Mortgage Recasting Calculator

This mortgage recasting calculator estimates how a mortgage recast can reduce your monthly payment and interest costs over the life of your mortgage. Select your balance and interest rate below, then click 'Next' to continue.

What is your mortgage balance?    More Info
Select your current mortgage principal balance rounded to the nearest $1,000.
Mortgage Balance:
What is your interest rate?    More Info
Select your current interest rate rounded to the nearest 0.125%.
Interest Rate:

For informational purposes only. is not a mortgage lender or broker. Please get a formal quote from a qualified professional before making any financial decisions. This calculator may contain affiliate links through which we may receive compensation at no extra cost to you.

Welcome! You’ve found one of the best recasting mortgage calculators online. Use our calculator to quickly and easily estimate your new monthly payment and total interest savings after recasting your mortgage.

A mortgage recast is a great way to save interest and reduce your monthly mortgage payment without going through the paperwork and hassle of a refinance. We’ll explain what a recast is, how it works, and how to use our recast mortgage calculator to estimate your potential savings.

What is a Mortgage Recast?

A mortgage recast refers to the process of recalculating the payment and remaining payment schedule of your mortgage without changing the interest rate or loan term. A recast is also known as mortgage reamortization.

The purpose of a recast is to reduce your loan amount and monthly payment while maintaining your original loan term. This is beneficial for homeowners who have a large lump sum of money available and want to use it to reduce their monthly mortgage payments without going through a refinance.

Here’s how a recast typically works:

  1. Lump sum payment: You make a large one-time lump sum payment on your mortgage principal balance.
  2. Payment recalculation: Your lender recalculates your monthly payment based on the reduced loan balance and remaining loan term.
  3. Lower payments: You pay the new reduced payment for the remainder of the loan term.

Note that a mortgage recast is not a refinance. When you refinance, you replace your existing mortgage with a new mortgage that likely has a different interest rate and loan term. You’ll also pay closing costs and be subject to the usual income and credit requirements and documentation.

Most lenders offer a recast mortgage option, but qualifying requirements may differ from one lender to another. Your lender may have a minimum lump sum requirement and/or may charge a small recasting fee to cover their processing expenses.

A Recast Example

To see how this works, let’s look at a mortgage recast example. Let’s assume you took out a 5.50% 30-year fixed mortgage for $250,000 two years ago. Your principal and interest payment is $1,419/month.

After two years of regular monthly mortgage payments, your principal balance is now $243,075.

Let’s also assume that you recently received an inheritance of $100,000 and would like to pay down your mortgage and recast the payment. You talk with your lender and discover that they can do it for a fee of $250.

Using our recasting mortgage calculator, we can estimate your new monthly payment and loan balance once the recast is complete:

Before RecastAfter Recast
Principal balance:$243,075$143,325
Years left on mortgage:2828
Principal & interest payment:$1,419$837

As you can see, the recast mortgage payment is $582 less than the original payment. That’s a huge monthly savings!

You can still make extra payments and pay the loan off faster, but you don’t have to. Even if you make no extra payments, the recast saves around $95,000 in interest over the life of the loan.

Why Do a Mortgage Recast?

Is recasting a mortgage a good idea? Depending on your goals, it can be a great idea! If you have extra cash from a bonus, inheritance, sale of another property, etc., a recast enables you to significantly reduce your monthly mortgage payment without refinancing your mortgage.

For example, if you pay a large lump sum toward your current mortgage balance, your payment won’t change. You’ll still be paying the same amount every month, but the interest part of the payment will be smaller and the principal part of the payment will be larger.

That’s certainly not a bad thing because you’re paying off the mortgage faster and saving yourself a lot of interest.

But what if you really need a lower mortgage payment? A recast reduces your mortgage payment without the hassle, paperwork, and expenses of a refinance.

This can be especially advantageous if your interest rate is lower than prevailing interest rates. You don’t need to refinance at a potentially higher rate to reduce your payments.

The one potential downside of a recast is that you lock up a lot of cash in your home. Yes, the lower payment is nice, but once you pay that lump sum, that cash is no longer usable for something else.

If you’re concerned about that, you may want to look into a home equity line of credit (HELOC). A HELOC enables you to borrow against your home equity on a revolving basis if you need to.

How To Use Our Recasting Mortgage Calculator

This recast mortgage calculator is pretty easy to use, but we’ve included some instructions if you need help.

Step 1 – Balance and Interest Rate

The first step to calculate the recasting of your mortgage is to enter the basic calculation parameters. Enter each of the following values into the fields on the first page:

  • Current Principal Balance – Enter your current mortgage principal balance.
  • Annual Interest Rate – Enter your current mortgage interest rate.

Once you’ve entered the above information, click Calculate.

Step 2 – Mortgage Payment and Years Left

  • Current Principal & Interest Payment – Enter your current principal and interest payment (not including property charges like taxes and homeowner’s insurance).
  • Years Left on the Loan – Enter the number of years left on your loan.

Once you’ve entered the above information, click Calculate.

Step 3 – Pay Down Amount and Recast Fee

  • Lump Sum Pay Down Amount – Enter how much you plan to pay down your mortgage as part of the recast.
  • Recast Fee – Enter how much your lender will charge to process the recast.

Once you’ve entered the above information, click Calculate.

Step 4 – Confirm and Calculate

Confirm the information you’ve entered is correct, then click Calculate.

IMPORTANT: The calculation results are only as good as the information you enter. Please make sure you’ve entered accurate information into the mortgage recasting calculator.

Step 5 – Calculation Results

Once you click Calculate, the Calculation Results page will load. On the mortgage recasting calculator results page, you’ll see an estimate of your new loan balance, monthly mortgage payment, and lifetime interest savings.

NOTE: If the mortgage recast calculator results don’t show that you’re saving money on your payment and lifetime interest, go back and recheck the information you entered. A recast should always result in payment and interest savings.

Frequently Asked Questions

How do you calculate recast payment?

The easiest way is to use a free recast mortgage calculator like we have on this webpage.

Is it better to pay down principal or recast?

Paying down principal is done as part of a recast. If you have a low interest rate, it doesn’t make sense to pay down your mortgage, then refinance for a higher rate to reduce your payment. It makes more sense to pay down the mortgage, then have your lender recalculate (or “recast”) the payment on the reduced loan amount. Check out our mortgage recast calculator on this page to see how a recast could work for you.

What are the disadvantages of mortgage recast?

The main disadvantage of paying down and recasting your mortgage is that you don’t shorten your payoff time. The purpose of a mortgage recast is to pay down your mortgage, then recalculate your payment on the reduced loan balance over the same remaining loan term you already have. However, you can always make extra payments to pay off the loan faster. Check out our recast mortgage calculator on this page to see how a recast could work for you.

Does it cost anything to recast a mortgage?

Most lenders typically charge at least a few hundred dollars to process your recast. Check out our mortgage recast calculator on this page to see how a recast could work for you.