Mortgage Recast Calculator
A recast lowers your monthly payment after you make a large lump-sum payment toward the loan. The rate and the time left stay the same, and the payment is worked out again on the smaller balance. This shows the new payment.
- Free
- Works offline after your first visit
- Saves on this device
- No sign-up
- Updated
How it works
Subtract the lump sum from the balance to get the new amount owed. Then use the standard loan payment formula on that amount, with the same rate and the same number of months left.
Many lenders charge a fee for a recast, and not every loan allows one. The fee is not included here, so check it with your lender.
Worked example
With $300,000.00 owed, a lump sum of $25,000.00 brings the balance down. At the same rate over 300 months, the payment drops from $1,979.01 to $1,814.09 a month, a saving of $164.92 a month.
Questions
How is a recast different from refinancing?
A recast keeps your rate and end date and only resets the payment. Refinancing replaces the loan with a new one, usually with new fees and terms.
Does a recast lower the total interest?
Yes, because less is owed from that point on. The exact saving depends on the rate and the months left.
Will every lender allow a recast?
No. Ask your lender whether your loan allows one and what it costs.
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