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 $51,000 in remaining interest. Larger prepayments scale proportionally.

No. A recast keeps the same remaining term and only lowers the monthly payment by spreading the smaller balance over the same number of months. If you want to shorten the term as well as lower the payment, you need to make extra principal payments month after month after the recast.

Most lenders require a minimum lump sum of $5,000 to $10,000, and some ask for at least 10% of the outstanding balance. In break-even terms, the recast fee (usually $150–$500) is recovered within a few months of savings, so almost any amount the lender will accept comes out financially positive.

No. Unlike a refinance, a recast does not trigger a hard credit inquiry or open a new line of credit. It is simply an administrative adjustment to your existing payment schedule, so your credit score is not affected at all.