Recast Calculator
Optimize your mortgage by projecting the impact of a principal lump sum.
Mortgage recasting is a powerful, low-cost alternative to refinancing. By making a lump-sum payment toward your principal, you can permanently reduce your required monthly payment while keeping your existing interest rate and remaining loan term intact. Use the calculator below to model your lump-sum scenario, view your adjusted amortization curve, and see your exact monthly and lifetime interest savings.
Parameters
$1,816
$2,124Save $308 per month
$60,829
Lifetime Impact
0 MONTHS
No term change
| Metric | Original Mortgage | Post-Recast | Delta |
|---|---|---|---|
| Monthly P&I | $2,124.22 | $1,816.37 | -$307.86 |
| Remaining Interest | $419,721 | $358,892 | -$60,829 |
| Principal Paid (Year 5) | 6.7% | 20.2% | +13.5% |
Amortization Comparison
Projected Balance Over Time
5-Year Equity Advantage
By injecting a lump sum of $50,000 today, your remaining balance at Year 5 drops to $275,345 (compared to $322,013 originally). You secure $46,669 in guaranteed equity.
10-Year Debt Velocity
At Year 10, your remaining loan balance stands at $248,501 vs. $290,620 without recasting. Your principal paydown accelerates immediately without increasing your monthly overhead.
Amortization Schedule
Month-by-month breakdown
Liquidity Optimization
By moving $50,000 into your home, you're securing $308 in new monthly liquidity at a guaranteed 6.25% return.
Did you know?
A recast typically costs $250–$500 in administrative fees but pays for itself within the first two months of mortgage savings.
Frequently Asked Questions
Everything you need to know about mortgage recasting and principal lump sums.
1What is a Mortgage Recast?
A mortgage recast allows you to make a lump-sum principal payment toward your existing mortgage, after which your lender recalculates (re-amortizes) your remaining balance over the original remaining term. This lowers your required monthly mortgage payment without changing your interest rate.
2How is Recasting different from Refinancing?
Refinancing replaces your old mortgage with a brand new loan at current market interest rates, incurring full closing costs (2%–4%). Recasting keeps your existing mortgage and its exact interest rate intact, usually requiring only a small administrative fee ($150–$500) from your lender.
3Does a Recast reduce my interest rate?
No. A recast preserves your existing interest rate exactly. However, because you are paying down a large chunk of principal upfront, your lifetime interest cost is drastically reduced because there is less principal compounding interest over time.
4Does a Recast shorten my loan term?
No. A recast keeps your exact remaining loan term. Because the lower principal balance is spread over the same remaining timeframe, your required monthly payment drops significantly. If you want to shorten your term, you can continue making your old higher monthly payment.
5How is Recasting different from making standard extra principal payments?
When you make standard extra principal payments, your loan balance drops and you pay off the loan faster, but your required monthly payment remains exactly the same. A recast adjusts the amortization schedule so your required monthly payment permanently decreases, improving your monthly cash flow.
6What are the requirements to qualify for a Recast?
Most lenders require a minimum lump-sum payment (typically $5,000 or 10% of the loan balance), a pristine payment history, and a qualifying loan type (conventional Fannie Mae/Freddie Mac loans generally allow recasting, while FHA and VA loans typically do not).
7How much does it cost to recast a mortgage?
Lenders typically charge a one-time administrative fee between $250 and $500 to process a mortgage recast. There are no appraisal, title, or escrow costs associated with a recast, making it a very inexpensive way to lower your payments compared to a refinance.
8Can I request a recast at any time?
Most servicers require that your mortgage has been active for at least 12 months before they will approve a recast, and you must have a history of on-time payments. It is always recommended to contact your specific lender beforehand to confirm their individual requirements and processing times.
9How many times can you recast a mortgage?
Most loan servicers allow you to recast your mortgage multiple times over the life of the loan, though some may impose a waiting period (typically 12 months) between requests. There is no legal limit to how many times you can recast conventional Fannie Mae or Freddie Mac loans.
10Is a mortgage recast better than making extra principal payments?
A recast is better if your primary goal is lower monthly overhead and improved cash flow, as it permanently recalculates and reduces your required payment. Making extra principal payments without recasting saves the same amount of interest and pays off the loan faster, but keeps your monthly payment exactly the same.