Refinancing

Mortgage Recasting vs Refinancing

Two ways to lower your payment — and how to pick.

4 min readUpdated 2026Refinancing

Recasting

You pay a lump sum toward principal, and the lender re-amortizes the balance over the remaining term. Rate stays the same, closing costs are minimal, but you keep the original loan.

Refinancing

You get a new loan with new rate, term, and closing costs. More flexibility but more effort.

Key takeaways

  • Recast if the current rate is great and you have cash.
  • Refinance if the rate or term needs to change.

Frequently asked questions

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