Mortgage Recast Calculator
This mortgage recast calculator, also known as a recast mortgage calculator, helps you instantly calculate your new monthly payment after a lump-sum payment. No login required.
Months left on your loan at the current interest rate.
One-time payment applied to principal before the loan is recast.
Some lenders charge $250–$500 to recast. Enter $0 if not applicable.
Important
This calculator provides estimated recast results for planning only. Recast availability, fees, and minimum payment amounts vary by lender. Always confirm terms with your mortgage servicer before making a lump-sum payment.
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Enter your loan details and click “Calculate recast” to see your new payment and savings here.
Pro tips for mortgage recasts
- Recasting lowers your monthly payment but keeps your rate and remaining term — unlike refinancing.
- Most lenders require a minimum lump sum ($5,000–$10,000) and that you are current on payments.
- Compare net savings (interest saved minus recast fee) before sending a large principal payment.
- Recasting does not shorten your loan term; extra principal without recast reduces term instead.
- Not all loans qualify — FHA, VA, and some jumbo loans may have different rules.
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What Is a Mortgage Recast?
A mortgage recast (also called mortgage reamortization) is when your loan servicer recalculates your monthly payment after you make a large lump-sum payment toward the principal. Your interest rate and loan term stay the same — only your monthly payment decreases.
It works by reducing your principal balance and re-running the amortization schedule for the remaining term. This allows homeowners to lower monthly payments without refinancing or changing loan terms.
Key terms to understand:
- Principal reduction — the lump-sum payment directly reduces your outstanding loan balance
- Loan reamortization — the recalculation of your monthly payment based on the new lower balance
- Loan servicer — the company that manages your mortgage payments and processes recast requests
- Amortization schedule — month-by-month breakdown of principal and interest payments over your remaining loan term
How to Use the Mortgage Recast Calculator
Follow these four steps to calculate your recast mortgage payment instantly:
Step 1 — Enter your remaining loan balance
Enter your current outstanding mortgage principal balance. You can find this on your latest mortgage statement or lender portal.
Step 2 — Enter your annual interest rate
Add your existing mortgage interest rate. This rate stays the same after recasting, which is a key advantage over refinancing.
Step 3 — Enter your remaining loan term
Enter the number of years left on your loan. The loan term does not change after a recast.
Step 4 — Enter your lump-sum recast payment
Enter the amount you plan to pay toward your principal in a one-time payment. Most lenders require a minimum of $5,000–$10,000, and a larger payment results in greater monthly savings.
After you calculate, this mortgage recast payment calculator instantly shows:
- New monthly payment after recasting
- Monthly payment before recasting
- Monthly savings amount
- Total interest savings over the remaining loan life
- Interest remaining before vs after recast
Mortgage Recast Formula
This recast mortgage calculator uses the standard loan amortization formula:
M = P × [r(1+r)ⁿ] ÷ [(1+r)ⁿ – 1]
Where:
- P = New principal balance after lump-sum payment (original balance minus lump-sum)
- r = Monthly interest rate (annual interest rate ÷ 12)
- n = Remaining number of monthly payments
Example calculation:
- Remaining balance: $300,000
- Lump-sum payment: $50,000
- New principal (P): $250,000
- Annual rate: 6.5% → Monthly rate (r): 0.5417%
- Remaining term (n): 300 months (25 years)
- New monthly payment = $250,000 × [0.005417 × (1.005417)³⁰⁰] ÷ [(1.005417)³⁰⁰ – 1] = $1,687/month
The amortization schedule after recasting recalculates every monthly payment, showing exactly how much goes to principal reduction versus interest each month for the rest of your loan term.
Mortgage Recast Before vs After
| Scenario | Loan Balance | Interest Rate | Term Left | Monthly Payment | Total Interest Paid |
|---|---|---|---|---|---|
| Before Recast | $300,000 | 6.50% | 25 years | $2,025 | $307,500 |
| After $50,000 Recast | $250,000 | 6.50% | 25 years | $1,687 | $256,100 |
| Your Savings | $50,000 less | Same | Same | $338/month | $51,400 saved |
Use the calculator above for your exact numbers based on your actual balance, rate, and lump-sum amount.
Mortgage Recast vs Refinance vs Extra Payments
| Feature | Mortgage Recast | Refinance | Extra Principal Payment |
|---|---|---|---|
| Lowers monthly payment | ✅ Yes | ✅ Yes | ❌ No |
| Changes interest rate | ❌ No | ✅ Yes | ❌ No |
| Changes loan term | ❌ No | ✅ Yes | ❌ No (shortens payoff) |
| Requires credit check | ❌ No | ✅ Yes | ❌ No |
| New appraisal needed | ❌ No | ✅ Yes | ❌ No |
| Closing costs | $150–$500 fee | $3,000–$6,000 | $0 |
| Amortization recalculated | ✅ Yes | ✅ Yes | ❌ No |
| Helps remove PMI | ✅ If LTV drops below 80% | Sometimes | ✅ If LTV drops below 80% |
| Best for | Lower payment, keep your rate | You need a better rate | Fastest payoff, max interest savings |
Bottom line: Keep your rate? Recast. Need a lower rate? Refinance. Want fastest payoff? Make extra payments.
