The Sunday Recast Dry Run That Keeps Our Conventional Refi Honest

A recast sounds glamorous until you actually have to wire the lump sum and prove you understand the math. Our lender asks for a “recast readiness summary” once a quarter, so we turned the request into a standing Sunday ritual. The dry run forces us to document payments, rehearse how we would explain the cash source, and show we have a plan if markets shift.

Step 1: Pull the latest amortization snapshot

We open the amortization tab in our scenario lab spreadsheet and download the current balance, next payment, and unpaid principal portion. Then we duplicate the sheet and drop in our target principal curtailment. Watching the payment change—even slightly—makes the future recast feel real. It also arms us with a slide that shows exactly how much faster the loan would pay off.

Step 2: Stack the cash trail

Before we even think about wiring funds, we gather statements for checking, high-yield savings, and the investment account earmarked for the curtailment. Each PDF is renamed with the date and account nickname. Any funds that began life as a bonus or asset sale get an extra note describing the origin. That note lives in the same folder as our letters of explanation so we can send everything to the lender in one shot when the true recast request arrives.

Step 3: Compare alternatives

We never assume a recast is the best move. Sometimes holding cash allows us to pounce on an investment or cover an upcoming renovation draw. To pressure-test the choice, we open the cash-out comparison grid on Cash-OutRefinance.com. The sheet lets us plug in today’s equity, hypothetical new interest rates, and costs associated with a full refinance. If the delta between recasting and refinancing narrows, we know to slow down.

Step 4: Review lender overlays and timelines

Our lender allows one recast every 12 months with a minimum principal payment. We track those details inside the comparison board we maintain at BrowseLenders.com. The board shows each bank’s fee, processing time, and whether they demand a fresh appraisal. Before we finalize anything, we confirm the overlay hasn’t changed. If another lender offers friendlier terms, we screenshot it and keep it in the folder as leverage.

Step 5: Guard the credit picture

Even though a recast doesn’t require a hard pull, we treat it like any other major move. That means logging into MiddleCreditScore.com to ensure no rogue balance or dispute might complicate the conversation. We also update the utilization timeline to show where card balances will land after shifting cash toward the curtailment.

Step 6: Write the status memo

Everything culminates in a one-page memo titled “Recast Dry Run – [Date].” It includes:

• The proposed payment date and amount of the curtailment
• Updated amortization table excerpts
• Cash source documentation summary
• Alternate strategies we considered (full refi, partial lump sum, or waiting)
• Open questions for the lender

We email the memo to ourselves and store it in the shared folder. When the lender inevitably asks for a progress update, we forward the memo with a short cover note. That single document has shaved days off back-and-forth emails.

Why the ritual matters

• It keeps expectations aligned. Everyone in the household knows the plan, so nobody panics when cash moves.
• It buys credibility. Lenders relax when you clearly understand their rules and document everything without nudging.
• It keeps options flexible. Because we revisit the “refi vs recast” math monthly, we can pivot quickly if rates drop.

Tips if you want to adopt the dry run

1. Schedule it. Sundays work for us because the inbox is quiet and we can think clearly.
2. Treat screenshots like gold. Every time you download a statement or calculator export, label it properly. Future you will thank you.
3. Share the memo. Send it to your agent or financial planner. They may spot a new angle or remind you of upcoming cash needs.

A recast should feel like a deliberate choice, not paperwork you stumble into. By rehearsing every month, the actual request becomes a formality—and you never have to make the decision in a rush.