Mortgage Recast

A mortgage recast—also called a loan recast—is a feature in some types of mortgages where the remaining payments are recalculated based on a new amortization schedule. During a mortgage recasting, the borrower pays a large sum toward their principal, and their mortgage is then recalculated based on the new balance. Some mortgages have a scheduled recast date, which is the date when the lender will calculate a new amortization schedule based on the mortgage’s remaining principal balance and term.