Recast vs Extra Payments
Some homeowners ask whether to recast their mortgage or simply make extra principal payments each month. Here is the key difference:
Extra payments without recasting reduce your total interest and shorten your payoff timeline, but your required monthly payment stays the same. You build equity faster, but your monthly obligation does not drop.
Recasting after a lump-sum payment reduces your required monthly payment permanently, but your loan term stays the same. Your total interest savings are lower than with aggressive extra payments, but you free up monthly cash flow immediately.
Best strategy: If you receive a one-time windfall (inheritance, home sale proceeds, bonus), make the lump-sum payment and then recast to lock in a lower required monthly payment. You can still make extra payments after recasting to pay off your loan even faster.
Recasting Impact on Escrow, Taxes & Insurance
Your escrow account (taxes and insurance) is separate from your mortgage payment. Recasting only reduces your principal and interest (P&I); escrow stays based on actual costs.
What this means:
- Your recast calculator result shows P&I savings only. Your actual new total payment will include escrow for taxes and insurance on top.
- PMI (Private Mortgage Insurance): If your lump-sum payment reduces your LTV ratio below 80%, contact your loan servicer immediately to request PMI cancellation. This can add another $100–$300/month in savings on top of your recast savings.
- LTV ratio after recasting: Divide your new loan balance by your home's current value. If the result is 0.80 or below, you may qualify for PMI removal — a major additional benefit of making a large principal reduction.
When to Use a Mortgage Recast Calculator
After selling your previous home
Apply home sale proceeds as a lump-sum payment and recast immediately to lower your new home's required monthly payment.
After receiving a financial windfall
A bonus, inheritance, or large investment payout is the ideal trigger for calculating recast mortgage savings.
When your interest rate is already competitive
Refinancing may not be worth it. Use this free mortgage recast calculator to compare savings before and after a lump-sum payment.
To eliminate PMI
Calculate whether a lump-sum payment drops your LTV below 80%. If it does, recasting plus PMI removal can save you $400–$600/month combined.
To reduce financial stress
Lower monthly payments and free up cash for savings, emergencies, or investments — without changing your loan or interest rate.
Mortgage Recast Requirements
Most loan servicers require the following to approve a mortgage recast:
| Requirement | Details |
|---|---|
| Loan type | Conventional loans only — FHA, VA, and USDA loans do not qualify |
| Minimum lump-sum payment | Typically $5,000–$10,000 depending on servicer |
| Payment history | Must be current on your mortgage (no recent missed payments) |
| Written recast request | Submit a formal recast request letter to your loan servicer |
| Processing fee | $150–$500 depending on lender |
| Waiting period (second recast) | Some servicers require 12 months between recasts |
Lenders that offer mortgage recasting include Chase, Wells Fargo, Bank of America, Rocket Mortgage, Freedom Mortgage, and Movement Mortgage. Availability varies, so confirm with your lender.
Frequently Asked Questions
Is mortgage recasting worth it?
Yes — it's worth it if your interest rate is good and you want lower monthly payments without refinancing costs. You save on monthly cash flow and total interest over time.
How do I calculate recast mortgage payment?
Enter your loan balance, interest rate, remaining term, and lump-sum payment in the calculator. It will instantly show your new monthly payment and total savings.
What is the difference between mortgage recast and refinance?
Recasting keeps your same loan and just lowers payments. Refinancing replaces your loan completely with new terms, rate, and closing costs.
What are the mortgage recast requirements?
Most lenders require a conventional loan, $5,000–$10,000 lump sum, current payments, and a small processing fee. Requirements vary by servicer.
Does mortgage recasting affect my credit score?
No — recasting does not involve a credit check or new application. Your credit score remains unchanged.
Should I recast my mortgage or make extra principal payments?
Recasting lowers your monthly payment, while extra payments reduce loan term and interest. Many homeowners use both strategies together.
Can I recast an FHA, VA, or USDA mortgage?
No — government-backed loans are not eligible. Only conventional loans allow mortgage recasting through most lenders.
Summary
Enter your loan balance, interest rate, remaining term, and lump-sum payment to estimate your new monthly payment, monthly savings, and total interest saved. Confirm recast eligibility, fees, and PMI impact with your loan servicer before making a lump-sum payment.
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