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
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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 Rocket Mortgage, 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
$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: Rocket Mortgage vs Mr. Cooper Mortgage Recast Policy, Fee & Turnaround Comparison
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 Rocket Mortgage, LLC mortgage recast fee and minimum lump-sum requirement?
Under Fannie Mae Servicing Guide F-1-05, Rocket Mortgage, 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).
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.
Lock -$315.49/mo Required Payment Drop ($56,005 Saved) or Pay Off 7.4 Yrs Early ($175,630 Saved)
Recasting with Rocket Mortgage, LLC ($250 fee) lowers your mandatory contractual payment from $2,523.92/mo to $2,208.43/mo. Pro Hybrid Strategy: Execute the F-1-05 recast first to lock the -$315.49/mo safety floor, then voluntarily pay $2,523.92/mo in strong cash-flow months to retire the loan 89 months early and save $175,630 in total interest.
