What’s the difference between a mortgage recast and a mortgage refinance?

Question

Accepted Answer

A mortgage recast involves making a lump-sum payment toward your principal balance, which results in lower monthly payments. It doesn’t require a credit check, home appraisal or closing costs.
With mortgage refinancing, you take out a new mortgage and use it to pay off your existing mortgage. It doesn’t require a lump-sum payment, but you’ll likely need a home appraisal and have to pay closing costs.