Mortgage Recast Calculator

See how much a lump-sum payment lowers your monthly mortgage. Enter your current balance, rate, remaining term, and the lump sum to get your new payment instantly — then unlock your total interest saved and full recast schedule.

Recast details

Years left on your mortgage.

The one-time amount you'll pay toward principal.

After recasting

New monthly payment

$2,294.44

Was $2,622.22

Lower each month by

$327.78

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How a mortgage recast works

When you recast, you pay a one-time lump sum toward your principal and your servicer re-amortizes the remaining balance over the same number of months left on your loan. Your interest rate and term are untouched, so the only thing that changes is a lower required monthly payment. It is a low-cost way to reduce your payment without refinancing.

Recasting is ideal if you have come into a windfall — a bonus, inheritance, or proceeds from selling another property — and want lower monthly cash flow while still keeping your existing low rate. This calculator shows both the new payment and the interest you save over the life of the remaining loan.

Recast vs. refinance vs. extra payments

All three put extra money toward your home, but they do very different things. A recast lowers your monthly payment while keeping the same rate, term, and payoff date. A refinance replaces the loan entirely, which can change your rate and term but requires a full application and closing costs. Making extra payments without a recast keeps your payment the same but shortens the term and gets you debt-free sooner. Recasting is the right tool when your priority is lower required monthly cash flow rather than an earlier payoff.

Pros and cons of recasting

Benefits

  • Keeps your existing — often lower — interest rate.
  • Small flat fee instead of full refinance closing costs.
  • No credit check, appraisal, or new underwriting.
  • Permanently lower required monthly payment.

Trade-offs

  • Requires a sizeable lump sum that is then locked in equity.
  • Does not shorten your loan or change the payoff date.
  • Not available on FHA, VA, USDA, and some other loan types.
  • Saves less interest than putting the same lump sum toward an earlier payoff.

Tips before you recast

  • Confirm eligibility and the fee. Ask your servicer whether your loan can be recast, the minimum lump sum, and the exact cost before committing.
  • Keep an emergency fund. A lump sum into your mortgage is hard to get back — don’t drain the savings you may need.
  • Consider keeping the old payment. If your goal is to be debt-free sooner, you can recast for flexibility but continue paying the original amount to pay off faster.

Frequently asked questions

What is a mortgage recast?
A mortgage recast (also called re-amortization) is when you make a large lump-sum payment toward your principal and your lender recalculates your monthly payment over the same remaining term. Your interest rate and payoff date stay the same, but because the balance is lower, your required monthly payment drops.
How is a recast different from refinancing?
Recasting keeps your existing loan, rate, and term — it only lowers the payment after a lump-sum principal reduction, usually for a small flat fee. Refinancing replaces your loan with a new one, which can change your rate and term but involves a full application, closing costs, and underwriting.
Does recasting save interest?
Yes. Because the lump sum reduces your principal immediately, less interest accrues over the remaining term. This calculator compares the interest you'd pay on your current balance versus the lower balance after the lump sum to show your total interest saved.
Does a recast change my payoff date?
No. A standard recast keeps the same remaining term, so your payoff date does not change — your monthly payment simply becomes lower. If you keep paying the original (higher) amount after recasting, you would pay the loan off even sooner.
How much does it cost to recast a mortgage?
Recasting is usually inexpensive — most lenders charge a flat fee of roughly $150 to $500, far less than the closing costs of a refinance. Many servicers also require a minimum lump sum (commonly $5,000 to $10,000) before they will re-amortize the loan. Always confirm the fee and minimum with your servicer, since policies vary.
Can every mortgage be recast?
Not all of them. Conventional loans are usually eligible, but government-backed loans such as FHA, VA, and USDA mortgages generally cannot be recast, and some jumbo or portfolio loans have their own rules. Recasting is also at the servicer's discretion. Check with your lender to confirm your loan qualifies before planning around it.
Should I recast or refinance my mortgage?
Recast if you are happy with your current interest rate, have a lump sum to apply, and mainly want a lower monthly payment for a small fee. Refinance instead if today's rates are meaningfully lower than your current rate or you want to change your loan term, accepting the larger closing costs and full application that come with a new loan. If your rate is already low, recasting is almost always the cheaper way to reduce your payment.
Is recasting a mortgage free?
The calculator itself is free, and the recast results — your new lower payment — appear instantly. Recasting your actual loan typically carries a small servicer fee. Entering your email here unlocks your total interest saved and full recast schedule at no cost.