A mortgage recast calculator shows your new monthly payment after making a lump sum principal payment and asking your lender to re-amortize the remaining balance over the original remaining term.
Current Loan Details
Typical: $150-$500
Should You Recast Your Mortgage?
A mortgage recast makes sense when you have a lump sum (from selling another property, inheritance, bonus, etc.) and want to reduce your monthly payment without refinancing. It's simpler and much cheaper than refinancing.
Recast vs Extra Principal Payments
Paying extra principal each month reduces your loan term and saves more interest. Recasting reduces your monthly payment but keeps the same term. If you want lower monthly cash-flow requirements, recast. If you want to pay off the loan sooner and save the most interest, extra monthly payments are more effective.
Recast vs Refinance
Refinancing replaces your loan with a new one — beneficial if current rates are lower than your existing rate. Recasting keeps your current rate — beneficial when your rate is already competitive and you just want a lower payment. Recasting costs $150-$500 vs $3,000-$7,000 for a refinance.
FAQ
Is this mortgage recast calculator free?
Yes, completely free with no signup required.
Is my data private?
Yes. All calculations run locally in your browser.
What is a mortgage recast?
A mortgage recast (or re-amortization) is when you make a large lump sum payment toward your principal, then ask your lender to recalculate your monthly payment over the remaining loan term using the new lower balance. The interest rate and remaining term stay the same — only the payment changes.
How much does a mortgage recast cost?
Most lenders charge $150-$500 for a recast. Some lenders include it as a free service. Most require a minimum lump sum of $5,000-$10,000. Not all loan types qualify — FHA, VA, and USDA loans typically cannot be recast.
Should I recast or pay extra principal each month?
Recasting reduces your required monthly payment (increasing cash flow and reducing monthly obligation). Extra principal payments pay off your loan faster but don't reduce your required payment. Recasting is better if you want lower monthly obligations. Extra payments are better if you want to minimize total interest paid.
Is recasting the same as refinancing?
No. Refinancing replaces your loan with a new one at current rates (involves closing costs of $3,000-$7,000). Recasting keeps your existing loan terms and rate intact — only the payment is recalculated. Recasting is simpler and cheaper but doesn't help if you need a lower rate.