How to Use the Mortgage Recast Calculator

You can use this calculator in just a few simple steps:

1. Visit the calculator website

Go to: https://mortgagerecastcalculator.pro/

The interface is clean, fast, and mobile-friendly. You don’t need to sign up or download anything.

2. Enter your current loan details

You’ll need some basic information about your mortgage:

• 💵 Original loan amount — the total amount you borrowed at the beginning.
• 📅 Original loan term — for example, 30 years or 15 years.
• 📈 Interest rate — your current fixed mortgage rate (e.g., 6.5%).
• 📅 Start date — the date your mortgage originally started.
• 💸 Monthly payment — your current monthly mortgage payment (principal + interest only).

These details help the calculator figure out where you currently stand on your mortgage.

Tip: You can usually find all of this on your loan statement or your lender’s online portal.

3. Add your extra payment amount

This is the lump-sum amount you plan to pay toward your mortgage to request a recast.

For example, if you recently sold a second car and want to apply $10,000 to your mortgage principal, enter that number here.

📌 Note: Your lender usually requires a minimum lump-sum payment (like $5,000 or more) to qualify for a recast.

4. Choose when you’ll make the payment

Pick the number of months from today when you expect to make this extra payment.

For example, if you make the lump-sum payment in 3 months, choose “3” from the dropdown.

This helps the calculator figure out how much interest you’ll save by paying sooner or later.

5. Click “Calculate”

Once everything is filled in, hit the Calculate button.

The calculator will show you:

• 📉 Your new monthly payment after recast
• ⏳ Remaining loan term (usually stays the same)
• 💰 Interest savings over the life of the loan
• 📊 A side-by-side comparison: before vs. after recasting

Everything is presented clearly, so you can compare your current situation with the new recast scenario.

Use our free Mortgage Recast Calculator to see how much you can save by making a large payment on your mortgage. Learn how recasting works and when it makes sense.

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Recast Mortgage Payment Calculator

Are you looking for a smart way to lower your monthly mortgage payment without refinancing? That’s where a mortgage recast comes in—and our free Mortgage Recast Calculator can help you figure out exactly how much you could save. If you’ve got some extra cash, recasting your mortgage might be one of the easiest ways to pay less monthly.

This guide will walk you through a mortgage recast, how it works, when it makes sense, and how to use our recast calculator to make confident decisions about your home loan.

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What Is a Mortgage Recast?

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How Does a Mortgage Recast Work?

Let’s say you still owe $250,000 on your mortgage. You come into some money—maybe a bonus, tax refund, or inheritance—and decide to put $50,000 toward your loan.

If you just make that payment without recasting, your monthly payments won’t change. You’ll pay off your loan faster and pay less interest overall, but your monthly amount stays the same.

With a recast, your lender recalculates your payment based on the new $200,000 balance and the time left on your loan. The result? Lower monthly payments for the rest of the loan term.

The borrower makes a significant payment towards the principal of the mortgage. This amount varies depending on the requirements of the lender but often starts at $5,000 or more.

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Benefits of Mortgage Recasting

Understanding how much you can save helps you make better financial choices. Our loan recast calculator gives you a quick estimate without needing to talk to your bank first.

Here’s what makes our calculator helpful:

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Eligibility Criteria for Mortgage Recasting

Lender-Specific Requirements

• Minimum Lump-Sum Payment: Many lenders require a minimum principal reduction amount. often starting at $5,000 to $10,000.
• Payment History: Borrowers are generally required to have a history of on-time mortgage payments to be eligible

Is Recasting Better Than Refinancing?

Mortgage Recasting vs. Refinancing

Both refinancing and refinancing can reduce mortgage payments, but they work in different ways. Here is a quick comparison:

Feature	Mortgage Recasting	Mortgage Refinancing
Changes Loan Terms?	No	Yes
Lowers Interest Rate?	No	Yes (if current rates are lower)
Requires Credit Check?	No	Yes
Closing Costs?	Low or none	High
Good for Lowering Monthly Payments?	Yes	Yes
Good for Reducing Interest Rate?	No	Yes

If your goal is to reduce your monthly payment and you have a lump sum amount, then the restructured mortgage may be a simple and more cost-effective solution.

