Mortgage Recast Calculator

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.

How does a mortgage recast work?

A mortgage recast works in three steps. First, you make a large one-time payment toward your principal — most servicers require a minimum lump sum, commonly $5,000 to $10,000. Second, your servicer applies that payment to your balance and re-amortizes the loan: it recalculates your required monthly payment so the new, smaller balance is paid off over the same number of months left on your original term. Third, you start paying the new lower amount. Your interest rate does not change, your remaining term does not change, and your payoff date stays the same — only the monthly payment drops, because there is less principal to spread across the same number of months. A recast usually costs a flat fee of roughly $150 to $500, far less than refinancing. The result is lower monthly cash flow while you keep your existing rate. Enter your balance, rate, remaining term, and lump sum in the calculator above to see your exact new payment and the interest you would save.

How many times can you recast a mortgage?

There is no single industry-wide limit — the number of recasts allowed is set by your loan servicer, and policies vary. Many lenders permit more than one recast over the life of a loan, while others cap it at one, or allow a recast only once every set period such as every 12 months. Each recast typically requires its own qualifying lump sum (often a $5,000 to $10,000 minimum) and its own flat fee. Because every recast resets the payment against the lower balance over the same remaining term, repeated recasts can keep lowering your monthly payment as you pay down principal, but the fees and minimums can add up. If you expect to make several large principal payments over time, ask your servicer directly how many recasts they allow, whether there is a waiting period between them, and what each one costs before you plan around it.

How often can you recast a mortgage?

How often you can recast depends entirely on your servicer's rules. Some lenders allow a recast at any time once you meet the minimum lump-sum requirement, while others impose a waiting period — for example, no more than one recast in any 12-month window, or a limit on the total number over the life of the loan. There is no federal rule setting a universal frequency, so the answer comes from your loan agreement and your servicer's current policy. Practically, most homeowners recast only once, after a single windfall such as a bonus, inheritance, or proceeds from selling another property. If you anticipate recasting more than once, confirm the frequency limit, any cooling-off period, the minimum lump sum, and the fee with your servicer in advance so you can time your principal payments to qualify.

How do I request a recast from my lender?

To request a recast, start by calling your loan servicer — the company you send your monthly payment to — and asking whether your loan is eligible and what their recast process is. Confirm three things up front: that your loan type qualifies (conventional loans usually do; FHA, VA, and USDA loans generally do not), the minimum lump sum required, and the flat fee. Next, you typically submit a written recast request and make the qualifying lump-sum principal payment, either before or alongside the request, depending on the servicer's instructions. The servicer then re-amortizes your loan and sends you confirmation of your new, lower monthly payment, which usually takes effect within one to two billing cycles. Keep written records of the request and payment, and verify on your next statement that the lump sum was applied to principal and the payment was correctly recalculated. Always get the eligibility, minimum, and fee in writing before sending money.