Which loans can be recast?
The first question, before any arithmetic. Roughly a quarter of US mortgages are government-backed, and none of them can be recast — no matter what the servicer’s fee schedule says.
If your loan is FHA, VA or USDA
Two routes remain, and the calculator prices both
Pay the balance down and keep your payment. The term shortens instead of the payment falling. On the canonical case that pays the loan off 84 months early and saves more than $109,000 of interest against a recast — so on the arithmetic alone, this is the option recasting was competing with anyway.
Refinance. That replaces the note entirely, which means a new rate, a new term, a credit check, an appraisal and closing costs. Whether it wins depends almost entirely on how your current rate compares with today’s.
If your loan is conventional
Eligibility then comes down to the servicer’s own rules rather than to the loan programme. Across the 24 servicers on file, four conditions recur.
A minimum curtailment
$5,000 to $10,000 where it is published. 10 of 24 servicers publish one at all.
Seasoning
Typically two payments made, or 90 days if the loan was recently transferred to them. Several servicers require 60 to 90 days from origination.
Frequency
Once per twelve months is the modal rule. One servicer allows it once in the life of the loan.
Lien and product
First lien only in several policies, and interest-only loans, Option ARMs and ARMs close to a reset are commonly excluded.
Servicers that publish an exclusion list
| Servicer | Excludes | Minimum |
|---|---|---|
| Chase | FHA, VA, USDA | Not published |
| Rocket Mortgage | FHA, USDA, VA | $10,000 |
| Mr. Cooper | VA, FHA, GNMA, USDA, Interest-only, Option ARM, Commercial | $10,000 |
| Flagstar | VA, FHA, GNMA, USDA, Interest-only, Option ARM | $10,000 |
Verified 27 August 2026. Servicers not listed here publish no exclusion list — which is not the same as having none.
Not sure which loan you have?
Your closing disclosure states the programme on page 1. Your servicer will tell you on the phone in under a minute. It is worth the minute — it decides the whole question.