Mortgage Recast Calculator

Use the Mortgage Recast Calculator

Your results

Current monthly payment: $0.00
New monthly payment after recast: $0.00
Monthly payment reduction: $0.00
Total interest saved: $0.00

How this calculator works

What it does: Estimate how a mortgage recast after a lump-sum principal payment could reduce your monthly payment and remaining interest cost.
Inputs used: The estimate uses current mortgage balance, annual interest rate (%), remaining loan term (years), lump sum recast payment, and recast fee.
Calculation approach: The calculator applies the relationships defined for the mortgage recast calculator to those inputs and updates current monthly payment, new monthly payment after recast, monthly payment reduction, and total interest saved.
How to read the result: Treat the result as a scenario based on the values entered. Compare a few reasonable inputs and consider costs, taxes, timing, or risks that the calculator does not include.

How to Use This Calculator

Enter Current mortgage balance and Annual interest rate (%) using values that match the scenario you want to evaluate.
Enter Remaining loan term (years) and Lump sum recast payment using values that match the scenario you want to evaluate.
Enter Recast fee using values that match the scenario you want to evaluate.
Review the assumptions for the mortgage recast calculator, especially rates, time periods, and optional amounts.
Select Calculate to update the results, then adjust one input at a time to compare scenarios.

Understanding the Results

Current monthly payment: The estimated payment or withdrawal amount produced by the current balance, rate, and time assumptions.
New monthly payment after recast: The estimated payment or withdrawal amount produced by the current balance, rate, and time assumptions.
Monthly payment reduction: The estimated payment or withdrawal amount produced by the current balance, rate, and time assumptions.
Total interest saved: The total interest saved estimated by the Mortgage Recast Calculator using current mortgage balance, annual interest rate (%), and remaining loan term (years) and the other values entered.

Common Mistakes

Entering an annual interest rate as a monthly rate, or leaving out fees and required payments.
Assuming the quoted monthly payment includes taxes, insurance, or other costs when it may cover principal and interest only.
Ignoring whether a payment is high enough to cover the interest added each month.
Comparing payments without also comparing payoff time and total cost.

Worked Example

Example inputs

Current mortgage balance: $350,000
Annual interest rate (%): 6.5%
Remaining loan term (years): 25
Lump sum recast payment: $50,000
Recast fee: $250

Example results

Current monthly payment: $2,363.23
New monthly payment after recast: $2,025.62
Monthly payment reduction: $337.60
Total interest saved: $51,031.07

For this illustrative scenario, the current monthly payment is $2,363.23. Changing any input can materially change the result, so use the example as a walkthrough rather than a guarantee.

Frequently asked questions

What is a mortgage recast?

A recast applies a lump-sum principal payment and recalculates the monthly principal-and-interest payment over the remaining term at the existing interest rate.

How is a recast different from refinancing?

A recast keeps the current loan, rate, and remaining term. Refinancing replaces the loan and may change the rate or term but usually involves more underwriting and closing costs.

Does a mortgage recast shorten the loan term?

Usually no. The scheduled remaining term stays the same while the required monthly payment falls. Continuing to pay the old amount could pay the loan off sooner.

How is interest saved calculated?

The calculator compares projected remaining interest before and after the lump-sum payment, then includes the recast fee in the post-recast cost.

Can every mortgage be recast?

No. Eligibility, minimum principal payments, fees, timing, and loan restrictions vary by lender and loan type. Confirm the actual terms with your mortgage servicer.

What does the Mortgage Recast Calculator calculate?

Estimate how a mortgage recast after a lump-sum principal payment could reduce your monthly payment and remaining interest cost. The result is based only on the inputs and assumptions shown on the page.

How should I interpret the new monthly payment after recast from the Mortgage Recast Calculator?

Use it as an estimate for the scenario entered, not as a guarantee or personal recommendation. Test changes to current mortgage balance, annual interest rate (%), and remaining loan term (years) to see which assumptions have the greatest effect.