In one sentence
Re-amortizing a loan over a new schedule, often after a principal paydown, without originating a new loan.
The longer version
A recast keeps the existing loan but recalculates payments on a new balance or schedule, commonly after a lump-sum paydown lowers the principal. It is lighter than a refinance because the loan itself survives.
Recasts are documented modifications, tracked and boarded like other term changes so servicing reflects the new payment math.
Common questions
- What is a loan recast?
- Re-amortizing the remaining balance over a new schedule, typically after a principal paydown, which lowers future payments without originating a new loan.
- Is a recast the same as a refinance?
- No. A recast keeps the existing loan, rate and maturity and only resets the payment schedule. A refinance replaces the loan.
- Does a recast require documentation?
- Usually a short modification or amendment and an updated amortization schedule, and the servicer must board the new payment terms.
Keep reading