What Is a Mortgage Recast?
A mortgage recast — also called a re‑amortization — is a strategy where you make a large lump‑sum payment toward your loan principal, and your lender recalculates (re‑amortizes) your remaining monthly payments based on the new, lower balance. Your interest rate and loan term remain unchanged.
This is different from a refinance, which replaces your entire loan with a new one.
How Does the Mortgage Recasting Calculator Work?
This recast calculator mortgage uses your current loan details and your proposed lump‑sum payment to compute:
- New Monthly Payment — your lower payment after the recast
- Monthly Savings — the difference between current and new payments
- Total Interest Savings — how much interest you save over the life of the loan
- Break‑Even Period — how long it takes for the monthly savings to cover the recast fee (if any)
The tool also shows a side‑by‑side comparison of your current payment schedule versus the recast payment schedule.
Who Benefits from the Recast Mortgage Payment Calculator?
This home loan recast calculator is designed for:
- Homeowners with extra cash looking to lower their monthly mortgage burden
- Homebuyers who sold a previous home and want to apply proceeds to a new mortgage
- Borrowers who want to keep their current low interest rate but reduce payments
- Anyone considering a mortgage loan recast calculator to evaluate if recasting is worth it
Frequently Asked Questions
What is a mortgage recast?
A mortgage recast is when you make a large lump‑sum payment toward your principal and your lender recalculates your monthly payment based on the new lower balance, while keeping the same interest rate and loan term.
How does a mortgage recast calculator work?
It takes your current loan balance, interest rate, remaining term, and lump‑sum payment to compute your new monthly payment, total savings, and break‑even period.
What is the difference between a recast and a refinance?
A recast keeps your existing interest rate and loan term, only lowering your monthly payment. A refinance replaces your entire loan with a new one, potentially changing the rate, term, and costs.
Is there a fee to recast a mortgage?
Yes — most lenders charge a recast fee, typically between $150 and $500. The calculator includes a recast fee input.
How long does it take to break even on a mortgage recast?
The break‑even period is the number of months it takes for your monthly savings to cover the cost of the recast fee (if any).
Is my data stored anywhere?
No. All calculations run locally in your browser. No data uploaded, no signup.