Move Up Home Mortgage Recast on $550,000 at 4.75% With $20,000 Lump Sum

Calculated answer

$3,554.23

The required monthly payment drops from about $3,554.23 to $3,424.99, reducing the payment by roughly $129.24 per month while keeping the same remaining term.

Current monthly payment: $3,554.23
New monthly payment: $3,424.99
Monthly payment reduction: $129.24
Estimated total interest saved: $10,768.73

How This Mortgage Recast Example Works

Recast payment lowers the principal balance, then the mortgage payment is recalculated over the existing remaining term

The page uses the shared Mortgage Recast Calculator assumptions, holding the interest rate and remaining term constant while applying a lump-sum principal reduction.

Start with a remaining mortgage balance of $550,000.
Subtract the $20,000.00 lump-sum recast payment from principal.
Recalculate the monthly payment at 4.75% over the remaining 20 years.
Include the $250.00 recast fee when estimating the total interest-saved effect.

Scenario Summary

Metric	Value
Current mortgage balance	$550,000.00
Interest rate	4.75%
Remaining loan term	20 years
Lump-sum recast payment	$20,000.00
Recast fee	$250.00
Current monthly payment	$3,554.23
New monthly payment	$3,424.99
Monthly payment reduction	$129.24
Estimated total interest saved	$10,768.73

What this recast scenario is useful for

Mortgage recasts are most useful when the goal is a lower required payment without replacing the mortgage entirely through a refinance.

Worked examples help show the tradeoff between sending a large lump sum today and the monthly cash-flow relief that follows.

How to use this result

Compare the payment reduction here with what that same lump sum could do if used for investing, an emergency reserve, or a refinance alternative.

Use the full calculator if you need to test a different remaining term, interest rate, or recast fee structure.

Run Your Own Mortgage Recast Scenario

Use the calculator to change the remaining balance, rate, term, lump sum, and recast fee.

Open the Mortgage Recast Calculator Browse All Mortgage Recast Examples

Move Up Home Mortgage Recast on $450,000 at 4.75% With $20,000 Lump Sum $450,000 balance, $20,000.00 recast payment, 20 years remaining. Move Up Home Mortgage Recast on $650,000 at 4.75% With $20,000 Lump Sum $650,000 balance, $20,000.00 recast payment, 20 years remaining. Move Up Home Mortgage Recast on $750,000 at 4.75% With $20,000 Lump Sum $750,000 balance, $20,000.00 recast payment, 20 years remaining. Move Up Home Mortgage Recast on $550,000 at 5% With $30,000 Lump Sum $550,000 balance, $30,000.00 recast payment, 20 years remaining.

Mortgage Recast Calculator Change the remaining balance, rate, remaining term, lump sum, and recast fee. Mortgage Payoff Calculator Compare a recast with a strategy that keeps the original payment and accelerates payoff. Refinance Calculator Compare a recast with replacing the existing mortgage altogether.

How to Use the Mortgage Recast Calculator Learn when a recast may make sense versus paying down principal without recalculating the payment. Mortgage and Home Buying Guide Hub See mortgage recasts alongside payoff, refinance, affordability, and closing-cost planning.

Frequently Asked Questions

Does a recast change the mortgage interest rate?

No. A recast generally keeps the same mortgage and interest rate while recalculating the payment after a principal reduction.

How is this different from a refinance?

A refinance replaces the loan, while a recast keeps the current loan and simply recalculates the payment over the remaining term.

Why can a recast lower the payment?

The lump-sum payment reduces principal, so the amortized payment required over the remaining term falls as well.

Does this page include taxes and insurance?

No. It focuses on principal-and-interest mortgage payment changes only.