Mortgage Recast Calculator
Lower your payment with a lump sum
- Interest saved by recastingsame payoff date
- $51,281
- After the recast fee
- $51,031
- Fee paid back infrom the lower payment
- 1 mo
- Prepay without recastingsame payment, loan ends early
- $135,615 saved
- Time saved if you prepay instead
- 9 yr 1 mo
Free to compare. No obligation.
Estimate. Your servicer decides whether your loan can be recast, the minimum lump sum and the fee. We may earn a commission when you click. It does not change your estimate. How we calculate · How we make money
Would a lower rate save more?
A recast keeps your rate. If rates have dropped since you got your loan, compare refinance offers too.
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What a mortgage recast does
A recast, or re-amortization, lets you pay a lump sum toward your principal and have your lender recalculate the payment on the lower balance. Your rate and payoff date stay the same, but the monthly payment drops. There's no new loan, no credit check and usually only a small fee, which makes it much cheaper than refinancing.
In the example, paying $50,000 on a $250,000 balance at 6.5% with 25 years left lowers the payment by about $338 a month and saves about $51,000 in interest over the remaining term.
Recast vs. prepaying
If you make the same lump-sum payment without recasting, your payment stays the same and the loan ends years early instead. That usually saves more interest, because the full payment keeps going toward a smaller balance. A recast is better when you want a lower required payment for breathing room. The calculator shows both.
Who can recast
- Most conventional loans allow a recast, though each servicer sets its own rules.
- FHA, VA and USDA loans generally can't be recast.
- Servicers often require a minimum lump sum, such as $5,000 or $10,000, and a history of on-time payments.
- A recast is common after selling a previous home, when the sale proceeds arrive after you've bought the new one.
Call your servicer to ask whether your loan qualifies, the minimum lump sum and the fee. To compare extra payments over time, try the mortgage payoff calculator.
Frequently asked questions
What is a mortgage recast?
You pay a lump sum toward your principal and your lender recalculates the monthly payment on the lower balance. The rate and payoff date stay the same. There's no new loan and usually only a small fee.
Is it better to recast or pay extra on the mortgage?
Prepaying without a recast saves more interest and pays the loan off sooner, because your payment stays the same. Recasting is better when you want a lower required payment. In the example, the same $50,000 saves about $51,000 with a recast and more if you keep the old payment.
How many times can you recast a mortgage?
It depends on the servicer. Some allow a recast once a year or a few times over the loan, and most set a minimum lump sum. Ask your servicer.
Can you recast an FHA or VA loan?
Generally no. Recasting is mostly offered on conventional loans. With a government-backed loan, extra principal payments shorten the loan instead.