Calculate your Jumbo mortgage recast monthly payment drop, verify the 10% unpaid balance minimum requirement, and model the $750k IRS Schedule A interest cap.
Official Bank Recast Rules
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Monthly Payment Drop
$776.42/mo
New P&I: $5,370.23 (vs $6,146.65)
Lifetime Interest Saved
$140,877.12
Net after fee: $140,877.12
Saved vs. Refinancing
$5,000.00
Fee: $0 vs $5,000 refi
Savings Rate to Beat
9.29%
JPMorgan Chase Bank, N.A. recast rules
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Official Fannie Mae F-1-05 Recast & PMI Cancellation Packet (JPMorgan Chase Bank, N.A.)
Personalized F-1-05 curtailment directive for $120,000 on $950,000 balance -> Drops payment by $776.42/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: $140,877.12
Recast P&I: $5,370.23/moMonthly Relief: -$776.42/moSavings Rate to Beat: 9.29%
Tap chart to preview Month 1 Payment Drop & Bank Recast Letter PDF ▾Free Peek
3 Homeowner Mistakes That Can Cost You $776.42/mo in Payment ReliefOfficial Lender Recast & PMI Rules
Mistake #1: Paying Extra Online Without Requesting a Recast
Paying $120,000 via your lender's regular "Extra Principal" box shortens your payoff by 7.7 yrs but lowers your required next-month bill by $0.00/mo (stays at $6,146.65/mo).
Mistake #2: Missing Your Lender's Minimum Lump-Sum Rule
Lender Minimum (JPMorgan Chase Bank, N.A.): Requires $5,000 minimum lump sum (ELIGIBLE). High-Balance Note: $950,000 is above the $750,000 mortgage interest tax deduction limit.
Mistake #3: Forgetting to Cancel Monthly PMI at 20% Equity
Your loan-to-value drops from 85.0% to 74.3% (20%+ equity) -> Saves an extra +$515/mo by canceling monthly PMI ($1,291.42/mo total payment drop).
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 $120,000 lump-sum principal recast to a $950,000 mortgage at 6.5% with JPMorgan Chase Bank, N.A. reduces your required monthly P&I payment by $776.42/mo (from $6,146.65 to $5,370.23) and saves $140,877.12 in lifetime interest using M = P[r(1+r)^n]/[(1+r)^n-1] over 336 remaining months.
How much does a $120,000 mortgage recast lower my monthly payment on a $950,000 loan at 6.5%?
Applying a $120,000 principal curtailment and formal re-amortization on a $950,000 balance at 6.5% over 336 remaining months lowers your required monthly P&I payment by $776.42/mo (dropping from $6,146.65 to $5,370.23) while saving $140,877.12 in cumulative interest.
What is the JPMorgan Chase Bank, N.A. mortgage recast fee and minimum lump-sum requirement?
Under Fannie Mae Servicing Guide F-1-05, JPMorgan Chase Bank, N.A. charges a $0 administrative recast fee with no credit check, no home appraisal, and no change to your 6.5% 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 $6,146.65. A formal mortgage recast re-indexes the remaining principal (830,000 USD) across your remaining 336-month term, legally reducing your mandatory monthly payment to $5,370.23.
IMPORTANT HOMEOWNER TIP: REQUEST YOUR RECAST BEFORE PAYING ONLINE
Arbitrage & Fee Savings Benchmark
Don't Just Pay Extra Online: Lock In Your -$1,314.75/mo Lower Monthly Payment ($140,877 Total Interest Saved)
1. Avoid the Online Payment Mistake: Sending $120,000 through JPMorgan Chase'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: ELIGIBLE (JPMorgan Chase $95,000 Minimum Met • $0 Fee). 3. Early PMI Removal & Daily Interest Cost: Your lump sum brings your loan-to-value from 85.0% to 74.3% (20%+ equity), which lets you cancel monthly PMI at the same time for an extra +$538.33/mo in savings ($1,314.75/mo total relief). Every day your cash sits waiting costs about $21.37/day ($641.10/mo) in mortgage interest.
