Mortgages
Mortgage Recast Calculator
A recast is the quiet alternative to refinancing. You put a lump sum against principal, the lender re-amortises what's left over the same remaining term, and your monthly payment falls — no new loan, no credit check, usually a fee of a few hundred dollars.
New monthly payment
$1,688.02
Same payoff date, smaller payment.
- Monthly saving
- $337.60
- Payment today
- $2,025.62
- Balance after the lump sum
- $250,000
- Interest saved
- $51,280
How this calculator works
The current payment is the level payment that amortises today's balance over the remaining term at your rate. The new payment does the same for the balance after the lump sum, over the identical term. Interest saved compares total payments minus principal in each case.
Principal and interest only — taxes, insurance, and any PMI are unchanged by a recast and are not shown. Servicer fees are excluded; subtract them from the interest saved for the true net benefit.
Try an example
Frequently asked questions
What is a mortgage recast?
You pay a lump sum against principal and ask the servicer to re-amortise the loan over the remaining term. The rate and payoff date do not change; the payment drops because the same schedule now covers a smaller balance. Fees are typically a few hundred dollars, against thousands for a refinance.
Recast or just pay extra?
They spend the same money on different outcomes. Extra payments keep your payment the same and pull the payoff date closer, saving the most interest. A recast keeps the date and lowers the payment, improving monthly cash flow. Choose breathing room or a shorter loan — the lump sum cannot buy both.
Recast or refinance?
Recast if your rate is already good: it is cheap, quick, and requires no underwriting. Refinance if rates have fallen far enough to justify closing costs, since only a refinance changes the rate. Someone holding a 3% mortgage in a 7% market almost never wants to refinance — recasting keeps that rate intact.
Will my lender allow it?
Most conventional loans permit it; FHA, VA, and USDA loans generally do not. Servicers usually require a minimum lump sum (often $5,000–$10,000), a current payment history, and charge a processing fee. Ask specifically for a 'recast' or 're-amortisation' — front-line staff sometimes confuse it with refinancing.
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Disclaimer: DayCents provides this calculator for educational purposes only. Results are estimates based on your inputs and the stated assumptions — they are not financial advice, a quote, or an offer of credit. Consult a qualified financial professional before making major money decisions.