Mortgage Recast Calculator
A recast applies a lump sum to your principal and re-amortizes the lower balance over the same remaining term, so your monthly payment drops while the payoff date and rate stay the same. Enter your balance, rate, months left and lump sum to see the new payment and what you save.
How to use the mortgage recast calculator
- Enter your current loan balance, interest rate and the number of months left on the term.
- Enter the lump sum you plan to put toward the principal, plus any recast fee your lender charges.
- Review your new monthly payment, the monthly savings and the total interest saved over the remaining term.
Examples
300k balance at 6% with 30 years left, 50k lump sum
Balance 300,000, rate 6%, 360 months left, lump sum 50,000
New balance 250,000, payment falls from about 1,798.65 to 1,498.88, saving roughly 299.77 a month
Frequently asked questions
What is a mortgage recast?
A recast is when your lender applies a lump sum to your loan balance and then re-amortizes the smaller balance over your remaining term. Your interest rate and payoff date stay the same, but your monthly payment goes down.
How is a recast different from a refinance?
A recast keeps your existing loan, rate and term and only lowers the payment after a lump sum. A refinance replaces the loan with a new one, which can change your rate and term but involves a full application, closing costs and credit checks. Recasts usually cost a small flat fee instead.
Does a recast change my payoff date or save the most interest?
No, the term stays the same, so the payoff date does not move. You save interest because the balance is smaller, but making the same lump-sum payment without recasting (keeping your old payment) pays the loan off sooner and saves even more interest. A recast trades some of that for a lower required payment.
How is the new payment calculated?
We subtract the lump sum from your balance, then amortize that new balance at your current monthly rate over the same number of months left. Because the rate and term do not change, the payment scales with the balance: pay down a sixth of the principal and the payment falls by about a sixth.
Do all loans allow recasting?
Many conventional mortgages allow it, often with a minimum lump sum and a small fee, but government-backed loans such as FHA, VA and USDA generally do not. Check with your servicer for their recast rules and fee.
Is my financial information private?
Yes. The calculation runs in your browser and your figures are never sent to a server or stored. The numbers are estimates for comparison only, so confirm exact terms and fees with your lender.
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