If your mortgage is fixed, the Fed didn't touch it
About half of US mortgages carried a rate below 4% in early 2026, according to FHFA data, and most are fixed for 30 years. A Fed rise doesn't change those payments at all. That's why this book is mostly about your other debts. But if you bought or refinanced recently at 6% to 7%, extra payments on the mortgage are worth a real look.
Extra payment and recast are different things
An extra payment goes straight off the principal. Your required payment stays the same, so the loan finishes early and you pay less interest. Ask your servicer to apply it to principal.
A recast takes a lump sum off the balance and then recalculates your monthly payment over the years you have left. Same rate, same end date, lower payment. Servicers typically charge a fee of a few hundred dollars and may want a minimum lump sum. FHA, VA and USDA loans generally can't be recast.
Why a recast can still be the smart move
A lower required payment frees cash every month and gives you room if money gets tight. If that freed cash goes straight onto a 22% credit card, it can beat paying extra on a 6.8% mortgage by a wide margin.
Refinancing isn't the answer for most people right now
With 30-year rates near 6.8% in September 2026, refinancing a 3% or 4% mortgage would raise the payment. A recast is the way to lower a payment without giving up the rate.
