Mortgage Recast Calculator

If you recast your mortgage, you can make a big payment down the principal on your loan. This lowers your balance and monthly payments without changing your interest rate or loan duration. You can also try our Mortgage Recast Calculator to estimate your new monthly payment instantly based on your remaining balance, interest rate, and lump sum payment.

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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 of the loan. After the payment is made, 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

Our mortgage recast calculator helps you estimate how much your monthly payment could decrease after making a lump sum payment toward your loan. Simply enter your remaining balance, current monthly payment, interest rate, and the amount you want to pay toward the principal. The calculator will instantly estimate your potential savings.

Benefits of Mortgage Recasting

  • Lower monthly mortgage payments
  • No need to refinance the loan
  • Keep your existing interest rate
  • Reduce the loan balance faster
  • Usually lower fees compared to refinancing

Example of Mortgage Recasting

For example, if your remaining mortgage balance is $200,000 and you make a lump sum payment of $20,000 toward the principal, the new balance becomes $180,000. Your lender then recalculates your monthly payment based on the reduced balance, which lowers your monthly mortgage payment.

Mortgage Recast Calculator FAQ

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 interest rate or loan term.

How much does mortgage recasting cost?

Most lenders charge a small administrative fee to recast a mortgage. This fee typically ranges from $150 to $500 depending on the lender.

Does recasting change the interest rate?

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

When should you consider mortgage recasting?

Mortgage recasting can be useful when you receive extra funds such as a bonus, inheritance, or savings and want to reduce your monthly mortgage payment without refinancing your loan.