Mortgage Recast by Lender: Chase, Wells Fargo, Rocket, Mr. Cooper

Recasting is widely available, but the details — eligibility, minimum lump sum, and the flat fee — depend on who services your loan and what type of loan you have. This guide gives a general, factual overview. Policies change frequently and servicing often transfers, so treat this as a starting point and always confirm with your current servicer. When you’re ready, estimate your new payment in the Mortgage Recast Calculator.

First, know who actually services your loan

The lender that originated your mortgage may not be the one that services it today. Your servicer — the company you send payments to — is who decides recast eligibility along with the loan’s investor. Loans are bought, sold, and transferred routinely, so check your most recent statement for the current servicer before assuming any policy applies to you.

Loan type usually decides eligibility

This matters more than the brand name:

• Conventional loans (Fannie Mae / Freddie Mac): Generally eligible for recasting.
• FHA, VA, and USDA loans: Generally not eligible for recasting.
• Jumbo / portfolio loans: Varies — some banks that hold these in-house allow it, others don’t.

If you have a government-backed loan and want a lower payment, a refinance (or simply prepaying) may be your route instead.

General servicer policies (verify before relying on them)

The following reflects commonly reported practices among large servicers. Confirm the current terms directly, as fees and minimums change.

Chase

Chase has historically allowed recasting on eligible conventional loans for a flat re-amortization fee, with a minimum additional principal payment required. Government loans are excluded.

Wells Fargo

Wells Fargo has generally offered recasting (which it may call “re-amortization” or a “principal reduction” payment adjustment) on eligible conventional loans, subject to a minimum lump sum and a flat fee.

Rocket Mortgage

Rocket Mortgage has generally supported recasting on eligible conventional loans for a flat fee, while excluding FHA, VA, and USDA loans. As both originator and servicer for many loans, Rocket can often handle the request directly.

Mr. Cooper

Mr. Cooper, one of the largest servicers, has generally allowed recasting on eligible conventional loans with a minimum principal payment and a flat processing fee.

Important: The specific dollar minimums and fees above intentionally aren’t quoted because they change and differ by loan. Ask your servicer for the exact, current figures in writing.

Typical recast parameters across the industry

Even though specifics vary, most recast programs share a similar shape:

• Fee: a flat charge, commonly in the $150–$500 range (no closing costs).
• Minimum lump sum: often $5,000–$10,000 of additional principal.
• Rate and term: unchanged — only the payment is recalculated.
• Processing time: usually a few weeks after the lump sum posts.

How to request a recast (step by step)

1. Identify your servicer from your latest statement.
2. Ask if your loan is eligible and request the current fee and minimum.
3. Make the required lump-sum principal payment.
4. Submit the recast/re-amortization request and pay the flat fee.
5. Confirm the new payment and effective date in writing.

Recast, refinance, or just prepay?

If your servicer doesn’t allow recasting, or you want a different outcome:

• Want a lower payment but can’t recast? Consider a refinance — worth it mainly if rates dropped.
• Want to save the most interest? Just prepay principal and keep your payment.
• Not sure? Compare every path on your numbers in the Decision Engine.

The practical takeaway

Most large servicers allow recasting on eligible conventional loans for a flat fee and a minimum lump sum, while FHA, VA, and USDA loans generally don’t qualify. Brand matters less than loan type and your current servicer’s policy — so confirm the exact terms directly, then estimate your new payment in the Mortgage Recast Calculator.

Estimates only. This is not financial advice. Lender policies are summarized generally and change over time — verify with your servicer.

Run the numbers in our calculator →

Frequently asked questions

Do all lenders offer mortgage recasting?

No. Recasting is generally available on conventional (Fannie Mae/Freddie Mac) loans, but FHA, VA, and USDA loans typically do not allow it. Jumbo and portfolio loans vary by lender. Always confirm with your servicer.

How do I request a recast?

Contact your loan servicer (the company you pay each month), ask if your loan is eligible, make the required lump-sum principal payment, pay the recast fee, and submit their re-amortization request form. Processing usually takes a few weeks.

Who actually decides if I can recast?

Your servicer and the loan's investor/owner, not the company that originated the loan. Servicing is frequently transferred, so check with whoever currently sends your statements.