See your new monthly payment after a mortgage recast. Compare recasting vs. extra payments, find the interest saved, and learn if recasting is worth it.
Pick a scenario, then adjust the balance, rate, term, and lump sum to match yours.
Recasting is available on most conventional loans. FHA, VA, and USDA loans are not eligible, and not all servicers offer it.
Recasting eligibility, minimums, and fees are set by your loan servicer and vary — many loans (FHA, VA, USDA) cannot be recast. This is educational information, not financial advice; confirm details with your servicer.
You might also find these calculators useful
A mortgage recast — also called re-amortization — lets you make a large one-time payment toward your principal, after which your lender recalculates your monthly payment over the same remaining term at the same interest rate. The result is a lower monthly payment without refinancing: no new loan, no closing costs, no rate change, and the same payoff date. It's a low-cost option (typically a $150–$500 fee) for anyone who comes into a lump sum — a home sale, bonus, or inheritance — and wants to lower their payment. This calculator shows your new payment, the interest you'd save, and, crucially, how recasting compares with simply keeping your current payment after the lump sum.
A mortgage recast is when your loan servicer re-amortizes your mortgage after you make a lump-sum principal payment, lowering your monthly payment while keeping the same interest rate and remaining term. Unlike a refinance, there's no new loan, no credit check, and no closing costs — just a small processing fee. Recasting also differs from making extra payments: extra payments without a recast keep your monthly payment the same and shorten your loan, saving the most interest; a recast lowers your payment but keeps the original payoff date, so you free up monthly cash flow while paying more total interest than the extra-payment route. Most lenders require a minimum lump sum of $5,000–$10,000 and charge a $150–$500 fee. Conventional (Fannie Mae / Freddie Mac) loans are generally eligible if your servicer offers recasting; FHA, VA, and USDA loans are not eligible.
Mortgage Recast Formula
Apply the proceeds to your new mortgage and recast to a lower payment without refinancing.
Put a year-end bonus or inheritance toward principal and shrink your monthly payment.
When current rates are higher than yours, recast to lower your payment while keeping your rate.
Free up monthly money for other goals while staying on your original payoff schedule.
Decide whether to lower your payment (recast) or pay off sooner (keep paying the same).
Test different lump-sum amounts to find the payment reduction that fits your plan.
Enter your balance, rate, term, and lump sum to see your recast monthly payment and exactly how much it drops.
See the honest tradeoff: recasting lowers your payment, but keeping the same payment pays the loan off sooner and saves more interest.
A recast keeps your rate and term — ideal when today's rates are higher than yours, so refinancing makes no sense.
Conventional loans usually qualify; FHA, VA, and USDA don't. We flag the typical $5,000–$10,000 minimum and the fee.
Sold a home, got a bonus, or inherited money? See how recasting changes your budget before you call your servicer.
No lender sign-up or lead capture — just transparent math you can run as many times as you want.
A mortgage recast (or re-amortization) is when your servicer recalculates your monthly payment after you make a large one-time principal payment. Your interest rate and remaining term stay the same, so your payment drops but your payoff date doesn't change. It usually costs a $150–$500 fee — far less than refinancing.
After your lump sum reduces the principal, the lender re-amortizes the smaller balance over the same remaining months at the same rate. Because the balance is lower but the term is unchanged, each monthly payment is smaller. For example, $50,000 toward a $300,000 balance can cut a payment by several hundred dollars a month.
A recast keeps your existing rate and term and costs only a small fee, with no credit check or closing costs — ideal when current rates are higher than yours. A refinance replaces your loan with a new rate and term and makes sense mainly when you can lower your rate enough to justify closing costs. If your rate is already good, recasting is usually cheaper. Compare with our refinance calculator.
Both start with a lump sum toward principal. A recast lowers your monthly payment but keeps the original payoff date, so you pay more total interest. Keeping your current payment after the lump sum (no recast) pays the loan off sooner and saves the most interest. Choose a recast for cash flow; keep paying the same for the lowest total cost. This calculator shows both.
No. Recasting does not change your interest rate or your loan term — only your monthly payment, because the balance is lower. If you want a lower rate, you need to refinance instead.
Most lenders require a minimum one-time principal payment of $5,000–$10,000 (some use 10% of the balance) and charge a processing fee of about $150–$500. The recast itself typically takes 45–60 days to process once the servicer receives the payment.
Conventional loans backed by Fannie Mae or Freddie Mac are generally eligible if your servicer offers recasting — but lenders aren't required to offer it. FHA, VA, and USDA loans are not eligible for recasting. Always confirm with your specific servicer.
No. A recast doesn't involve a new loan application or a hard credit inquiry, so it has no negative effect on your credit score — unlike a refinance, which adds a hard inquiry and a new account.
Recasting is worth it if your main goal is a lower monthly payment, you have a lump sum, and your current rate is competitive (so refinancing wouldn't help). It's a cheap, low-hassle way to cut your payment. If your goal is to pay the least total interest, keeping your current payment after the lump sum beats recasting — this calculator quantifies both.
Recasting saves interest versus doing nothing because your balance is lower, and it reduces your monthly payment proportionally to the lump sum. The exact amount depends on your balance, rate, term, and lump sum — enter your numbers above to see your new payment, monthly savings, and total interest saved.