Mortgage Recast Calculator
What the payment becomes after a lump sum, with the term left unchanged.
Result
Payment after recast: $1,436.48Estimate
A recast lowers the payment and keeps the term. Simply prepaying the same lump sum keeps the payment and shortens the term instead, which saves more interest. Not every loan can be recast.
- Payment before
- $1,640.71
- Monthly reduction
- $204.23Estimate
- Balance after the lump sum
- $211,000.00
- Interest saved over the term
- $63,469.76Estimate
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Results are arithmetic from the figures you enter, not legal, tax, lending or settlement advice. Fees vary by state, lender and negotiation, and the site quotes none of them. Check your Loan Estimate, Closing Disclosure or settlement statement for the real numbers. Read the full disclaimer
How to use the Mortgage Recast Calculator
- Enter the current balance, the rate and how many months remain.
- Enter the lump sum you intend to apply.
- Add the recast fee your servicer charges, if any.
Same term, smaller payment
A recast takes the balance after your lump sum and spreads it across the months you had left.
new payment = amortise(balance − lump sum) over the unchanged remaining termThe rate does not move. The end date does not move. Only the payment does.
Against simply prepaying
Apply the same lump sum without a recast and the balance falls identically, but your payment stays where it was. The extra each month goes entirely to principal, the loan clears early, and you pay less interest in total than you would after a recast.
That makes prepaying the better arithmetic and the recast the better cash flow. Which one is right depends on whether you need the monthly room, and neither answer is one a calculator should choose for you. The mortgage payoff calculator models the other path.
What is not in the figure
The saving shown compares the two payment streams across the remaining term, less the fee. It assumes you keep the loan to the end, which many people do not, and it does not account for what the lump sum might have earned elsewhere. Both of those can matter more than the payment reduction itself.
With your numbers
- Balance after the lump sum = $211,000.00
- Re-amortised over the same 312 months
- Payment falls from $1,640.71 to $1,436.48, a reduction of $204.23
Quick reference
A recast lowers the payment and keeps the term. Simply prepaying the same lump sum keeps the payment and shortens the term instead, which saves more interest. Not every loan can be recast.
| Example | Payment after recast |
|---|---|
| Worked example, $30,000 lump sum | $1,436.48 |
| No lump sum | $1,640.71 |
| Larger lump sum | $1,130.12 |
| Late in the term | $613.41 |
| Low rate | €1,280.99 |
| No fee | €1,239.21 |
Common questions about the Mortgage Recast Calculator
- How is a recast different from just paying extra?
- A recast re-amortises the smaller balance over the same remaining term, so the payment falls and the loan still ends on the original date. Prepaying without a recast keeps the payment the same and clears the loan earlier, which saves more interest overall.
- So which one saves more?
- Prepaying does, because the balance falls just as fast and you keep making the larger payment. A recast buys monthly breathing room instead. They are different goals, not better and worse.
- Can every loan be recast?
- No. Many conventional loans allow it, several government-backed programmes do not, and servicers set minimum lump sums and charge a fee. Ask before you plan around it.
- Does a recast change my interest rate?
- No. It re-amortises the existing loan at the existing rate. Changing the rate means refinancing, which is a new loan with its own costs.
- Does the fee matter much?
- Rarely, next to the sums involved, but it is real money and it is deducted from the saving shown here.