How to Request a Mortgage Recast (With Sample Letter)

Key takeaways

Call your servicer first to confirm eligibility, the fee, the minimum lump sum, and the order of steps.
Ask for the recast in writing. An extra principal payment on its own won't lower your payment.
Keep paying your current amount until the new payment is confirmed. The process typically takes 45–60 days.

Requesting a mortgage recast is usually simple: a phone call, a form, a lump-sum payment, and a short wait. But servicers handle it differently, and small mistakes, like sending the money without the right instructions, can mean your payment goes toward principal without the recast ever happening. Here's how to do it step by step, with a sample letter you can adapt.

Before you start: check that it's worth it

Run your numbers through the recast calculator first. You'll want to know roughly what your new payment should be, so you can check the servicer's figure later, and whether the fee is worth paying for the size of lump sum you have in mind. If you're unsure, our guide to whether a recast is worth it walks through the trade-offs.

Also gather:

Your loan number (on your monthly statement)
Your current principal balance, interest rate, and remaining term
The amount you plan to pay, and where the money is coming from, so it's ready when you need it

Step 1: Call your loan servicer

Your servicer is the company you send payments to. It may not be the lender that originally made your loan. Ask:

Is my loan eligible for a recast? Conventional loans usually are, if the servicer offers recasting. FHA, VA, and USDA loans generally aren't.
What is the minimum lump sum? It's often $5,000 to $10,000, but some servicers set it as a percentage of the balance.
What is the fee? Fees typically run about $150 to $500.
Do I need to make the payment first, or send a request first? The order matters at some servicers.
How should I send the money? Wire, certified check, or an online one-time payment, and what reference to include.
Are there other requirements? For example, a record of on-time payments, the loan being current, or a waiting period after closing.
How long will it take, and when will my first new payment be due?

Write down the date, the name of the person you spoke with, and what they told you. Ask them to email or mail the recast instructions or form if they have one.

Step 2: Submit the request in writing

Many servicers have their own recast request form, sometimes in your online account. If yours does, use it. If not, send a short letter (there's a sample below). Either way, the written request should clearly say that you want the loan re-amortized after the principal payment, not just that you're paying extra.

This is the step people most often skip. An extra principal payment on its own lowers your balance but leaves your monthly payment exactly where it is. The recast only happens if you ask for it.

Step 3: Make the lump-sum payment

Send the money the way your servicer told you to, and label it as a principal reduction with your loan number. If you pay online, look for a "principal only" or "additional principal" option rather than paying it as a regular payment, which could be applied to future months' payments instead.

Pay the recast fee the way the servicer asks. Some take it with the lump sum, others bill it separately.

Step 4: Keep making your current payment

Don't switch to the lower payment on your own. Keep paying your current amount until the servicer confirms the new payment in writing. The whole process typically takes about 45 to 60 days. If you have autopay set up, leave it alone until then.

Any payment above the new amount during the transition isn't lost. It reduces your principal.

Step 5: Sign the paperwork and check the numbers

Some servicers send a short recast agreement or loan modification for you to sign. Read it before you sign. Your interest rate and maturity date should be unchanged. Only the balance and the principal-and-interest payment should be different.

When the new payment shows up, compare it with the calculator. Small differences are normal (the servicer uses the exact balance on the day it re-amortizes), but if it's off by more than a few dollars, ask how they calculated it. Also check that your escrow amount for taxes and insurance hasn't changed unexpectedly. A recast doesn't affect escrow.

Sample recast request letter

Use this as a starting point and replace the bracketed parts. If your servicer has its own form, use that instead.

[Your name]
[Property address]
[Phone] · [Email]

[Date]

[Servicer name]
[Servicer address, or the address for written correspondence on your statement]

Re: Request to recast loan number [loan number]

To whom it may concern,

I am requesting a recast (re-amortization) of the mortgage loan referenced above. On [date], I [sent / will send] a principal reduction payment of $[amount] by [wire / certified check / online payment, confirmation number].

Please apply this payment to principal and then re-amortize the loan over the remaining term at the current interest rate, so that my monthly principal and interest payment is reduced. I understand there is a recast fee of $[fee], which [is enclosed / I have paid / I authorize you to collect].

Please send written confirmation of the new principal balance, the new monthly payment, and the date the new payment takes effect. If any further documents are needed, I can be reached at the phone number or email above.

Thank you,
[Signature]
[Printed name(s) of all borrowers]

If more than one person is on the loan, servicers often want every borrower to sign. Keep a copy, and send it in a way you can track.

Common problems and how to avoid them

The money was applied, but no recast happened. This usually means the request wasn't submitted or wasn't linked to the payment. Call, reference your letter and payment date, and ask them to process the recast.
The payment was applied as future monthly payments. Ask the servicer to reapply it to principal. Labeling it clearly up front avoids this.
The lump sum was under the minimum. It still reduces your balance, but you may need to send more before they'll recast.
Your loan isn't eligible. You can still pay down principal. Your payment won't drop, but you'll pay the loan off sooner and save more interest. See recasting vs. extra payments, or consider whether a refinance fits better.

Frequently asked questions

Can I request a recast online?

Some servicers let you start the request in your online account. Others need a signed form or letter. Ask when you call.

Does my lender have to approve a recast?

Yes. Recasting is something servicers choose to offer, not a legal right, so it's at their discretion and under their rules.

Will a recast change my escrow?

No. A recast changes only the principal and interest part of your payment. Your escrow for taxes and insurance is reviewed separately.

Can I keep paying my old amount after recasting?

Yes. Anything above the required payment goes to principal and shortens the loan. Recasting just lowers the amount you're required to pay.