Mortgage Recast Calculator

How the Mortgage Recast Calculator Works

A recast keeps your loan and rate but lowers the payment. You make a large lump-sum payment toward principal, and the lender re-amortizes the smaller balance over the remaining term. The rate and payoff date stay the same; only the monthly payment drops. On a $300,000 balance at 6% with 25 years left, paying $50,000 down cuts the payment from about $1,933 to $1,611 — roughly $322 a month.

A recast usually costs a small fee (a few hundred dollars) and is far cheaper than refinancing, with no new closing costs or credit check. It makes sense when you have a lump sum and a good rate you want to keep. It doesn’t shorten the term — it lowers the payment.

new payment = (balance − lump sum) re-amortized over the remaining term