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Refinancing

Mortgage Recasting vs Refinancing

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

4 min readBy NexGen Capital Corp · NMLS 1766649Updated 2026Refinancing

Short answer

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

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.

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

Related mortgage option

Ready to apply this to a real loan? Review how Refinancing work in Florida, or estimate your monthly payment before you talk to an advisor.

Sources

Program rules change and individual lender overlays apply. Verify specifics with the agency or with a licensed NexGen Capital advisor before relying on them.

Reviewed by NexGen Capital Corp

Written and reviewed by the licensed mortgage team at NexGen Capital Corp, a Florida mortgage brokerage (NMLS #1766649). Verify our license on NMLS Consumer Access.

Last reviewed: 2026

This article is educational and is not a commitment to lend or an offer of credit. Speak with a licensed NexGen advisor about your own situation.

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