RecastWise

PennyMac Mortgage Recast: Fee, Minimum & How to Request

Last verified July 2026 · Officially published by the lender

Offers recastingYes, on eligible loans
Reported fee$250 (officially published in PennyMac's FAQ; paid with the principal payment).
Reported minimum$10,000 minimum lump-sum principal payment (officially published).
Servicing phone800-777-4001

These figures are reported for planning and can change at any time. PennyMac's written recast agreement is what binds — confirm the current fee, minimum, seasoning, and your loan's eligibility with PennyMac before sending any payment.

What to know about a PennyMac recast

Re-amortizes the reduced balance over the remaining term at the same rate. Government-backed loans generally not eligible (investor-dependent). Confirm your loan's eligibility with PennyMac.

Is your loan eligible?

  • Conventional (Fannie Mae / Freddie Mac) loans are usually eligible, subject to your servicer and investor.
  • FHA, VA and USDA government loans generally cannot be recast (re-amortization only happens inside a loss-mitigation modification, which is a different process).
  • Jumbo and portfolio loans vary case by case — only the servicer/investor can confirm.
  • Interest-only loans, Option ARMs and commercial loans are typically ineligible.

How to request a recast

  1. Confirm your loan is current and past any seasoning period (often 2–6 on-time payments).
  2. Contact PennyMac (800-777-4001) and ask for their recast/re-amortization form — most servicers require the request before or with the lump sum, so an unsolicited principal payment won't automatically recast the loan.
  3. Make the qualifying lump-sum payment and pay any recast fee as directed.
  4. Allow roughly 30–60 days for the new, lower payment to take effect.

See your new payment

Estimate exactly how much a lump sum would lower your payment — and whether recasting, extra principal, or refinancing costs least — in the recast calculator. New to recasting? Start with what is a mortgage recast, or compare other servicers on the lender policies page.

Frequently asked questions

Does PennyMac offer mortgage recasting?

Yes — PennyMac is reported to offer recasting on eligible loans. Re-amortizes the reduced balance over the remaining term at the same rate. Government-backed loans generally not eligible (investor-dependent). Confirm your loan's eligibility with PennyMac.

How much does a PennyMac recast cost?

$250 (officially published in PennyMac's FAQ; paid with the principal payment). (Officially published by the lender.) Recast fees industry-wide are commonly $150–$500, and a few large banks are reported fee-free. Confirm the current fee directly with PennyMac.

What is the minimum lump sum for a PennyMac recast?

$10,000 minimum lump-sum principal payment (officially published). Minimums industry-wide are usually $5,000–$10,000, sometimes about 10% of the balance. Confirm with your servicer.