Wire fees are $15–$30, paid to your bank.
Tax escrow recalculation. If the new monthly payment changes your escrow setup (because the principal/interest portion changed), some lenders recalculate the escrow and may require a one-time escrow adjustment. Usually small ($50–$200) and not really a “fee”, it’s just settling up.
Late fees during processing. If you accidentally underpay during the 30–60 day processing window because you assumed the new payment was already in effect, late fees compound. Don’t change your payment amount until you have the new amortization schedule in writing.
Negotiating the fee
Yes, you can sometimes negotiate the recast fee, especially if:
- You’re a long-term customer (5+ years with the lender)
- You’re applying a large lump sum (>$100K)
- You’ve had multiple loans or accounts with the bank
- You’re considering moving your business elsewhere
A polite, direct call to the loan servicing team works better than email. Ask: “I’m planning a recast. Is there any flexibility on the fee given my history with [bank]?” The worst case is they say no.
Fees vs. opportunity cost
The fee itself is rarely the most important number in the recast decision. What matters more:
- Is recasting better than just making the lump sum payment without recasting? (See our recast vs. extra payment guide, usually no.)
- Is recasting better than refinancing? (Depends on rate environment, see our recast vs. refinance guide.)
- What’s your actual goal: lower monthly payment, or faster payoff? They’re different goals with different right answers.
Spending 30 minutes on these three questions is worth 1,000x the energy of debating a $250 fee.
FAQ
Is the recast fee tax deductible? Generally no. Recast fees are considered loan administration costs, not interest, so they’re not deductible. Consult a tax professional for your specific situation.
Can the fee be rolled into the loan? No. The recast fee is paid out-of-pocket, separate from the loan balance. This is different from refinancing where closing costs can sometimes be rolled in.
What if I recast multiple times? Each recast typically charges a separate fee. Some lenders limit recasts to one per 12 months or one per loan lifetime. Confirm with your servicer before paying for the first recast if you might want to recast again later.
Do FHA, VA, or USDA loans charge recast fees? Generally moot. These loan types typically don’t allow recasting at all. See our FHA, VA, USDA recast guide.
Last updated: April 2026. Fee data synthesized from publicly available servicer disclosures and homeowner reports. Verify current fees with your specific lender before initiating a recast. RecastCalc is not a lender.
About the author: Ivan Stamenov is the founder of RecastCalc and operates Marcon Groupe LLC.