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Home loans

Mortgage Recast Calculator

See your new, lower monthly payment after a lump-sum principal payment — same rate, same payoff date, just a smaller bill each month.

InputsRECAST
$
$
%
yr
New monthly payment−$269/mo
$1,813/mo
payment before recast$2,082/mo
monthly savings$269/mo
new balance$270,000
interest saved
$47,039
lump sum
$40,000
same payoff
27 yr

How a recast lowers your payment

When you recast, the lender applies your lump sum to the balance and then re-amortizes the smaller balance over your remaining term at the same rate. Because the loan now has to repay less principal over the same number of months, the required monthly payment falls.

new payment = amortize( balance − lump sum , same rate , same remaining term )

This is the key difference from making extra payments: extra payments keep your payment the same and end the loan early; a recast keeps the end date the same and shrinks the payment. A recast typically costs a small servicer fee and requires a minimum lump sum.

Common questions

What is a mortgage recast?
A recast (or re-amortization) is when you make a large lump-sum payment toward principal and your lender recalculates your monthly payment over the remaining term. Your interest rate and payoff date stay the same — only the monthly payment drops.
Recast vs. refinance — what's the difference?
A refinance replaces your loan with a new one at a new rate and term, with closing costs and underwriting. A recast keeps your existing loan and rate untouched; you just pay down principal and get a smaller payment for a small fee (often $150–$500). No credit check, no appraisal.
Is it better to recast or pay extra?
Paying extra keeps your payment the same and shortens the term — you finish sooner and save the most interest. Recasting keeps the same payoff date but lowers your required payment, improving monthly cash flow. Choose recast for flexibility, extra payments for the biggest interest savings.
Does recasting save interest?
Yes — reducing the principal means less interest accrues over the remaining term. But because a recast stretches the smaller balance over the full remaining term (rather than finishing early), it saves less total interest than applying the same lump sum as extra payments would.

How we calculate this

We re-amortize your balance minus the lump sum over the same remaining term and rate, then compare payments and remaining interest. Excludes the servicer's recast fee. Planning estimates only — not financial advice.

Full methodology & sources →
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Estimates for general informational purposes only and not financial advice. Not all loans are eligible to recast (many government-backed loans aren't), and minimums and fees vary by servicer. Confirm terms with your lender.