Mortgage recast calculator
A recast applies a lump sum to your principal and re-amortizes the loan over the payments you have left. Same rate, same payoff date, smaller payment — no new loan, no new closing costs. Enter your loan below to see the new payment and what the lump sum saves you.
Your loan
After the recast
| Measure | Now | Recast |
|---|---|---|
| Principal balance | $450,000 | $400,000 |
| Principal & interest payment | $2,950 | $2,622 |
| Months left | 27 yr | 27 yr |
| Remaining interest | $505,799 | $449,599 |
| Cash out of pocket | $0 | $50,250 |
Paying $50,000 plus a $250 fee drops the payment by $328 a month and takes $56,200 of interest off the loan. Your rate and payoff date do not change.
Same lump sum, no recast
If you send the same $50,000 to principal but keep paying $2,950, the loan is gone in 20 yr 5 mo instead of 27 yr — about 6 yr 7 mo earlier — and you pay $324,116 of interest, $125,483 less than the recast. Skipping the recast saves more interest; recasting frees up cash every month. Pick based on which you need.
How a mortgage recast works
You send your servicer a lump sum toward principal and ask for a re-amortization. The servicer recalculates the payment on the lower balance across the months you have left, charges a small fee, and everything else about the loan stays put: the interest rate, the term, the escrow arrangement, the note itself. There is no application, no appraisal, no credit pull and no closing costs — which is what separates a recast from a refinance.
Recast vs refinance vs extra payments
- Recast — lowers the payment at your current rate for a fee of a few hundred dollars. Best when you have cash on hand and your rate is already better than today's market.
- Refinance — a new loan at a new rate with full closing costs. Worth it when today's rates are meaningfully below yours, or you need to change the term or pull equity.
- Extra principal payments — no fee, saves the most interest, and shortens the loan. The payment never drops, so it does nothing for monthly cash flow.
Who can recast a mortgage
Recasting is a servicer policy rather than a legal right. Most conventional loans owned by Fannie Mae or Freddie Mac allow it after a minimum lump sum, commonly $5,000 or 10% of the balance, and after a period of on-time payments. FHA, VA and USDA loans generally do not permit recasting, and jumbo and portfolio loans vary lender by lender. Call your servicer, ask for "re-amortization after a principal curtailment," and confirm the minimum, the fee and the timing before you send the money.