Mortgage Recast Calculator
Compare a principal lump sum with and without a recast while keeping the entered rate and remaining term.
| Scenario | Payment | Remaining interest |
|---|---|---|
| No lump sum | $2,363 | $358,968 |
| Lump sum, no recast | $2,363 | $209,011 |
| Lump sum with recast | $2,026 | $307,686 |
Recast Amortization Schedule
This accessible table shows selected months from the recast schedule. The old-payment scenario would pay the reduced balance off sooner, while the recast preserves the remaining term.
| Month | Starting balance | Payment | Interest | Ending balance |
|---|---|---|---|---|
| 1 | $300,000 | $2,026 | $1,625 | $299,599 |
| 2 | $299,599 | $2,026 | $1,623 | $299,197 |
| 3 | $299,197 | $2,026 | $1,621 | $298,792 |
| 4 | $298,792 | $2,026 | $1,618 | $298,384 |
| 5 | $298,384 | $2,026 | $1,616 | $297,975 |
| 6 | $297,975 | $2,026 | $1,614 | $297,563 |
| 300 | $2,015 | $2,026 | $11 | $0 |
Frequently Asked Questions
What is a mortgage recast?
A recast applies a large principal payment and then recalculates the required principal-and-interest payment over the remaining term, usually without changing the interest rate. Eligibility and procedures vary by lender.
Does a recast lower the mortgage interest rate?
No. This estimate keeps the entered rate and remaining term unchanged. It models a lower payment because the principal balance is lower.
Is a mortgage recast always available?
No. Lender eligibility, minimum principal reductions, fees, timing, loan type, and documentation requirements vary. Ask the servicer before assuming a recast can be completed.
Mortgage Recast Payment and Interest Comparison
A recast can change the required payment without changing the rate or remaining term, but it does not replace lender confirmation.
How a recast is modeled
The calculator subtracts the lump sum from current principal, calculates a new payment over the original remaining term, and compares that result with keeping the original payment.
- The lump sum is treated as a principal reduction.
- The interest rate and remaining term stay constant.
- The fee break-even divides the fee by the modeled monthly payment reduction.
Methodology and limitations
This is a deterministic estimate, not a promise that a lender will approve or process a recast. Servicers may use different balances, payment dates, fees, minimum reductions, and eligibility rules.
- Taxes, insurance, escrow, and HOA costs are excluded from payment outputs.
- The lender controls the exact payoff and recast calculation.
- Retaining the old payment is shown as a modeled faster-payoff comparison.
Questions for your servicer
Ask whether your loan is eligible, whether the lump sum must be paid before a request, what fee and minimum reduction apply, and when the new payment begins.