Mortgage Recast Calculator
See the new monthly payment after a principal lump sum, then compare that recast with keeping your current payment and paying the mortgage off early.
Recast, then pay the new amount
The loan still ends in 27 years. Interest falls by $26,814. After the $250 fee, the net interest savings are $26,564.
Apply the lump sum and keep today’s payment
The loan ends in 22 years, 8 months and interest falls by $92,370. No recast fee. The required payment does not drop.
Recast versus refinance versus extra payments
A recast keeps your rate and your maturity date. A refinance replaces the loan, which can change the rate, the term, and the fees. An extra payment, or a lump sum you do not ask the servicer to recast, keeps the required payment and moves the payoff earlier.
On these inputs, keeping the current payment saves $92,370 of interest. Recasting saves $26,814 before the fee. The recast is the better cash-flow choice. Keeping the payment is the better interest choice. Use the mortgage payoff calculator with extra payments to test a monthly amount on top of a lump sum.
This math does not include taxes or insurance, and it assumes the servicer accepts the lump sum and recasts the remaining 27 years. Eligibility and minimum amounts vary.
Common questions
What is a mortgage recast?
A recast applies a lump sum to principal and then recalculates the required payment over the years you have left. The interest rate and the original payoff date stay the same. It is not a refinance and it does not require a new credit check at most servicers.
Does every mortgage allow a recast?
Many conventional loans do. FHA, VA, and USDA loans often do not. Servicers also set a minimum lump sum, commonly several thousand dollars, and charge a processing fee. Ask your servicer whether your loan is eligible before counting on the lower payment.
Should I recast or keep my current payment?
Recasting lowers the payment and leaves the payoff date unchanged, so you pay more interest than you would by applying the same lump sum and continuing to pay the old amount. Keep the old payment when the goal is to be done sooner. Recast when the goal is a lower required payment.