What is a Mortgage Recast Savings Calculator?

A Mortgage Recast Savings Calculator helps homeowners estimate how much they can save on monthly mortgage payments after making a lump sum payment toward the principal balance of their loan. Instead of refinancing, recasting keeps your existing loan but recalculates your monthly payment based on the reduced balance.

How Mortgage Recasting Works

Mortgage recasting involves making a large payment toward the principal balance of your mortgage. After this payment, the lender recalculates your monthly payment using the new lower balance while keeping the same interest rate and loan term.

• You make a lump sum payment toward your mortgage.
• The lender recalculates the monthly payment.
• The interest rate stays the same.
• Your monthly payment becomes lower.

Benefits of Mortgage Recasting

• Lower Monthly Payments: Your monthly payment decreases after recasting.
• No Credit Check: Unlike refinancing, recasting usually doesn't require credit approval.
• No New Loan: You keep the same mortgage.
• Lower Interest Cost: Paying down principal reduces total interest paid.

Example of Mortgage Recast Savings

For example, if your mortgage balance is $300,000 with a 6% interest rate and you make a lump sum payment of $50,000, the new balance becomes $250,000. After recasting the loan, your monthly payment is recalculated based on the new balance, reducing your monthly mortgage cost.

Mortgage Recast vs Refinance

When Should You Recast Your Mortgage?

• When you receive a large bonus or inheritance.
• When you want lower monthly payments without refinancing.
• If your current mortgage interest rate is already low.
• After selling another property.

Frequently Asked Questions

Does recasting reduce the loan term?

No. Mortgage recasting reduces the monthly payment but keeps the same loan term.

Do all lenders allow mortgage recasting?

No. Some lenders do not offer recasting, so you should check with your lender.

Is there a fee for mortgage recasting?

Some lenders charge a small administrative fee, typically between $150 and $500.