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Mortgage Recast Calculator

Calculate your new monthly payment after making a lump sum payment to reduce your loan balance (recasting).

Last updated: 2/3/2026

A mortgage recast recalculates your monthly payments based on a reduced principal balance and the remaining loan term. Unlike refinancing, your interest rate and term length stay the same.

Calculator Inputs

$
%

How many payments are left on the loan?

$

Amount you plan to pay down

Results

Enter values above to see your results

How It Works

Enter your current balance, interest rate, remaining time, and the lump sum you intend to pay. We calculate the new amortized monthly payment.

Worked Examples

$200,000 Loan with $50,000 Lump Sum

Current Balance:$200,000= Start
Lump Sum:- $50,000= $150,000 New Balance
New Payment:Amortize $150k over remaining term= Lower Monthly Bill

Tips & Best Practices

  • Recasting often requires a fee (e.g., $250) but is cheaper than refinancing.
  • It lowers monthly payments but does NOT shorten your loan term.
  • Check with your lender for minimum lump sum requirements (often $5k+).

Frequently Asked Questions

Does recasting change my interest rate?

No. Recasting keeps your existing rate and term date. It only lowers the principal and monthly payment.

Is recasting better than paying extra principal?

Paying extra principal shortens the loan but keeps payments the same. Recasting lowers payments but keeps the term length. Choose based on cash flow needs.