Mortgage Recast Calculator

A recast applies a large lump-sum payment to your principal, then re-amortizes the remaining balance over the remaining term - keeping your rate and term unchanged but lowering the monthly payment. It typically costs a flat $150–$500 fee and requires no underwriting, no appraisal, and no closing costs. Excellent option after a windfall (inheritance, bonus, home sale).

Recast wins on cost and speed: a few hundred dollars and 30–45 days, no credit check, no rate change. Refinance wins if current rates are meaningfully lower than yours (typically 0.75%+ savings justifies the 2%–5% closing costs). Rule of thumb: rates dropped > 0.75% and you'll stay 5+ years → refinance; otherwise recast.

Most conventional conforming loans allow recasting; jumbo loans usually do. FHA, VA, and USDA loans typically do NOT allow recasting - you would need to refinance instead. Check with your servicer and ask specifically about minimum lump-sum requirements, which are commonly $5,000–$10,000.

It depends on how much you prepay relative to the balance. As a rough guide, a $50,000 lump sum on a $300,000 / 30-year / 6.5% mortgage with 25 years remaining drops the payment by about $330/month and saves roughly $80,000+ in remaining interest. Larger prepayments scale proportionally.