See how a lump-sum principal payment lowers your monthly mortgage payment when you recast, keeping the same rate and remaining term.
Informational only — not financial advice. This calculator provides general estimates for educational purposes and does not account for every factor in your situation. It is not financial, investment, tax, or legal advice. Figures are estimates and may not reflect current rates. Consult a qualified professional before making financial decisions.
A mortgage recast (also called re-amortization) lets you make a large lump-sum payment toward your principal, after which the lender recalculates — "recasts" — your monthly payment over the same remaining term at the same interest rate. The result is a permanently lower monthly payment, usually for a small fee (often a few hundred dollars).
Because the rate and payoff date don't change, a recast is simpler and cheaper than a refinance — there's no new loan, no credit check, and no closing costs. But it's only available on some loan types, and it won't lower your rate. Enter your numbers above to see the new payment.
All three put more of your money toward the loan, but they do different things: a recast lowers the payment (same term); extra principal payments keep the payment the same but shorten the term and cut interest the most; a refinance changes the interest rate and/or term. Read recast vs. refinance to choose.