Introduction
A mortgage recast lets you lower your monthly payment without refinancing. You make a large lump-sum payment toward your loan principal, and your lender recalculates your payment based on the smaller balance. Your interest rate and loan term stay the same — only your payment goes down.
This mortgage recast calculator shows you exactly how much your payment will drop after a lump-sum payment. It compares three options side by side: keeping your loan as-is, recasting to get a lower payment, or applying the lump sum and keeping your old payment to pay off your home faster. For each option, you'll see your new monthly payment, total interest cost, interest savings, and payoff date.
The calculator also accounts for your lender's recast fee, shows how many months it takes to break even on that fee, and includes a full amortization schedule so you can compare balances month by month. Enter your loan details above to see your results instantly.
How to Use Our Mortgage Recast Calculator
Enter your current loan details and a lump sum amount below. The calculator will show your new monthly payment after a recast, how much interest you save, and how it compares to other options.
Original Loan Amount: Type the full amount you borrowed when you first got your mortgage. This is the starting balance before any payments were made.
Annual Interest Rate: Enter the yearly interest rate on your mortgage. You can find this on your loan statement or closing documents.
Original Loan Term: Enter the length of your mortgage in years and months. Most home loans are 15 or 30 years. Leave months at 0 if your term is an even number of years.
Loan Start Date: Pick the month and year your mortgage began. The calculator uses this to figure out how many payments you have made and what your current balance is.
Current Balance Override: Leave this blank if you have only made regular payments. If you have made extra payments, type your actual balance here so the results are accurate.
Recast Fee: Enter the one-time fee your lender charges to process the recast. Most lenders charge between $150 and $500. Check with your loan servicer for the exact amount.
Lump Sum Amount: Type the amount of money you plan to put toward your principal. You can also drag the slider to adjust this number. Most lenders require at least $5,000 to qualify for a recast.
What Is a Mortgage Recast?
A mortgage recast is when you make a large lump-sum payment toward your loan principal and then ask your lender to recalculate your monthly payment. Your interest rate and loan end date stay the same, but your new monthly payment goes down because you owe less money.
This is different from refinancing. When you refinance, you replace your old loan with a brand new one, which often means new closing costs, a credit check, and sometimes a different interest rate. A recast keeps your current loan in place. Most lenders only charge a small flat fee, usually between $150 and $500.
How a Mortgage Recast Works
You pay a big chunk of money toward your principal balance. Then your lender recalculates your payment based on the lower balance, using the same interest rate and the same number of months left on your loan. The result is a smaller required payment each month.
When a Recast Makes Sense
A recast works well if you come into a large amount of money — like an inheritance, a home sale, or a bonus — and you want to lower your monthly housing costs without refinancing. It is also helpful if your current interest rate is already low and refinancing would give you a worse rate. If you're unsure whether you can comfortably afford your current payments, our home affordability calculator can help you evaluate your budget.
Things to Know Before You Recast
Not all loans can be recast. Government-backed loans like FHA and VA mortgages usually do not allow it. Most conventional loans do. Lenders typically require a minimum lump-sum payment of $5,000 or more. You should call your loan servicer to ask about their specific rules and fees before you commit.
Keep in mind that a recast lowers your monthly payment but does not shorten your loan term. If paying off your mortgage faster matters more to you, simply making extra principal payments without recasting may be the better choice. You can also explore a biweekly mortgage payment strategy to accelerate your payoff. This calculator compares both options side by side so you can see which one saves you more money. To view a detailed month-by-month breakdown of your original loan, try our mortgage amortization calculator.