Standard FHA and VA mortgages do not allow formal recasting. Compare extra principal payoff timelines, streamline refinances, and conventional recast rules.
Under Fannie Mae Servicing Guide F-1-05 & CFPB TILA Reg Z, applying a $40,000 lump-sum principal recast to a $380,000 mortgage at 6.25% with Standard Fannie Mae / Freddie Mac Servicer reduces your required monthly P&I payment by $252.40/mo (from $2,397.73 to $2,145.33) and saves $44,806.40 in lifetime interest using M = P[r(1+r)^n]/[(1+r)^n-1] over 336 remaining months.
Instant download and full web access with zero monthly subscriptions. Pay once, keep forever.
Instant Fannie Mae F-1-05 servicer submission letter, 16-servicer audit, and PMI removal notice.
Complete Recast, PMI Removal & 360-Mo Excel Kit with 4-Tab formula workbook and servicer phone scripts.
“Submitted our Fannie Mae F-1-05 recast letter with a $60k lump sum. Monthly payment dropped by $384/mo with a $250 fee and zero credit pull.”
“Used the 360-month amortization workbook and F-1-05 escalation script when the first phone rep confused a recast with a refinance.”
“Kept our 3.25% rate and cut $412/mo off our required payment after selling our starter condo. Worth every cent of $9.”
Dispatches a free 1-page printable PDF summary and your personal restore link for this exact baseline.
| Loan Servicer | Recast Fee | Minimum Lump Sum | Conforming F-1-05 Eligible | FHA / VA Recast Policy |
|---|---|---|---|---|
| JPMorgan Chase | $0 | $5,000 | Yes (2+ consecutive payments) | Excluded (FHA/VA prohibited) |
| Wells Fargo | $250 | $10,000 (or 10% UPB) | Yes (Good standing required) | Excluded (FHA/VA prohibited) |
| Rocket Mortgage | $250 | $10,000 | Yes (Conventional Fannie/Freddie) | Excluded (FHA/VA prohibited) |
| Mr. Cooper | $250 | $10,000 | Yes (30-45 day processing) | Excluded (FHA/VA prohibited) |
| PennyMac | $250 | $5,000 | Yes (Written modification form) | Excluded (FHA/VA prohibited) |
| Bank of America | $0 | $5,000 | Yes (No credit check or appraisal) | Excluded (FHA/VA prohibited) |
| U.S. Bank | $250 | $10,000 (or 10% UPB) | Yes (Conforming conventional) | Excluded (FHA/VA prohibited) |
| Citibank (Citi) | $250 | $5,000 | Yes (Conforming conventional) | Excluded (FHA/VA prohibited) |
Applying a $40,000 principal curtailment and formal re-amortization on a $380,000 balance at 6.25% over 336 remaining months lowers your required monthly P&I payment by $252.40/mo (dropping from $2,397.73 to $2,145.33) while saving $44,806.40 in cumulative interest.
Under Fannie Mae Servicing Guide F-1-05, Standard Fannie Mae / Freddie Mac Servicer charges a $250 administrative recast fee with no credit check, no home appraisal, and no change to your 6.25% interest rate. Minimum lump-sum thresholds range from $5,000 (Chase, Bank of America, PennyMac, Citibank) to $10,000 or 10% UPB (Wells Fargo, Rocket Mortgage, Mr. Cooper, U.S. Bank).
Extra principal payments alone shorten your payoff date but leave your required monthly obligation unchanged at $2,397.73. A formal mortgage recast re-indexes the remaining principal (340,000 USD) across your remaining 336-month term, legally reducing your mandatory monthly payment to $2,145.33.
1. Avoid the Online Payment Mistake: Sending $40,000 through Fannie/Freddie Servicer's regular 'Extra Principal' button will NOT lower next month's required bill unless you open an official Recast Request first. 2. Lender Minimum Check: NOT ELIGIBLE FOR RECAST (FHA/VA/USDA Loans Cannot Recast - Use Direct Extra Payment Plan). 3. Early PMI Removal & Daily Interest Cost: Your lump sum moves your loan-to-value from 85.0% to 76.1% (canceling PMI at 80% LTV saves an extra +$215.33/mo). Every day your cash sits waiting costs about $6.85/day ($205.50/mo) in mortgage interest.
