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Mortgage Recast Calculator

Got a lump sum? Recast, prepay, or refinance?

Enter your current mortgage and the cash you could put toward it. We’ll compare lowering your payment (a recast), paying the loan off sooner, and refinancing, side by side.

  1. A recast lowers your payment

    With a , you pay a lump sum toward the balance and the lender recalculates your monthly payment over the time left, for a small fee. Your rate and end date stay the same.

  2. Prepaying ends the loan sooner

    You can also pay the lump sum toward the balance and keep making the same payment. The loan ends years early and saves more interest than a recast, but your monthly bill doesn’t drop.

  3. Refinancing replaces the loan

    A refinance swaps your loan for a new one, usually to get a lower rate. It means applying again and paying , so it only pays off when the rate drop is big enough.
Your servicer (the company you send payments to) can tell you whether your loan can be recast, the minimum lump sum, and the fee. For the refinance option, see When refinancing makes sense.
Loan type
Your loan today

From your latest mortgage statement. Use the balance you owe now, not the original loan amount.

$
%
Your lump sum

Cash you could put toward the loan, such as a bonus, inheritance, or proceeds from selling another home.

$
$
If you refinanced instead

A lender's quote for a new loan today. Leave the defaults if you aren't considering a refinance.

%
$

Quick recommendation

Want a lower monthly payment? Pick Refinance ($1,850/mo).
Want the biggest savings? Pick Prepay (same payment) ($158,630 saved after fees).

Lowest monthly payment

Refinance

$1,850/mo

Biggest savings

Prepay (same payment)

saves $158,630 after fees

Lump sum

$50,000

14.7% of what you owe

Current loan payment

$2,261

principal + interest, 26yr 0mo left

What this means

A recast would drop your loan payment by $332 to $1,928 a month and save $53,477 in interest after the fee. Putting the same $50,000 toward the balance and keeping your $2,261 payment instead ends the loan 7 yr 8 mo early and saves $158,630, because the full payment keeps shrinking the balance faster. Refinancing at 5.875% would set your payment at $1,850 and save $78,220 after closing costs, but requires a new application.

Money put into your home becomes , which you can only get back by selling or borrowing against the home. Keep an emergency fund first. Figures cover principal and interest only.

All four options side by side

Do nothing

Keep paying as scheduled and hold on to the cash.

Loan payment: $2,261Paid off in: 26yr 0moTotal interest: $365,345

Pros

  • +Cash stays available for emergencies or investing

Cons

  • −No interest savings
Recast

Pay $50,000 toward the balance and have the lender recalculate your payment at the same rate. Lower monthly payment, same payoff date.

Loan payment: $1,928Paid off in: 26yr 0moTotal interest: $311,618Interest saved: $53,727 − $250 feenet savings $53,477Cash upfront: $50,250

Pros

  • +Lowers monthly payment by $332
  • +About $250 fee, far cheaper than refinancing
  • +Same rate, same payoff date, same lender. No new loan application

Cons

  • −The lump sum is tied up in your home and hard to get back without selling or borrowing
  • −Less interest saved than prepaying and keeping the same payment
Prepay (same payment)

Pay $50,000 toward the balance but keep paying $2,261/mo. The loan ends sooner.

Loan payment: $2,261Paid off in: 18yr 4moTotal interest: $206,715net savings $158,630Cash upfront: $50,000

Pros

  • +Interest saved: $158,630
  • +Paid off 7yr 8mo earlier
  • +No fees

Cons

  • −Monthly payment unchanged, so no extra breathing room in your budget
  • −The lump sum is tied up in your home
Refinance

Pay $50,000 toward the balance, then replace the loan with a new one at 5.875%, adding $5,500 of closing costs to the new loan.

Loan payment: $1,850Paid off in: 26yr 0moTotal interest: $281,625Interest saved: $83,720 − $5,500 closing costsnet savings $78,220

Pros

  • +Lowers payment by $411
  • +Lower lifetime cost, even after closing costs

Cons

  • −$5,500 closing costs (added to the loan here)
  • −You must qualify again (credit, income, appraisal)
  • −Usually takes 30 to 45 days
  • −Starts a new loan, which can stretch your payoff date if you choose a new 30-year term
In a recast, you give the lender a lump sum and pay a small fee (typically $150 to $500). They recalculate your payment at the same rate over the time left on the loan, so the payment drops and the payoff date stays put. You get a lower payment without a refinance’s cost or paperwork. Most conventional loans allow it; ask your servicer.

Results are estimates based on your inputs and the assumptions on this page, not quotes or advice. A lender, servicer, or tax advisor will give you different numbers. Disclaimer

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Terms used on this page

Short definitions of the terms this calculator uses.

Mortgage recast
You pay a lump sum toward your balance and the lender recalculates your monthly payment over the time left, for a small fee. The rate and payoff date stay the same. More
Prepaying (extra principal)
Paying more than required so the extra goes straight to the balance. Keeping your regular payment afterward ends the loan sooner.
Refinance
Replacing your current mortgage with a new loan, usually to get a lower rate. It requires a new application and closing costs.
Principal balance
What you still owe on the loan today, not counting future interest. It’s on your monthly mortgage statement.
Closing costs
Fees to set up a new loan, such as lender charges, appraisal, and title insurance. On a refinance they’re typically 2% to 3% of the loan. More
Loan servicer
The company that collects your payments and manages your loan. It’s who handles a recast request.
Conventional loan
A mortgage not backed by a government agency. Most conventional loans can be recast; FHA, VA, and USDA loans cannot.
Home equity
The part of your home you own outright: its value minus what you owe. Money paid into the loan becomes equity, which is hard to get back without selling or borrowing.

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