---
title: "How Much Will a $100,000 Recast Lower a $500,000 Mortgage at 6.25%? (Wells Fargo) | RateRecast"
h1: "How Much Will a $100,000 Recast Lower a $500,000 Mortgage at 6.25%? (Wells Fargo)"
vertical: mortgage_recast
vertical_slug: rate-recast
slug: how-much-will-100k-recast-lower-500k-mortgage-at-6-25-percent-wells-fargo
canonical_url: https://exactbaseline.com/p/rate-recast/how-much-will-100k-recast-lower-500k-mortgage-at-6-25-percent-wells-fargo
authority_sources: "Fannie Mae Servicing Guide F-1-05 & CFPB TILA Reg Z"
governing_formula: "M = P [ r(1 + r)^n ] / [ (1 + r)^n - 1 ]"
buy_instant_action_pass_url: "https://exactbaseline.com/buy/mortgage_recast/flash_pass?current_balance=500000&interest_rate_pct=6.25&remaining_term_months=336&lump_sum=100000&servicer_id=wells_fargo&marginal_tax_rate_pct=28.0&reinvest_rate_pct=4.5"
buy_complete_execution_kit_url: "https://exactbaseline.com/buy/mortgage_recast/full?current_balance=500000&interest_rate_pct=6.25&remaining_term_months=336&lump_sum=100000&servicer_id=wells_fargo&marginal_tax_rate_pct=28.0&reinvest_rate_pct=4.5"
buy_pro_advisor_pass_url: "https://exactbaseline.com/buy/mortgage_recast/pro_b2b?current_balance=500000&interest_rate_pct=6.25&remaining_term_months=336&lump_sum=100000&servicer_id=wells_fargo&marginal_tax_rate_pct=28.0&reinvest_rate_pct=4.5"
---

# How Much Will a $100,000 Recast Lower a $500,000 Mortgage at 6.25%? (Wells Fargo)

> **Direct Answer (Fannie Mae Servicing Guide F-1-05 & CFPB TILA Reg Z):** Under Fannie Mae Servicing Guide F-1-05 & CFPB TILA Reg Z, applying a $100,000 lump-sum principal recast to a $500,000 mortgage at 6.25% with Wells Fargo Home Mortgage reduces your required monthly P&I payment by $630.98/mo (from $3,154.90 to $2,523.92) and saves $112,009.28 in lifetime interest using M = P[r(1+r)^n]/[(1+r)^n-1] over 336 remaining months.

## Deterministic Governing Formula

- **Formula:** `M = P [ r(1 + r)^n ] / [ (1 + r)^n - 1 ]`
- **Authoritative Sources:** Fannie Mae Servicing Guide F-1-05 & CFPB TILA Reg Z
- **Interactive Calculator:** [Open Live RateRecast Calculator](https://exactbaseline.com/calculator/mortgage_recast?current_balance=500000&interest_rate_pct=6.25&remaining_term_months=336&lump_sum=100000&servicer_id=wells_fargo&marginal_tax_rate_pct=28.0&reinvest_rate_pct=4.5)

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## 3-Step Calculation Methodology

1. **Verify Conforming Eligibility & Servicer Minimum:** Confirm your loan is a conventional Fannie Mae or Freddie Mac mortgage with Wells Fargo Home Mortgage and meets the $5,000 to $10,000 minimum curtailment threshold.
2. **Submit Principal Curtailment & Recast Request:** Apply the $100,000 lump-sum principal payment and submit a formal Fannie Mae F-1-05 re-amortization request with the $250 processing fee.
3. **Lock Lower Monthly P&I Schedule:** Execute the signed recast modification agreement to drop your monthly payment by $630.98/mo to $2,523.92 while retaining your 6.25% note rate.

## Major US Mortgage Servicer Recast Fee, Minimum Lump-Sum & F-1-05 Seasoning Benchmark Table

| Loan Servicer | Recast Fee | Minimum Lump Sum | Conforming F-1-05 Eligible | FHA / VA Recast Policy |
| --- | --- | --- | --- | --- |
| JPMorgan Chase | $0 | $5,000 | Yes (2+ consecutive payments) | Excluded (FHA/VA prohibited) |
| Wells Fargo | $250 | $5,000 or 10% of principal | Yes (Good standing required) | Excluded (FHA/VA prohibited) |
| Rocket Mortgage | $250 | $10,000 | Yes (Conventional Fannie/Freddie) | Excluded (FHA/VA prohibited) |
| Mr. Cooper | $250 | $10,000 | Yes (30-45 day processing) | Excluded (FHA/VA prohibited) |
| PennyMac | $250 | $5,000 | Yes (Written modification form) | Excluded (FHA/VA prohibited) |
| Bank of America | $0 | $5,000 | Yes (No credit check or appraisal) | Excluded (FHA/VA prohibited) |
| U.S. Bank | $250 | $5,000 | Yes (Conforming conventional) | Excluded (FHA/VA prohibited) |
| Citibank (Citi) | $250 | $5,000 | Yes (Conforming conventional) | Excluded (FHA/VA prohibited) |

## Frequently Asked Questions (FAQ)

### Q: How much does a $100,000 mortgage recast lower my monthly payment on a $500,000 loan at 6.25%?
Applying a $100,000 principal curtailment and formal re-amortization on a $500,000 balance at 6.25% over 336 remaining months lowers your required monthly P&I payment by $630.98/mo (dropping from $3,154.90 to $2,523.92) while saving $112,009.28 in cumulative interest.

### Q: What is the Wells Fargo Home Mortgage mortgage recast fee and minimum lump-sum requirement?
Under Fannie Mae Servicing Guide F-1-05, Wells Fargo Home Mortgage charges a $250 administrative recast fee with no credit check, no home appraisal, and no change to your 6.25% interest rate. Minimum lump-sum thresholds range from $5,000 (Chase, Bank of America, Wells Fargo, PennyMac, U.S. Bank, Citi) to $10,000 (Rocket Mortgage, Mr. Cooper).

### Q: Is it better to recast a mortgage or make extra principal payments without recasting?
Extra principal payments alone shorten your payoff date but leave your required monthly obligation unchanged at $3,154.90. A formal mortgage recast re-indexes the remaining principal (400,000 USD) across your remaining 336-month term, legally reducing your mandatory monthly payment to $2,523.92.

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