Mortgage Recast Calculator

What is a Mortgage Recast?

A mortgage recast allows homeowners to reduce their monthly mortgage payment by making a large lump sum payment toward the principal balance. After the payment, the lender recalculates the monthly payment based on the new lower balance while keeping the same interest rate and loan term.

How the Mortgage Recast Calculator Works

Enter your remaining balance, current monthly payment, interest rate, and the lump sum amount. The calculator estimates your potential savings and new monthly payment instantly. For a full breakdown including amortization table, try the Mortgage Recast Calculator.

Benefits of Mortgage Recasting

• Lower monthly mortgage payments
• No need to refinance the loan
• Keep your existing interest rate
• Reduce the loan balance faster
• Lower fees compared to refinancing ($150–$500 vs. thousands)

Example

If your remaining mortgage balance is $200,000 and you make a lump sum payment of $20,000, the new balance becomes $180,000. Your lender then recalculates your monthly payment based on the reduced balance — lowering your payment while keeping your rate and term unchanged.

Frequently Asked Questions

What is the difference between recasting and refinancing?

Mortgage recasting reduces your monthly payment by lowering the principal balance while keeping the same interest rate and loan term. Refinancing replaces your existing mortgage with a new loan that may have a different rate or term.

How much does mortgage recasting cost?

Most lenders charge $150 to $500 to recast a mortgage — far less than refinancing costs.

Does recasting change the interest rate?

No. Mortgage recasting keeps the same interest rate and loan term. Only the monthly payment changes based on the reduced loan balance.

When should you consider mortgage recasting?

Recasting is useful when you receive extra funds such as a bonus, inheritance, or savings and want to reduce your monthly mortgage payment without refinancing.