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Mortgage Recast Calculator

Got a lump sum to put toward the house? A recast lowers your payment for a small fee while keeping your rate. Enter your loan and we'll compare recasting against refinancing and against simply paying the money in.

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Please fill in all fields. The lump sum must be smaller than the loan balance.
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The refinance you'd compare against

Even if you're leaning recast, it's worth knowing what a refinance would do. Enter the best rate you could get today.

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This matters more than most people think. Refinance closing costs need time to pay for themselves.
Please enter the refinance rate and closing costs (0 is fine).

A mortgage recast is the least known tool in the homeowner's toolbox, and for people who locked in a low rate it is often the best one. You put a lump sum toward your principal, pay a small fee, and your lender recalculates your monthly payment on the smaller balance. Same rate, same payoff date, lower payment.

Recast vs refinance: the short version

Refinancing replaces your loan. That's worth doing when today's rates are meaningfully below yours, but it costs thousands in closing costs and resets your term. Recasting keeps your loan exactly as it is and costs a few hundred dollars at most. The rule of thumb: if your current rate is at or below what you could refinance into, recast and don't look back. If rates have dropped well below your rate, run the comparison above; the deciding factor is usually how long you'll keep the home, because closing costs need years of payment savings to pay for themselves.

The third option people forget

You can also just make the lump-sum payment without recasting. Your required payment stays the same, so the loan pays off years early and you save the most total interest of any option. The trade-off is that your monthly obligation doesn't drop. Recast when you want breathing room in the budget; plain prepayment when you want the mortgage gone.

Who can recast

Conventional loans backed by Fannie Mae or Freddie Mac can usually be recast. FHA, VA, and USDA loans generally cannot, so if you have one of those, your choices are plain prepayment or a refinance. Most lenders require a minimum lump sum, commonly $5,000 to $10,000, and a loan in good standing. Call your servicer and ask for their recast requirements; it's usually one form and one fee.

A worked example

Take a $400,000 balance at 6.5% with 25 years left, and a $50,000 lump sum. Recasting drops the payment by roughly $340 a month for a $300 fee. Refinancing the same balance at 6% for 30 years drops the payment further, but after $8,000 in closing costs it takes years to come out ahead, and only if you stay in the house. Run your own numbers above; the answer changes a lot with the rate gap and your time horizon.

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Common Questions

What is a mortgage recast?
A mortgage recast is when you make a large lump-sum payment toward your principal and your lender re-amortizes the remaining balance over the time left on your loan. Your interest rate and payoff date stay exactly the same, but your required monthly payment drops. Lenders typically charge a small fee, usually between $150 and $500.
What is the difference between recasting and refinancing?
A recast keeps your existing loan, rate, and payoff date; you just pay down the balance and the lender recalculates the payment for a small fee, with no credit check or appraisal. A refinance replaces your loan entirely with a new rate and term, and typically costs thousands in closing costs. Refinancing mainly makes sense when the new rate is meaningfully lower than your current one; if you already have a low rate, a recast usually wins.
Should I recast or just pay extra principal?
The same lump sum reduces your balance either way. If you simply prepay without recasting, your required payment stays the same, so you pay the loan off years earlier and save the most total interest. If you recast, your required payment drops but the payoff date stays the same, so you pay somewhat more total interest in exchange for monthly breathing room. Choose recast when you want a lower payment, choose plain prepayment when you want the loan gone sooner.
Can every mortgage be recast?
No. Conventional loans backed by Fannie Mae or Freddie Mac can usually be recast. FHA, VA, and USDA loans generally cannot. Jumbo loans depend on the lender. Most lenders also require a minimum lump sum, commonly $5,000 to $10,000, and that the loan be current.
How much does a mortgage recast cost?
Most lenders charge a flat fee between $150 and $500, and some do it for free. There is no appraisal, no credit check, and no closing process, which is why recasting is dramatically cheaper than refinancing.
Does recasting change my interest rate or payoff date?
No. Your rate and your final payoff date stay exactly as they were. The only thing that changes is your required monthly payment, which is recalculated on the smaller balance over the same remaining term.