Use these comparisons for planning; final eligibility, pricing and terms are set by the provider.
Compare the product features
| Decision dimension | Mortgage Recast Options | Mortgage Refinance Options |
|---|---|---|
| Underlying loan | Existing loan subject to servicer rules | New mortgage replaces old debt |
| Rate | Does not ordinarily reset the note rate | New quoted rate and terms |
| Main cash input | Lump-sum principal reduction | Closing costs and any cash contribution |
When to examine mortgage recast options
A recast review can be useful when cash is available and preserving the existing note terms matters.
When to examine mortgage refinance options
A refinance review is useful when a new rate, term or loan structure is the objective.
Keep the lump-sum payment equal across scenarios
Illustration: a homeowner has $40,000 available for principal. Compare recasting after that payment with refinancing after the same payment. Do not give only the refinance scenario a lower balance. Include the servicer’s recast fee and eligibility decision separately from refinance costs.
Avoid an unequal cost comparison
Do not compare a recast after a large principal payment with a refinance without the same cash contribution.
Use the same property or clearly label a different housing scenario. Match the net funds advanced, holding period and costs being counted. Principal repayment consumes cash but reduces debt; fees and interest are borrowing costs. Keep taxes, insurance, upkeep and any other recurring costs visible without counting them twice.
Inputs for the next step
| Input | Comparison use |
|---|---|
| Purpose and occupancy | Confirm both routes fit the actual transaction. |
| Written terms or labeled assumptions | Do not substitute a public advertisement for a personalized quote. |
| Upfront and financed charges | Show cash required and changes to the opening balance separately. |
| Expected holding period | Compare the payment history and remaining obligation at the same date. |
Choose a route, then request actual terms
What happens when the same available cash is applied consistently to both scenarios?
Use the linked product pages to identify the eligibility and documentation checks. Confirm them directly with a verified provider. For supported fully amortizing fixed-rate quotes, the quote tool compares entered costs; it does not rank lenders or certify that either proposal is available. For variable, project or other special financing, use the relevant calculator and contract-specific information.
Continue the comparison
Open Mortgage Recast Options · Open Mortgage Refinance Options · Compare My Written Fixed-Rate Quotes
Program references and comparison sources
CFPB: Understand the different kinds of loans available — Loan structures, terms and repayment risks; not provider-specific eligibility.
CFPB: Loan Estimate explainer — Comparison of covered mortgage disclosures, cash to close, points, lender credits and monthly costs.
Check the linked source for its effective date and applicable scope. A source link is not a lender partnership or an individual offer.