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After selling, compare a recast before replacing the new mortgage

Eric's September 30, 2026 short suggests checking recast eligibility before refinancing after a home sale. That is a useful comparison, particularly when you want to keep the terms of your existing mortgage.

By Eric Hamilton · Published October 6, 2026

Originally uploaded September 30, 2026 · 0:39 · Watch on YouTube

Written companion added October 6, 2026. Adapted from Eric’s video captions with source checks; not a word for word transcript. The recording retains its original date.

Confirm what your servicer permits

An approved recast can recalculate principal and interest after a substantial principal payment using the existing interest rate and remaining term. Ask about eligibility, minimum payment, fee and effective date. The video's $500 illustration is not a universal charge, and sending a lump sum does not automatically reduce the required payment.

Compare the same goal and cash amount

Put the recast beside a refinance and simply retaining the loan. Compare upfront costs, payment, remaining payoff period and cash left afterward. Refinancing may change the rate or term, so a lower payment alone does not establish which choice costs less or better fits your goal.

Does recasting replace my mortgage rate?

A standard recast keeps the existing rate and remaining term. Confirm the actual arrangement with your servicer before committing cash.

Sources and scope

Recast availability and terms vary by loan, investor and servicer. The recording's title is not a recommendation that recasting always beats refinancing.

  1. Fannie Mae: Principal curtailment and reamortization Accessed October 6, 2026
  2. CFPB: Should I refinance? Accessed October 6, 2026

General education, not a loan quote, approval or an individual recommendation. Ask the appropriate professional about your situation.

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