Mortgage Recast Calculator

Use this free mortgage recast calculator to estimate how a lump-sum payment could lower your monthly mortgage payments.

A mortgage recast lets homeowners lower monthly mortgage payments without refinancing. Use our mortgage recast calculator to quickly estimate how a lump-sum payment could reduce your monthly payment and interest costs.

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What Is a Mortgage Recast?

A mortgage recast is a strategy where you make a lump-sum payment toward your mortgage principal and your lender recalculates the monthly payment based on the lower balance. Unlike refinancing, recasting does not change your interest rate or loan term — it simply reduces the required monthly payment by lowering the outstanding principal.

How the Mortgage Recast Calculator Works

The mortgage recast calculator estimates your new monthly payment after you apply an extra lump-sum payment to your balance. To use it you’ll enter:

  • Your current loan balance.
  • The lump-sum extra payment you plan to make.
  • Your annual interest rate.
  • Your remaining loan term (in years).

The tool will return your new loan balance and the recalculated monthly payment. This helps you visualize the immediate impact of a recast and decide whether it’s the best option for your situation.

Example: How a Recast Changes Payments

Here’s a simple example: Suppose your loan balance is $250,000, the interest rate is 4.5%, you have 25 years remaining, and you apply an extra $50,000. After recasting, your new balance would be $200,000 and your monthly payment would drop noticeably. Using a mortgage recast calculator makes this comparison fast and accurate.

Benefits of a Mortgage Recast

  • Lower monthly payments: A reduced principal produces a lower required monthly payment.
  • No refinancing required: Recasting typically needs less paperwork, no new rate negotiation, and no appraisal.
  • Keep your low rate: If your current rate is favorable, recasting preserves it while lowering payments.
  • Interest savings: With a smaller balance you pay less interest over the remaining life of the loan.

When to Use a Mortgage Recast Calculator

Consider running the mortgage recast calculator when:

  • You receive a financial windfall — bonus, inheritance, or large savings.
  • You want to lower monthly expenses without extending or refinancing your loan.
  • You prefer a quick administrative change over the time and closing costs of refinancing.

Limitations to Keep in Mind

Recasting is not a one-size-fits-all solution. Be aware of these limitations:

  • Lender restrictions: Not all lenders allow recasting; some loan types (for example many FHA, VA, USDA loans) may not be eligible.
  • Cash requirement: You need a meaningful lump-sum amount to make recasting worthwhile.
  • Fees: Lenders often charge a recast fee (typically modest compared to refinancing closing costs).
  • Term unchanged: Recasting typically does not shorten the loan term — it reduces payments while keeping the same schedule.

Recast vs. Refinance — Which Is Better?

Both strategies can reduce monthly payments but they work differently. Refinance replaces your current loan with a new loan (potentially lowering your rate but adding closing costs and paperwork). A recast keeps your loan’s existing rate and term and simply recalculates payments after a lump-sum principal reduction. Use a mortgage recast calculator to compare scenarios and determine which route gives you the most benefit after considering fees, cash on hand, and long-term savings.

Frequently Asked Questions

Does every lender offer mortgage recasting?
No — many government-backed loans do not permit recasting, while many conventional loans do. Always check with your lender.
How much do I need to recast my mortgage?
Minimums vary by lender. Many require at least $5,000–$10,000 in a lump sum, but check your servicer’s policy.
Will a recast affect my credit score?
No. A recast does not involve applying for a new loan, so your credit score is typically unaffected.
Can I recast more than once?
Some lenders allow multiple recasts, though each may carry a fee. Confirm with your lender before planning multiple recasts.

Ready to see your potential savings? Use the mortgage recast calculator above to enter your loan balance, extra payment, interest rate and remaining term — and get immediate results.