Recasting is cheaper (a small servicer fee) but doesn't change your rate. Refinancing changes the rate and term but has closing costs. Use both calculators to compare.

Are recasts always allowed?

No. Many servicers offer them, often with a minimum lump sum and a small fee. Government loans (FHA, VA, USDA) typically don't allow recasting.

Mortgage Recast Calculator

A recast lowers your monthly payment without changing your rate or term. See three scenarios so you can choose between cash-flow relief and faster payoff.

Mortgage Recast Scenario

Generated … · Assumption set 2026-04-30

New monthly payment

$1,481.89/mo

Old monthly payment

$1,804.04

Monthly reduction

$322.15

New principal

$230,000

Recast fee

$250.00

Recast fees vary
Servicers charge different recast fees and have different minimum lump-sum requirements. Confirm the actual fee with your servicer.

Three scenarios compared

Lifetime interest by strategy

No recast (status quo)$261,214.77

Recast and pay the lower payment$214,569.34

Recast but keep paying the old payment$136,996.90 (lowest interest)

Assumptions used

Assumption set 2026-04-30

Current balance: $280,000user input
Annual interest rate: 6.00%user input
Loan term: 25 yearsuser input
Lump-sum principal: $50,000user input
Recast fee: $250user input
Calculated current payment: $1,804.04calculated

How this calculator works

With a recast, you make a lump-sum principal payment and your servicer re-amortizes the remaining balance over the same rate and remaining term. Your monthly payment drops, but you still owe the same number of months unless you keep paying extra.

Reviewed for calculation accuracy and clarity by Mortgage Well calculation team · April 30, 2026

When to use this

You have a large lump sum (bonus, inheritance, sale proceeds) and want lower monthly payments.
Your rate is already favorable so refinancing isn't attractive, but you want cash-flow relief.
You want to reduce your payment without restarting the clock with a fresh 30-year term.

Methodology

We compute the new principal as current balance minus your lump sum, then re-amortize that principal over the remaining term at the same rate. Three strategies are compared: do nothing, recast and pay the lower payment, or recast and voluntarily keep the old payment.

new_principal = current_balance - lump_sum
new_payment = amortized_payment(new_principal, remaining_term, rate)

Assumptions

Recast fees vary by servicer; the calculator surfaces the fee but doesn't add it to principal.
Government loans (FHA / VA / USDA) typically don't allow recasting.
The interest rate and remaining term are unchanged by the recast.

Example

A $50,000 lump sum on a $280,000 / 6% / 25-year loan can lower your monthly payment by several hundred dollars. If you keep paying the original payment voluntarily, you save the most lifetime interest.

Frequently asked

Recast or refinance?: Recasting is cheaper (a small servicer fee) but doesn't change your rate. Refinancing changes the rate and term but has closing costs. Use both calculators to compare.
Are recasts always allowed?: No. Many servicers offer them, often with a minimum lump sum and a small fee. Government loans (FHA, VA, USDA) typically don't allow recasting.

Estimates only. This calculator is not a loan offer, loan approval, official Loan Estimate, Closing Disclosure, tax advice, legal advice, or financial advice. Actual payments, rates, taxes, insurance, mortgage insurance, closing costs, and loan terms may vary. Contact a qualified lender, tax professional, or financial advisor for guidance.