How to Recast Your Mortgage Step-by-Step

Mortgage Recasting vs. Refinancing

Using a recast mortgage payment calculator can help you determine whether a recast is right for you. Here are some benefits:

Is Mortgage Recasting Right for You?

• A mortgage recast is a great option for homeowners who:
• A lump sum amount should be available (from savings, heritage, or a bonus).
• Want to reduce your monthly payment but maintain your current interest rate?
• Do not want to go through the problem of reconstruction.
• Take a certain rate of loan (usually rebelling is not available for government loans such as ARM or FHA/VA loans).

However, if your goal is to get a lower interest rate, refinancing might be a better choice.

How to Get Equity Out of Your Home Without Refinancing

If you are considering refinancing, you must also be thinking about other ways to use the equity of your home. Here are some options:

• Home Equity Line of Credit (HELOC)—Allows you to borrow against your home’s equity without refinancing.
• Home Equity Loan—A lump sum loan using your home as collateral.
• Cash-Out Refinance—This involves reinstalling your mortgage for more than your loan amount and taking cash in the amount of the difference (although technically it involves refinancing).

Each option has pros and cons, so consider your financial goals before making a decision.

Try the Mortgage Recast Calculator

Our Mortgage Recast Calculator lets you quickly estimate how much your monthly mortgage payment could decrease if you make a lump-sum payment and ask for a recast.

Here’s what you need to enter:

• Your current mortgage balance
• Monthly mortgage payment
• Interest rate
• Number of months left on the loan
• The extra lump-sum payment you want to make

The calculator shows your new estimated monthly payment and how much you’ll save each month. It also gives you total interest savings over the life of the loan.

Example:

• Current loan balance: $250,000
• Monthly payment: $1,800
• Interest rate: 5%
• Months remaining: 300 (25 years)
• Lump sum: $50,000

After recast:

• New balance: $200,000
• New payment: about $1,440
• Monthly savings: ~$360

That’s more than $4,000 saved each year, just by applying extra money toward your loan and getting a recast.

When Does a Mortgage Recast Make Sense?

Recasting isn’t right for everyone. But it’s a great option if:

• You’ve got extra cash you don’t need for emergencies.
• Your interest rate is already low (so refinancing isn’t worth it).
• You want lower monthly payments but don’t want to reset your loan term.
• Your lender offers recasting and allows it on your type of loan.

It’s especially popular for people who’ve just sold another home, received a large bonus, or want to lower expenses before retirement.

When You Shouldn’t Recast Your Mortgage

Sometimes, a recast may not be the best move. Here are a few examples:

• If you’re planning to move soon, you might not benefit enough from the monthly savings.
• If your lender charges high fees or doesn’t offer recasting at all (not all lenders do).
• If your money would do more good elsewhere-like paying off high-interest credit cards or investing in a retirement account.

Also, note that government-backed loans like FHA or VA usually don’t allow recasting.

Expert Tips for Recasting Your Mortgage

Here are some tips to help you get the most out of your mortgage recast:

1. Call your lender first. Not all lenders allow recasting, and some limit how often you can do it.
2. Ask about fees. These are usually small but double-check so you’re not surprised.
3. Make sure the lump sum is applied to the principal. That’s what brings your balance down.
4. Use our recast calculator to estimate savings before making a decision.
5. Keep an emergency fund. Don’t drain your savings just to lower your mortgage.

Real-Life Example: How a Couple Saved $300 a Month

Jake and Maria bought their home five years ago with a 30-year fixed-rate mortgage at 4.5%. After selling a rental property, they had $60,000 in cash. Rather than refinance (which would cost them $4,000 in closing fees), they used $50,000 to recast their mortgage.

Before the recast, their payment was $1,600 a month. After, it dropped to just under $1,300. That’s $300 a month in savings—money they now use to invest in their kids’ college fund.

Frequently Asked Questions (FAQs)

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