Calculate whether recasting a 6.25%-7.25% mortgage beats holding cash in a 4.50% HYSA or Treasury Bills after federal/state marginal tax drag and IRS Schedule A limits.
Fannie Mae F-1-05 Compliant
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1-Tap Presets:
Monthly Payment Drop
$331.61/mo
New P&I: $2,652.91 (vs $2,984.52)
Lifetime Interest Saved
$61,420.96
Net after fee: $61,420.96
Closing Cost Arbitrage
$5,000.00
Fee: $0 vs $5,000 refi
Break-Even Taxable Yield
8.88%
JPMorgan Chase Bank, N.A. F-1-05 protocol
Live Personalized Document Preview Ready
Official Fannie Mae F-1-05 Recast Request Letter (JPMorgan Chase Bank, N.A.)
Personalized curtailment directive for $50,000 on $450,000 balance -> Drops payment by $331.61/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
Tap chart to preview Month 1 F-1-05 Fee Audit & Recast PDF ▾Free Peek
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 $450,000 mortgage at 6.75% with JPMorgan Chase Bank, N.A. reduces your required monthly P&I payment by $331.61/mo (from $2,984.52 to $2,652.91) and saves $61,420.96 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
$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)
Verified Methodology Q&A
Frequently Asked Questions: Mortgage Recast vs HYSA / T-Bills
How much does a $50,000 mortgage recast lower my monthly payment on a $450,000 loan at 6.75%?
Applying a $50,000 principal curtailment and formal re-amortization on a $450,000 balance at 6.75% over 336 remaining months lowers your required monthly P&I payment by $331.61/mo (dropping from $2,984.52 to $2,652.91) while saving $61,420.96 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 6.75% 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).
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 $2,984.52. A formal mortgage recast re-indexes the remaining principal (400,000 USD) across your remaining 336-month term, legally reducing your mandatory monthly payment to $2,652.91.
Lock -$331.61/mo Required Payment Drop ($61,421 Saved) or Pay Off 7.2 Yrs Early ($206,845 Saved)
Recasting with JPMorgan Chase Bank, N.A. ($0 fee) lowers your mandatory contractual payment from $2,984.52/mo to $2,652.91/mo. Pro Hybrid Strategy: Execute the F-1-05 recast first to lock the -$331.61/mo safety floor, then voluntarily pay $2,984.52/mo in strong cash-flow months to retire the loan 86 months early and save $206,845 in total interest.
