If you want the recast, do it now. A recast closes no doors, and you can still refinance later if a refinance ever makes sense. A recast re-amortizes your existing loan around the lower balance after you apply a lump sum. Doing one today does not block a future refinance. If anything, refinancing a smaller balance later can mean lower closing costs. Nobody can promise where rates go, so timing a recast around a hoped-for drop is guessing, not planning. The two moves are separate decisions anyway. The bigger question is personal: do you value the lower monthly payment more than keeping that cash invested or liquid? Depending on what the money could earn elsewhere, a recast is often a cash-flow and peace-of-mind decision as much as a math one. Sometimes it is simply a necessity. We had a client do a cash-in refinance on a 2.2 million dollar loan, bringing a million dollars to get the balance down to 1.2 million, because that was what the situation required. Run both scenarios side by side, recast now versus hold the cash, and compare the payment relief against the liquidity you give up. The right call is the one that fits your goals and lets you sleep at night, and that call is yours.