Old payment
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before recasting
Calculator
Mortgage Recast Calculator
Apply a lump sum and see how much your monthly payment drops when your lender re-amortizes the loan over the same term, at the same rate.
New payment
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Monthly cash freed
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lower required payment
Interest saved
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vs. no lump sum
Monthly payment: before vs. after recast
Note: a recast does not shorten your term. Prepaying the same lump sum (without recasting) saves more interest but keeps your payment unchanged.
How a recast works
You pay a lump sum toward principal, the lender recalculates your payment over the remaining term at your existing rate, and your required monthly payment falls. Nothing else changes — no new rate, no new term, no closing costs. It's the cheapest way to lower a payment when you already like your rate.
Recast vs. prepay vs. refinance
A recast lowers your payment but keeps the term; prepaying keeps the payment but shortens the term and saves more interest; refinancing changes your rate entirely. Compare all of them in the Decision Engine.
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Frequently asked questions
What is a mortgage recast?
A recast re-amortizes your loan after a lump-sum principal payment. Your balance drops, so your monthly payment is recalculated lower — but your interest rate and remaining term stay the same.
How much does a recast cost?
Usually a flat fee of about $150–$500, with no closing costs, appraisal, or credit check. Lenders also set a minimum additional principal payment, often $5,000–$10,000.
Does recasting save interest?
Some, because your balance is lower — but far less than prepaying the same amount, since the term doesn't shorten. Recasting optimizes for a lower payment, not maximum interest saved.
Which loans can be recast?
Generally conventional loans. FHA, VA, and USDA loans typically cannot be recast. Always confirm with your servicer.