---
title: "Recast — What It Means | Ondo RE"
canonical: https://www.ondorealestate.com/glossary/recast/
---

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Mortgage & lending[All terms starting with R](/glossary/#letter-R)

# Recast

Also called: mortgage recast, re-amortization

Re-amortizing an existing loan after a large principal payment, lowering the monthly payment while keeping the rate and term.

You make a lump-sum payment toward principal, and the servicer recalculates the payment over the remaining term. The note rate does not change and there is no new loan, so a recast avoids the cost and underwriting of a refinance.

Not every loan or servicer permits it, and there is usually a fee and a minimum lump sum. A recast lowers the payment; it does not shorten the term.

## Why it matters

If you like your rate and simply want a smaller payment after a windfall, a recast is often the cheaper answer than refinancing.

## Related terms

- [RefinanceReplacing an existing mortgage with a new one to change the rate, the term, or both.](/glossary/refinance/)
- [AmortizationThe schedule that splits each mortgage payment between interest and principal over the life of the loan.](/glossary/amortization/)
- [PrincipalThe amount borrowed and still owed, separate from the interest charged on it.](/glossary/principal/)

## Go deeper

- [Recast vs refinance](/blog/recast-vs-refinance/)

## More in Mortgage & lending

- [Amortization](/glossary/amortization/)
- [APR (Annual Percentage Rate)](/glossary/apr/)
- [ARM (Adjustable-Rate Mortgage)](/glossary/arm/)
- [Cash-out refinance](/glossary/cash-out-refinance/)
- [Closing costs](/glossary/closing-costs/)
- [Conforming loan](/glossary/conforming-loan/)

## Have a question about your own situation?

Ondo handles brokerage, lending, property management and notary under one roof, so the answer does not change depending on who you ask.

[Talk to Ondo](/contact/)[Browse all terms](/glossary/)

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