Mortgage Recast Calculator
See how a lump-sum principal payment lowers your monthly bill while keeping your existing rate and term.
Loan Parameters
Apply a lump sum to reduce your payment without changing the loan term.
Monthly P&I
$2,275.44
Principal + Interest
New Monthly Payment
$1,952.28
Principal + Interest
Interest Saved
$58,908
Time Saved
—
Recast Lump Sum
$50,000
Recast at Month #
#24
Principal vs. Interest Over Time
What Is a Mortgage Recast
A mortgage recast is when you make a lump-sum payment toward your principal and your lender recalculates your monthly payment over the remaining balance, keeping the same interest rate and original loan term. Unlike a refinance, there is no credit check, no closing costs, and the process typically costs $250 to $500. It is an ideal option for homeowners who have accumulated equity and want to lower their monthly payments without the expense of a full refinance.
Recast vs. Refinance
A recast keeps your existing interest rate and term — it only recalculates the payment on the new, lower balance. A refinance replaces your loan with a new one, potentially at a different rate. Recasting is cheaper ($250-$500 vs. $3,000-$5,000 in closing costs) but does not let you change your rate. If rates have dropped, refinancing may be better; if you have a favorable rate, recasting is superior.
When to Recast
Recasting is ideal when you have a lump sum (inheritance, bonus, property sale) and want to permanently reduce your monthly payments without extending your loan. It is especially attractive if your current rate is lower than market rates — you would not want to refinance into a higher rate, but you do want to leverage your capital to lower your payment.