Early Payoff or Lower Monthly Payment?
Here are two smart ways to put extra savings toward your long‑term financial goals — all without refinancing.
Your Options at a Glance
Compare the two approaches to see which best aligns with your goals.
| Key Information | Loan Recasting | Early Principal Paydown |
|---|---|---|
| What it does | After a lump-sum principal payment, we re-amortize your remaining balance so your required monthly principal & interest (P&I) payment goes down. Your rate and maturity stay the same. | Make extra principal payments whenever you choose. Your monthly P&I payment stays the same, but you'll shorten your term and reduce total interest. |
| Monthly P&I payment | Goes down | Stays the same |
| Loan term | Unchanged | Gets shorter |
| Total interest paid | Reduced | Significantly reduced |
| Process & fees | Minimum lump sum $10,000; $250 fee (waived at $15,000 or more). No appraisal, credit check, or income verification. | No fee or paperworksimply pay extra toward principal when you can. |
| Best for | Improving monthly cash flow and keeping your current low rate. | Becoming mortgage-free sooner and maximizing long-term interest savings. |
| Get started |
Compare the two approaches to see which best aligns with your goals.
Loan Recasting
What it does
After a lump-sum principal payment, we re-amortize your remaining balance so your required monthly principal & interest (P&I) payment goes down. Your rate and maturity stay the same.
Monthly P&I payment
Goes down
Loan term
Unchanged
Total interest paid
Reduced
Process & fees
Minimum lump sum $10,000; $250 fee (waived at $15,000 or more). No appraisal, credit check, or income verification.
Best for
Improving monthly cash flow and keeping your current low rate.
Get started
Early Principal Paydown
What it does
Make extra principal payments whenever you choose. Your monthly P&I payment stays the same, but you'll shorten your term and reduce total interest.
Monthly P&I payment
Stays the same
Loan term
Gets shorter
Total interest paid
Significantly reduced
Process & fees
No fee or paperworksimply pay extra toward principal when you can.
Best for
Becoming mortgage-free sooner and maximizing long-term interest savings.
Which Approach Is Right for You?
Consider Recasting if:
- Your top priority is lowering your monthly expenses
- You want to keep your current rate and term
- You’d like more flexibility in your budget
Consider Early Payoff if:
- You want to own your home outright sooner
- You want to maximize long‑term interest savings
- Your budget is comfortable as‑is
- You have substantial savings from a bonus, tax refund, or inheritance
Recast Analysis Request Form
Fill in your information below and a member of our Loan Servicing Team will be in touch