Mortgage Recast Policies by Lender
Whether you can recast — and what it costs — depends on who services your loan. Below are the recast fees, minimum lump sums, and eligibility notes we could find for major US servicers, with each figure's confidence labeled. Last verified: July 2026.
Fees, minimums, seasoning, and eligibility change and vary by loan, investor, and state. These are reported ranges for planning — not quotes. Always confirm the current terms with your own servicer before making a payment.
| Lender | Offers recast? | Reported fee | Reported minimum |
|---|---|---|---|
| Chase | Yes | Reported as $0 | No fixed minimum stated, though a small paydown won't move t |
| Wells Fargo | Yes | Reported fee-free on Wells Fargo educational content | $20,000 minimum principal payment cited on Wells Fargo's own |
| Bank of America | Yes | Reported fee-free | $5,000 in principal curtailments over the prior ~6 months |
| Rocket Mortgage | Yes | Commonly cited up to $250 | At least $10,000 in principal reduction since closing or you |
| Mr. Cooper (Nationstar) | Yes | Up to $250, non-refundable | $10,000 minimum principal payment |
| PennyMac | Yes | $250 | $10,000 minimum lump-sum principal payment |
| U.S. Bank | Yes | A recast/modification fee appears on U | Not published; the industry-typical ~$10,000 likely applies |
| Citizens | Yes | $150 recast processing fee | $5,000 minimum lump-sum principal paydown |
| Newrez | Yes | $250 to cover administrative costs | $10,000 OR 10% of the unpaid balance, whichever is greater |
| Freedom Mortgage | Case by case | Not published as a figure; Freedom says recasting "typically | Not published; investor/loan-dependent |
The general rules (industry norms)
- Fee: $0–$500 (most commonly $150–$250; a few large banks are reported fee-free).
- Minimum lump sum: usually $5,000–$10,000 in principal (some use ~10% of the balance).
- Seasoning: typically 2–6 on-time payments before you can recast.
- Processing: about 30–60 days end to end.
- Frequency: no universal limit, but many servicers cap frequency (e.g., once per 12 months).
- Request first: most servicers require you to submit the recast request/form before or with the lump sum — an unsolicited large principal payment is not automatically a recast.
Government loans (FHA, VA, USDA) generally cannot be recast; conventional loans usually can. See any lender above for details, learn the mechanics in what is a mortgage recast, and run your numbers in the recast calculator.