Loan Recast Calculator
Estimate your new monthly payment and savings after a lump sum payment
Recast Results
Recasting vs. Refinancing
Recasting keeps your existing loan but reduces your monthly payment by applying a lump sum payment and recalculating your payment schedule. The interest rate and loan term remain the same.
Refinancing replaces your existing loan with a new one, potentially with a different interest rate and term. It typically involves closing costs and may require a new appraisal and credit check.
Consider recasting if you’re happy with your current interest rate and want to avoid the costs of refinancing. Consider refinancing if current interest rates are significantly lower than your existing rate.
Loan Recast Calculator: Simplify Your Mortgage Restructuring
A mortgage recast calculator is a valuable financial tool that helps homeowners understand how restructuring their mortgage affects their monthly payments and overall loan costs. Like auto loan calculators that help estimate car payments, a mortgage recast calculator provides ongoing value by giving you clear insights into your financial options.
What is Mortgage Recasting?
Mortgage recasting is the process of making a large lump-sum payment toward your principal balance and then recalculating your monthly payments based on the new, lower balance. Unlike refinancing, recasting:
- Keeps your original interest rate
- Maintains your existing loan term
- Doesn’t require a credit check
- Typically involves a small processing fee ($250-$500)
How Our Loan Recast Calculator Works
Our user-friendly mortgage recast calculator is designed specifically for this purpose, rather than using a general-purpose calculator that might not account for all the variables involved in recasting. By creating a specialized tool, we ensure you get accurate, relevant results for your specific situation.
To use our calculator:
- Enter your current loan balance
- Input your existing interest rate
- Enter your remaining loan term in years
- Specify the lump-sum payment amount you plan to make
- Click “Calculate” to see your new monthly payment
Benefits of Using a Mortgage Recast Calculator
Just as 90% of loan and mortgage consumers begin their search online, using a digital calculator helps you make informed financial decisions. It builds trust by giving you transparent information about your options before committing to a major financial change.
Our calculator helps you:
- Compare scenarios: Test different lump-sum payment amounts to find your ideal option
- See actual savings: Calculate exactly how much you’ll save in monthly payments
- Plan your budget: Understand how recasting affects your long-term financial picture
- Make confident decisions: Get clear information without pressure from lenders
When Should You Consider Recasting Your Mortgage?
A mortgage recast makes the most sense when:
- You’ve received a large sum of money (inheritance, bonus, etc.)
- You want to lower monthly payments without refinancing
- Current interest rates are higher than your existing rate
- You plan to stay in your home for several more years
- Your loan servicer offers recasting (not all do)
Mortgage Recast vs. Refinancing
Many homeowners wonder whether to recast or refinance. Here’s how they compare:
| Feature | Mortgage Recast | Refinancing |
|---|---|---|
| Interest Rate | Unchanged | New rate (could be higher or lower) |
| Loan Term | Unchanged | Can be extended or shortened |
| Closing Costs | Low fee ($250-$500) | Higher costs (2-5% of loan) |
| Credit Check | Not required | Required |
| Process Time | Quick (1-2 weeks) | Longer (30-45 days) |
| Principal Reduction | Required | Optional |
Frequently Asked Questions
Does every lender offer mortgage recasting?
No. While many conventional loans can be recast, government-backed loans (FHA, VA, USDA) typically don’t allow recasting. Check with your loan servicer.
What’s the minimum amount needed for recasting?
Most lenders require at least $5,000-$10,000 as a lump-sum payment, but requirements vary.
How often can I recast my mortgage?
This depends on your lender’s policies. Some allow multiple recasts, while others limit you to once per loan.
Will recasting affect my credit score?
No, since there’s no credit check involved and no new loan account created.
How soon will my payment change after recasting?
Typically, your new payment amount will take effect in the next billing cycle after the recast is processed.
Try our Loan Recast Calculator today to see how much you could save by recasting your mortgage!