Mortgage Recast Calculator
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See your new payment after a lump sum, and compare recasting against simply prepaying the same amount without one.
Your mortgage
Most servicers require a minimum of $5,000 to $10,000 to recast.
Typically $150 to $500. Far cheaper than refinance closing costs.
New payment after recast
$1,795.28
Down from $2,127.74, a saving of $332.46 per month. Your payoff date does not change. The balance drops to $270,000 and the payment is recalculated over the same 26 years.
Monthly savings
$332.46
Every month for the rest of the loan
Interest saved
$53,377
Net of the $350 recast fee
Recast vs prepay without recasting
Same lump sum, two different outcomes. Recasting cuts the payment. Prepaying alone keeps the payment and ends the loan early.
| Option | Payment | Payoff | Interest saved |
|---|---|---|---|
| Do nothing | $2,127.74 | 26 yr | Baseline |
| Recast | $1,795.28 | 26 yr | $53,377 |
| Prepay, no recast | $2,127.74 | 18 years | $155,905 |
Prepaying without recasting saves $102,528 more in interest and ends the loan 8 years early, but your monthly payment stays at $2,127.74. Recasting trades that extra interest saving for cash flow today.
New payment by lump sum
| Lump sum | New payment | Monthly savings |
|---|---|---|
| $10,000 | $2,061.25 | $66.49 |
| $25,000 | $1,961.51 | $166.23 |
| $50,000 | $1,795.28 | $332.46 |
| $75,000 | $1,629.05 | $498.69 |
| $100,000 | $1,462.82 | $664.92 |
| $150,000 | $1,130.36 | $997.38 |
What is a mortgage recast?
A recast is a re-amortization. You pay a lump sum toward principal, and the servicer recalculates your monthly payment across the same remaining term at the same interest rate. The payoff date does not move. Only the required payment goes down.
It is the quietest tool in mortgage management, partly because servicers rarely advertise it. There is no credit check, no appraisal, no underwriting, and no new closing costs. The fee is usually a flat $150 to $500.
Recast vs refinance vs prepay
| Recast | Refinance | Prepay only | |
|---|---|---|---|
| Cost | $150 to $500 | 2% to 5% of loan | $0 |
| Interest rate | Unchanged | New rate | Unchanged |
| Monthly payment | Lower | Depends on rate and term | Unchanged |
| Payoff date | Unchanged | Usually resets | Earlier |
| Credit check | No | Yes | No |
The clean decision rule: if your rate is already competitive and you want lower payments, recast. If market rates are meaningfully below yours, refinance. If you want to be rid of the loan as fast as possible and your cash flow is comfortable, prepay without recasting.
When recasting is the right call
- You have a low rate you do not want to lose. Anyone holding a 3% mortgage cannot refinance into a lower rate today, but can still cut the payment through a recast.
- A windfall arrived. Bonus, inheritance, equity from a previous sale, or proceeds from a business exit.
- You bought before selling. Many buyers close on a new home first, then recast once the old house sells. Some servicers offer a dedicated program for exactly this.
- Income is about to drop. Moving to one income, going part time, or starting a business. A lower required payment reduces risk in a way that prepaying does not.
When to skip it
If you plan to sell within a few years, tying up cash in home equity to shave a payment you will not make for long rarely pays. If your rate is above current market rates, look at a refinance instead, using the refinance calculator to find the break-even point. And if the lump sum could clear higher-interest debt, that almost always beats a mortgage recast on pure return.
How to request one
Contact your loan servicer, not the original lender, and ask specifically for a recast or re-amortization. Confirm the minimum lump sum, the fee, and whether your loan type qualifies. Make the principal-only payment as instructed and request the recast in writing. Processing usually takes 30 to 60 days, and the new payment starts the following billing cycle.
Model the rest of the payment
Model the full payment including taxes and insurance with the mortgage calculator, see the effect of extra payments on the schedule with the amortization calculator, or check whether a large payment also gets you out of mortgage insurance using the PMI removal calculator.
A mortgage recast is when you make a large lump sum payment toward principal and your servicer recalculates the monthly payment over the original remaining term. The interest rate and payoff date stay the same. Only the payment drops. It is sometimes called re-amortization, and it typically costs a flat fee of $150 to $500 rather than the thousands a refinance would cost.
They solve different problems. Recasting lowers the payment while keeping your existing interest rate, and costs a few hundred dollars with no credit check, appraisal, or new closing. Refinancing changes the rate and the term, and costs 2% to 5% of the loan in closing costs. If your current rate is already good, recasting is almost always the better tool. If rates have fallen well below yours, refinancing wins despite the cost.
Prepaying without a recast saves more total interest because your payment stays high and the loan ends earlier. Recasting saves less interest but frees up monthly cash flow immediately. The choice is about what you need. If cash flow is comfortable and you want to be debt free sooner, prepay. If a lower required payment would reduce risk, such as before a job change or a move to one income, recast.
Most conventional loans backed by Fannie Mae and Freddie Mac allow recasting. FHA, VA, and USDA loans generally do not. Jumbo loan policies vary by lender. Servicers typically require a minimum lump sum of $5,000 to $10,000, a current loan in good standing, and at least a couple of years of payment history. Policy is set by the servicer, not the original lender, so confirm with whoever currently holds your loan.
Roughly in proportion to the balance reduction. Paying down 15% of the balance cuts the payment by about 15%. On a $320,000 balance at 6.5% with 26 years remaining, a $50,000 lump sum reduces the payment from about $2,168 to about $1,829, a saving of around $339 per month for the rest of the loan.
No. A recast is not a new loan. There is no credit inquiry, no new underwriting, and no new origination. The note stays in place with the same rate and the same maturity date. Only the amortization schedule is recalculated, which is why the fee is small compared with a refinance.