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Mortgage recast calculator
You have a lump sum. Spend it on a lower monthly payment (recast), or keep paying the same and finish years early? Two trails from the same point.
Recast
$1,535.24/mo
Payment drops by $255.87 a month. Same end date (27 yrs). Interest saved: $42,653 after the fee.
Keep paying $1,791
7 yrs 9 mo
sooner: done in 19 yrs 3 mo. Interest saved: $127,618, and you can still request a recast later if money gets tight.
How lenders recalculate a recast payment
The servicer applies your lump sum, then runs the standard payment formula on the new balance, the same rate and the months remaining. Nothing else about the loan changes. That's why recast savings are smaller: the loan still takes the full remaining term.
A recast makes most sense when you need a lower required payment: after selling a previous home, when income drops, or to qualify for another loan. If you don't need the cash flow, keeping the old payment gets you debt-free sooner, and you can compare that path in detail with the early mortgage payoff calculator.
Questions people ask
What is a mortgage recast?
After you pay a large lump sum toward principal, the lender re-amortizes the lower balance over the remaining term, which lowers your monthly payment. The rate and the end date stay the same.
Recast or keep the same payment: which saves more?
Keeping your old payment after a lump sum saves more interest, because the higher payment keeps attacking principal and the loan ends years early. Recasting saves less interest but frees up monthly cash flow. The calculator shows both.
How much does it cost to recast a mortgage?
Lenders commonly charge a flat fee of a few hundred dollars and require a minimum lump sum, often $5,000 to $10,000. Not every loan qualifies; FHA and VA loans generally cannot be recast.
Is recasting better than refinancing?
Recasting keeps your current rate and has a small fee, with no credit check or closing costs. Refinancing can change the rate and term but costs thousands. If your rate is already good, recasting is the cheaper way to lower the payment.