Mortgage Recast Calculator
Calculate the impact of making a lump sum payment to recast your mortgage, including new monthly payment, interest savings, and recast fee analysis.
Published by:
isCalculator Editorial Team
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How to use this tool?
How to Use the Mortgage Recast Calculator
- Enter Current Mortgage Balance – The remaining principal amount you owe (e.g., $250,000).
- Enter Current Interest Rate – Your annual interest rate as a percentage (e.g., 4.5 for 4.5%).
- Enter Remaining Term – The number of months left on your loan (e.g., 300 for 25 years).
- Enter Lump Sum Payment – The extra amount you plan to pay toward the principal (e.g., $50,000). This cannot exceed your current balance.
- Enter Recast Fee (optional) – Any fee charged by the lender for recasting (e.g., $250). Defaults to $0 if left blank.
- Click "Calculate Recast" – The tool will compute your new monthly payment, new balance, total interest saved, and net savings after the fee.
What the Results Mean:
- New Monthly Payment – Your reduced payment after applying the lump sum.
- New Balance – The remaining principal after the lump sum.
- Total Interest Saved (before fee) – The difference in total interest paid over the remaining term.
- Net Savings – Interest saved minus the recast fee.
Note: All monetary values are in US dollars. Ensure inputs are positive numbers (term must be a whole number of months).
Previous Results
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Frequently Asked Questions
Mortgage recasting is a process where you make a lump sum payment toward your principal, and the lender recalculates your monthly payment based on the new balance and the same interest rate and remaining term. It does not change your interest rate or loan term.
The new monthly payment is calculated using the standard amortization formula with the reduced principal (current balance minus lump sum), the same annual interest rate, and the same remaining number of months.
No. Recasting only reduces the principal and recalculates payments, while refinancing replaces your loan with a new one, potentially with a different rate or term. Recasting usually has a lower fee than refinancing.
