PennyMac Mortgage Recast Calculator
Payment breakdown
Interest & break-even
Total monthly housing cost
Where your money goes over time
If the freed-up cash is invested at 7%, the saved payments grow to about $0 by payoff.
Four ways to use that cash
| Scenario | Monthly P&I | Interest left | Payoff | What happens |
|---|
Show the full amortization schedule (before vs after)
| # | Int. now | Prin. now | Bal. now | Int. recast | Prin. recast | Bal. recast |
|---|
How to use this calculator
- Enter your current loan balance, interest rate, and remaining term.
- Enter the lump-sum amount you plan to pay toward principal.
- Click Calculate to see your new payment, interest savings, and comparison.
About this tool
PennyMac is one of the largest loan servicers in the country, and it does offer recasting on eligible conventional loans. Enter your numbers for an independent estimate of your new payment — then confirm the specifics with PennyMac. (This isn't PennyMac's official site.)
PennyMac recast — what to check
PennyMac's own help center documents a recast (sometimes called a principal recast) with a processing fee, submitted alongside your lump-sum principal payment. The estimate above uses standard amortization math; the numbers PennyMac gives you are the official ones. Treat the points below as a checklist.
- Fee: PennyMac has reported a $250 recast processing fee, paid with your lump sum. Confirm the current amount.
- Eligibility: Conventional loans are typically eligible; government-backed loans (FHA, VA, USDA) generally are not.
- Minimum & seasoning: Expect a minimum principal amount and a short payment history requirement before a recast is allowed.
- Timing: Recasts commonly take a few weeks to process; ask which statement will show the new payment.
Guies Roc Blanc is not affiliated with PennyMac. Verify the current fee, minimum and eligibility at pennymac.com or with PennyMac servicing.
How to submit a PennyMac recast
PennyMac handles recasts through its servicing side rather than a self-service button, so the flow is deliberate. You start by contacting servicing (or the secure message center in your online account) to confirm your loan qualifies and to request the recast. Crucially, PennyMac's own guidance notes that the recast fee is submitted together with your lump-sum principal payment — the fee doesn't come out separately, so send both in the same request. Once the funds and the signed request are received and processed, the loan is re-amortized and your lower payment appears on an upcoming statement.
One practical tip specific to PennyMac: make sure any large payment is clearly designated as a recast, not just a "principal-only" payment. Those are two different transactions in their system — a principal-only payment reduces your balance but leaves your monthly payment unchanged, while the recast is what actually recalculates the payment. Getting the label right avoids a common back-and-forth.
PennyMac recast — FAQ
Does PennyMac allow mortgage recasting?
Yes — PennyMac offers recasting on eligible conventional loans. Its help center documents the process and a recast fee. Confirm your loan qualifies.
How much is the PennyMac recast fee?
PennyMac has reported a $250 processing fee, paid together with your lump-sum principal payment. Confirm the current figure with PennyMac.
Can I recast an FHA or VA loan with PennyMac?
Generally no. Government-backed loans aren't eligible for recasting; conventional loans are the usual candidates.
How long does a PennyMac recast take?
Typically a few weeks after your principal payment and request are processed. Ask which billing cycle reflects the new payment.
Does recasting change my PennyMac interest rate?
No. A recast keeps your rate and term; only the monthly principal-and-interest payment is recalculated on the lower balance.