Mortgage Recast Calculator
See your new monthly payment and interest savings after a lump sum payment.
How to use this calculator
Enter your current outstanding balance, the lump sum you plan to pay, your loan's interest rate, and the years remaining on your term. The calculator instantly shows your new amortized monthly payment and total interest saved — no refinancing, no closing costs.
What is a mortgage recast?
A mortgage recast (also called re-amortization) is when you make a large lump-sum payment toward your principal and ask your lender to recalculate your monthly payment. Your interest rate and remaining term stay the same — only your payment drops. Unlike refinancing, there are no closing costs and no credit check.
How much do you need for a mortgage recast?
Most lenders require a minimum lump sum of $5,000 to $10,000 to qualify for a recast. Some set the floor as a percentage of your remaining balance (typically 10%). Check with your lender before applying — not all loan types (FHA, VA) allow recasting.
How is recasting different from refinancing?
Refinancing replaces your loan entirely with a new one, often at a new rate. This involves closing costs, a credit check, and an appraisal — usually $3,000–$6,000 in fees. Recasting keeps your existing loan and rate; you just pay a small administrative fee ($150–$500). If you have a good rate and don't want new paperwork, recasting wins.
Does recasting shorten my loan term?
No. Your remaining term stays exactly the same — the loan just costs less each month. If you want to pay off your home faster, you can continue making your original higher payment after the recast, and the extra goes straight to principal.
When does a mortgage recast make sense?
A recast is ideal if you recently received a large windfall (inheritance, bonus, home sale proceeds) and want to lower your monthly obligations without changing your rate. It also works well if you bought a new home before selling the old one and have cash freed up after closing.
How do lenders calculate the new payment after a recast?
Lenders use standard amortization: they subtract your lump sum from the current principal, then apply the original interest rate over the remaining term to compute your new monthly payment. This calculator uses the same formula, so your result should match your lender's quote closely.