Recast
Paying a lump sum toward principal and having the lender recalculate your payment over the remaining term at the same rate. It costs far less than refinancing, but not every lender or loan type allows it.
Also called: mortgage recast, loan recast, re-amortization
Related terms
The amount you borrowed, or the part of it you still owe. Each payment covers interest first, and the rest pays down principal, which builds equity.
Paying off a loan through regular payments over a set term. Early payments go mostly to interest; later ones go mostly to principal. An amortization schedule shows that split for every payment.
Replacing your current mortgage with a new one, usually to get a lower rate, change the term, or drop mortgage insurance. It comes with new closing costs, so the savings need to outweigh them.
A fee for paying off a loan early, through a sale, refinance or large extra payments. It is rare and limited on most home loans today but common on investment and commercial loans.
A permanent change to a mortgage's terms, such as a lower rate, longer term or added balance, to make payments affordable after a hardship. It is negotiated with the servicer and avoids refinancing.