Calculate the exact monthly payment drop, interest saved, and PennyMac servicer rules for a $30,000 lump-sum recast on a $500,000 mortgage at 6.25%. Compare recasting vs refinancing.
Under Fannie Mae Servicing Guide F-1-05 & CFPB TILA Reg Z, applying a $30,000 lump-sum principal recast to a $500,000 mortgage at 6.25% with PennyMac Loan Services, LLC reduces your required monthly P&I payment by $189.29/mo (from $3,154.90 to $2,965.61) and saves $33,601.44 in lifetime interest using M = P[r(1+r)^n]/[(1+r)^n-1] over 336 remaining months.
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 | $5,000 or 10% of principal | 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 | $5,000 | Yes (Conforming conventional) | Excluded (FHA/VA prohibited) |
| Citibank (Citi) | $250 | $5,000 | Yes (Conforming conventional) | Excluded (FHA/VA prohibited) |
Applying a $30,000 principal curtailment and formal re-amortization on a $500,000 balance at 6.25% over 336 remaining months lowers your required monthly P&I payment by $189.29/mo (dropping from $3,154.90 to $2,965.61) while saving $33,601.44 in cumulative interest.
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, Wells Fargo, PennyMac, U.S. Bank, Citi) to $10,000 (Rocket Mortgage, Mr. Cooper).
Extra principal payments alone shorten your payoff date but leave your required monthly obligation unchanged at $3,154.90. A formal mortgage recast re-indexes the remaining principal (470,000 USD) across your remaining 336-month term, legally reducing your mandatory monthly payment to $2,965.61.
Recasting with PennyMac Loan Services, LLC ($250 fee) lowers your mandatory contractual payment from $3,154.90/mo to $2,965.61/mo. Pro Hybrid Strategy: Execute the F-1-05 recast first to lock the -$189.29/mo safety floor, then voluntarily pay $3,154.90/mo in strong cash-flow months to retire the loan 48 months early and save $121,679 in total interest.
