Mortgage Recast Calculator
Calculate your new monthly mortgage payment, interest savings, and re-amortization schedule after making a lump-sum principal payment without refinancing.
Lowers monthly payment by $277.23/month from $2106.96/mo.
Mortgage & Lump-Sum Parameters
Lowering Monthly Payments with a Mortgage Recast
A mortgage recast (also known as re-amortization) allows homeowners to make a lump-sum payment toward their principal balance and request that their lender re-calculate their remaining monthly payments based on the lower balance. Unlike a traditional mortgage refinance, a recast preserves your existing low interest rate, avoids thousands of dollars in closing costs and title fees, and requires zero underwriting or income verification.
High-Net-Worth Features
Instant Re-Amortization Math
Computes exact new principal & interest monthly payment based on your existing interest rate and remaining term.
Recast vs. Refinance Savings
Compares low lender recast administration fees ($150-$500) against $5,000-$10,000+ in refinance closing costs.
Remaining Lifetime Interest Reductions
Quantifies tens of thousands of dollars in cumulative interest avoided over the remaining loan duration.
Side-by-Side Payment Comparison
Clear visual comparison of current monthly payment versus new recasted monthly cash flow.
Lender Minimum Threshold Warnings
Highlights common servicer requirements (typically $5,000 to $10,000 minimum lump-sum payment).
Custom Lump-Sum Scenarios
Test bonuses, home sale proceeds, or inheritance capital allocations in real-time.
Tax & Financial Planning Scenarios
- ✓Homeowners with Low Locked Rates (2%-4%)
Lower monthly overhead using cash windfalls without losing generational low-rate fixed mortgages to today's 6%-7% market rates.
- ✓Transitioning Homebuyers
Recast your new home purchase after your previous home closes, injecting the equity proceeds to lower debt service.
- ✓Inheritance or Annual Bonus Deployment
Permanently improve monthly household cash flow by reducing non-negotiable living expenses.
- ✓Real Estate Investors
Improve debt-service coverage ratios (DSCR) on rental assets to increase monthly net cash-on-cash yield.
Frequently Asked Questions
How does a mortgage recast work?
When you recast, you pay a lump sum (usually at least $5,000 to $10,000) directly toward your principal balance. Your lender then re-amortizes the remaining loan balance over the remaining term at your current interest rate, reducing your required monthly payment.
Does a mortgage recast shorten the loan term?
No. A recast keeps your exact original maturity date (for example, 24 years remaining on a 30-year mortgage). Instead of paying the loan off early, your monthly payment drops while maintaining the original timeline.
How much does a mortgage recast cost?
Most lenders charge a small administrative fee between $150 and $500 to process a recast. There are no title searches, appraisals, or closing costs involved.
Can all mortgages be recasted?
Most Conventional conforming loans backed by Fannie Mae and Freddie Mac qualify for recasting. However, FHA, VA, and USDA government-backed loans generally do not permit recasting under federal guidelines.
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