Bought a new house before your old home sold? Calculate how much a $150,000 lump-sum mortgage recast drops your required monthly payment while keeping your current rate.
Under Fannie Mae Servicing Guide F-1-05 & CFPB TILA Reg Z, applying a $150,000 lump-sum principal recast to a $550,000 mortgage at 6.625% with JPMorgan Chase Bank, N.A. reduces your required monthly P&I payment by $965.65/mo (from $3,540.71 to $2,575.06) and saves $191,840.10 in lifetime interest using M = P[r(1+r)^n]/[(1+r)^n-1] over 354 remaining months.
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“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 $150,000 principal curtailment and formal re-amortization on a $550,000 balance at 6.625% over 354 remaining months lowers your required monthly P&I payment by $965.65/mo (dropping from $3,540.71 to $2,575.06) while saving $191,840.10 in cumulative interest.
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 6.625% 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 $3,540.71. A formal mortgage recast re-indexes the remaining principal (400,000 USD) across your remaining 354-month term, legally reducing your mandatory monthly payment to $2,575.06.
1. Avoid the Online Payment Mistake: Sending $150,000 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 $5,000 Minimum Met • $0 Fee). 3. Early PMI Removal & Daily Interest Cost: Your lump sum brings your loan-to-value from 80.9% to 58.8% (20%+ equity), which lets you cancel monthly PMI at the same time for an extra +$311.67/mo in savings ($1,277.32/mo total relief). Every day your cash sits waiting costs about $27.23/day ($816.90/mo) in mortgage interest.
