Mortgage Recast Calculator
A mortgage recast lets you make a large lump-sum principal payment, then re-amortize the lower balance over the same remaining term — lowering your monthly payment while keeping your rate and payoff date. See how much your payment would drop.
Your details
- Current monthly payment
- $1,932.90
- Monthly saving
- $322.15
- New balance
- $250,000.00
New payment vs saving
- New payment
- $1,610.7583%
- Monthly saving
- $322.1517%
Formula
The payment is recomputed on the reduced balance: M = P·r(1+r)^n / ((1+r)^n − 1), where P is the balance after the lump sum, r the monthly rate, and n the remaining number of payments. Unlike extra payments (which shorten the term), a recast keeps the term and cuts the monthly amount.
Frequently asked questions
How is a recast different from refinancing?⌄
A recast keeps your existing loan, rate, and term — it just lowers the payment after a lump-sum principal reduction, usually for a small fee. Refinancing replaces the loan entirely, with new closing costs and possibly a new rate.
Does a recast save on interest?⌄
Yes — because the balance is lower, you pay less total interest. But since the term stays the same, the monthly relief is the headline benefit; paying extra without recasting saves more interest by shortening the term.
Sources & methodology
Re-amortizes the balance after the lump sum over the same remaining term at the same rate. Excludes recast fees and escrow. Confirm your lender allows recasting.
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