A mortgage recast is one of the least understood financial tools available to homeowners. Unlike refinancing, a recast keeps your original loan, rate and terms. You simply make a large lump-sum payment, and the lender recalculates your monthly payment based on the reduced principal.

For Staten Island and Brooklyn homeowners who want lower payments without touching their interest rate, a recast can be an overlooked option.

How a Recast Actually Works

• You make a lump-sum payment toward the loan principal.

• The lender recalculates your monthly payment based on the new balance.

• Your interest rate and remaining term stay the same.

• Most conventional loans allow recasts, but FHA and VA loans usually do not.

Benefits for NYC Buyers and Owners

• Lower monthly payments without refinancing costs.

• You keep a low interest rate you already secured.

• Useful after a large cash event, bonus, inheritance or sale of another property.

• Helpful for buyers who overbid and want to realign their payment with comfort level.

Common Restrictions

• Minimum lump-sum payment required (often 5,000 to 10,000 dollars).

• Not all lenders offer recasts.

• Closing documents must be reviewed to verify eligibility.

Recasts are one of the cleanest ways to correct a monthly payment without changing the entire loan structure.

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Joseph Ranola | Five-Star Staten Island & South Brooklyn Realtor® (30 + Google reviews)
Associate Broker · Matias Real Estate | Founder · Bridge & Boro Team
Serving 103xx and 11209 / 11214 / 11228 | $25 M + closed volume
📞 917-716-1496 | ranolarealestate.com