FAQS About Mortgage Recast Calculator
A mortgage recast calculator is a tool that helps homeowners estimate the new monthly payments and total interest savings after making a lump sum payment towards their mortgage principal.
Mortgage recast calculators provide reliable estimates based on the information you input, but actual results may vary slightly depending on your lender's specific policies and any additional fees or conditions they may impose.
You will need your current loan balance, interest rate, remaining loan term, and the amount you plan to pay towards the principal to use a mortgage recast calculator effectively.
Yes, many financial websites and mortgage lenders offer free mortgage recast calculators online.
Some lenders charge a fee for recasting a mortgage, which can range from a few hundred dollars to around $500. It's essential to check with your lender for specific details.
There is no set amount, but generally, the more you pay towards the principal, the greater your monthly payment reduction and interest savings. Some lenders may also have a minimum lump sum payment requirement.
Policies vary by lender, but many allow you to recast your mortgage multiple times over the life of the loan. However, fees and conditions may apply each time.
Recasting your mortgage does not typically affect your credit score since it does not involve taking out a new loan or altering your credit terms significantly.
Lenders usually require you to be current on your mortgage payments to qualify for a recast. It's best to discuss your situation with your lender to explore your options.
Once you make the lump sum payment and submit any required paperwork, it typically takes a few weeks for the new payment amount to take effect.
It depends on your lender's policies. Some lenders allow recasting for ARMs, while others do not. Check with your lender to confirm eligibility.
No, recasting reduces your monthly payments but keeps the original loan term intact.
Recasting does not typically have direct tax implications. However, consult with a tax professional for advice specific to your financial situation.
If you plan to sell your home in the near future, recasting might not be beneficial since the primary advantage is reduced monthly payments over the remaining loan term.
Mortgage recast calculators are typically designed for conventional loans. Government-backed loans such as FHA, VA, or USDA loans usually do not qualify for recasting.