Mortgage Recast Savings Calculator
Estimate how much you save on monthly payments after a lump-sum payment — without refinancing.
Loan Details
Results
Table of Contents
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. Instead of refinancing, recasting keeps your existing loan but recalculates your monthly payment based on the reduced balance.
How Mortgage Recasting Works
- 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 — payment decreases after recasting.
- No Credit Check — unlike refinancing, no credit approval needed.
- No New Loan — keep the same mortgage and interest rate.
- Lower Interest Cost — paying down principal reduces total interest.
Example
If your mortgage balance is $300,000 at 6% and you make a lump sum of $50,000, the new balance is $250,000. Your monthly payment is recalculated on the lower balance — lowering your EMI immediately. Use our Mortgage Recast Calculator for a full breakdown.
Mortgage Recast vs Refinance
| Feature | Mortgage Recast | Refinance |
|---|---|---|
| New Loan Required | No | Yes |
| Credit Check | No | Yes |
| Closing Costs | Low ($150–$500) | High (2–5% of loan) |
| Interest Rate Change | No | Possible |
Frequently Asked Questions
Does recasting reduce the loan term?
No. Mortgage recasting reduces the monthly payment but keeps the same loan term and interest rate.
Do all lenders allow mortgage recasting?
No. Check with your lender — some do not offer recasting, and FHA/VA/USDA loans are generally not eligible.
Is there a fee for mortgage recasting?
Some lenders charge a small administrative fee, typically between $150 and $500.