Mortgage Recast Calculator
Calculate your new monthly mortgage payment after a recast. A lump-sum payment re-amortizes your loan at the same rate and term for ~$250 — compare recast vs refinance vs extra payments.
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New Monthly Payment After Recast
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Extended More scenarios, charts & detailed breakdown ▾
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Current Monthly Payment
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New Monthly Payment After Recast —
Monthly Savings —
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Professional Full parameters & maximum detail ▾
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Recast Analysis
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Recast: Monthly Savings —
Recast: Break-Even (months) —
Refinance Comparison
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Refi: Monthly Savings —
Refi: Break-Even (months) —
Decision
Better Option (5-year horizon) —
How to Use This Calculator
- Enter your current loan balance, lump sum payment, interest rate, and remaining months.
- See your new monthly payment and monthly savings instantly.
- Use Recast vs Extra Payments tab to compare both strategies with the same lump sum.
- Use Professional to compare recast side-by-side with a refinance at current market rates.
Formula
New Monthly Payment = (Balance − Lump Sum) × r × (1+r)^n / ((1+r)^n − 1)
where r = monthly rate, n = remaining months (same as original remaining term)
The key distinction: n does NOT reset — you keep your existing payoff date.
Example
$280,000 balance, $30,000 lump sum, 6.5% rate, 300 months remaining. Old payment: $1,878. New balance: $250,000. New payment after recast: $1,677. Monthly savings: $201. Recast fee $250 recovered in just 2 months.
Frequently Asked Questions
- A mortgage recast (also called re-amortization) is when you make a large lump-sum payment toward your principal and the lender recalculates your monthly payment over the remaining term at the same interest rate. Unlike refinancing, a recast keeps your existing rate and term but lowers your monthly payment. The fee is typically only $150-$250.
- An extra payment reduces your balance and shortens your payoff date, but keeps the same monthly payment. A recast reduces your balance AND lowers your monthly payment — but keeps the same payoff date. Choose extra payments to pay off faster; choose recast to free up monthly cash flow.
- Refinancing creates a new loan with a new rate and term, typically costing $4,000-$8,000 in closing costs. A recast modifies your existing loan, keeping your rate and remaining term, for a flat fee of ~$250. If interest rates have risen since you got your mortgage, a recast is superior to refinancing.
- Most lenders require a minimum lump-sum payment of $5,000-$10,000. Conventional, FHA, VA, and jumbo loans all allow recasting, though servicer policies vary. You must be current on your payments. Government loans (FHA/VA) allow recasting but you should confirm with your servicer.
- A recast is ideal when: (1) you receive a windfall (inheritance, bonus, home sale proceeds) and want lower monthly payments, (2) interest rates have risen so refinancing is not attractive, (3) you want to reduce housing costs without resetting your payoff date.
Related Calculators
Sources & References (5) ▾
- CFPB — Mortgage Recasting Guide — Consumer Financial Protection Bureau
- Fannie Mae Selling Guide — Loan Modification and Recasting — Fannie Mae
- FHA Single Family Housing Policy Handbook — Federal Housing Administration
- Bankrate — Mortgage Recast Explained — Bankrate
- NerdWallet — Mortgage Recast vs Refinance — NerdWallet