Mortgage Recast Calculator

Your lender takes your current loan balance, subtracts your lump-sum payment, then re-amortizes the new, lower balance over your original remaining term at your existing interest rate. Your rate and payoff date don't change — only your monthly payment drops. Use the calculator above to see your own numbers before calling your servicer.

It's worth considering if you have a lump sum (a bonus, inheritance, or sale proceeds) and want a lower monthly payment without refinancing paperwork, a new credit check, or a new interest rate. It's usually not worth it if you'd rather keep your payment the same and pay off the loan faster instead — in that case, a regular extra principal payment (no recast) shortens your term more aggressively.

It depends on your balance, rate, and lump sum size — there's no fixed answer. A larger lump sum against a higher-rate loan produces a bigger monthly payment drop and more total interest saved. Run your own numbers in the calculator above; most lenders charge a one-time $150–$500 recast fee, which the calculator also accounts for.

A mortgage recast (sometimes called "re-amortization") is when your lender recalculates your monthly payment after you make a large lump-sum payment toward your principal — while keeping your original interest rate and loan term exactly the same. It differs from a refinance, which replaces your loan entirely and can change your rate and term.

No. A recast doesn't involve a new credit check or a new loan, so it has no direct impact on your credit score. It's an adjustment to your existing loan, not a new line of credit.