Because FHA, VA, and USDA loans are statutorily ineligible for recasting under HUD/VA rules, calculate how a lump-sum curtailment shortens your payoff timeline by years.
Official Bank Recast Rules
Customize Your Numbers LiveUpdates KPIs & Printable Document Preview Instantly
1-Tap Presets:
Monthly Payment Drop
$315.49/mo
New P&I: $2,208.43 (vs $2,523.92)
Lifetime Interest Saved
$56,004.64
Net after fee: $55,754.64
Saved vs. Refinancing
$4,750.00
Fee: $250 vs $5,000 refi
Savings Rate to Beat
8.12%
PennyMac Loan Services, LLC recast rules
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Official Fannie Mae F-1-05 Recast & PMI Cancellation Packet (PennyMac Loan Services, LLC)
Personalized F-1-05 curtailment directive for $50,000 on $400,000 balance -> Drops payment by $315.49/mo
100% Instant Refund Guarantee: 1-click full refund within 14 days if your plan changes.Verified Methodology: Fannie Mae Servicing Guide F-1-05 & CFPB TILA Regulation Z
Your Monthly Payment Drop & Total Interest SavedLifetime Interest Saved: $56,004.64
Recast P&I: $2,208.43/moMonthly Relief: -$315.49/moSavings Rate to Beat: 8.12%
Tap chart to preview Month 1 Payment Drop & Bank Recast Letter PDF ▾Free Peek
3 Homeowner Mistakes That Can Cost You $315.49/mo in Payment ReliefOfficial Lender Recast & PMI Rules
Mistake #1: Paying Extra Online Without Requesting a Recast
Paying $50,000 via your lender's regular "Extra Principal" box shortens your payoff by 7.4 yrs but lowers your required next-month bill by $0.00/mo (stays at $2,523.92/mo).
Mistake #2: Missing Your Lender's Minimum Lump-Sum Rule
Verified Baseline Answer • Fannie Mae Servicing Guide F-1-05 & CFPB TILA Reg Z
Markdown (.md) ↗
Under Fannie Mae Servicing Guide F-1-05 & CFPB TILA Reg Z, applying a $50,000 lump-sum principal recast to a $400,000 mortgage at 6.25% with PennyMac Loan Services, LLC reduces your required monthly P&I payment by $315.49/mo (from $2,523.92 to $2,208.43) and saves $56,004.64 in lifetime interest using M = P[r(1+r)^n]/[(1+r)^n-1] over 336 remaining months.
Major US Mortgage Servicer Recast Fee, Minimum Lump-Sum & F-1-05 Seasoning Benchmark Table
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)
Verified Methodology Q&A
Frequently Asked Questions: FHA & VA Loan Recast Alternative Calculator
How much does a $50,000 mortgage recast lower my monthly payment on a $400,000 loan at 6.25%?
Applying a $50,000 principal curtailment and formal re-amortization on a $400,000 balance at 6.25% over 336 remaining months lowers your required monthly P&I payment by $315.49/mo (dropping from $2,523.92 to $2,208.43) while saving $56,004.64 in cumulative interest.
What is the PennyMac Loan Services, LLC mortgage recast fee and minimum lump-sum requirement?
Under Fannie Mae Servicing Guide F-1-05, PennyMac Loan Services, LLC 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).
Is it better to recast a mortgage or make extra principal payments without recasting?
Extra principal payments alone shorten your payoff date but leave your required monthly obligation unchanged at $2,523.92. A formal mortgage recast re-indexes the remaining principal (350,000 USD) across your remaining 336-month term, legally reducing your mandatory monthly payment to $2,208.43.
IMPORTANT HOMEOWNER TIP: REQUEST YOUR RECAST BEFORE PAYING ONLINE
Arbitrage & Fee Savings Benchmark
Don't Just Pay Extra Online: Lock In Your -$315.49/mo Lower Monthly Payment ($55,755 Total Interest Saved)
1. Avoid the Online Payment Mistake: Sending $50,000 through PennyMac'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 74.4% (canceling PMI at 80% LTV saves an extra +$226.67/mo). Every day your cash sits waiting costs about $8.56/day ($256.80/mo) in mortgage interest.
