Mortgage Recast Calculator
See how a lump sum payment + recast permanently lowers your monthly bill — without refinancing or closing costs.
Simulate a Lump Sum Payment →What Is a Mortgage Recast?
A mortgage recast (or re-amortization) is when you make a large lump sum payment toward your principal, and your lender recalculates your monthly payment based on the new lower balance — while keeping your same interest rate, loan term, and payoff date.
Unlike refinancing, a recast costs almost nothing ($150-500 fee), requires no credit check, no appraisal, and no closing costs. You keep your existing rate (great if you locked in a low one) and immediately get a lower monthly payment.
Example: $350,000 balance at 6.5%, 25 years remaining
| Lump Sum | New Payment | Monthly Savings |
|---|---|---|
| $25,000 | $2,163/mo | -$168 |
| $50,000 | $1,997/mo | -$334 |
| $75,000 | $1,830/mo | -$501 |
| $100,000 | $1,663/mo | -$668 |
Original payment: $2,331/mo. Recast fee: ~$250 (one-time).
Recast vs Refinance vs Extra Payments
| Feature | Recast | Refinance | Extra Payments |
|---|---|---|---|
| Lowers monthly payment | ✅ | ✅ | ❌ |
| Keeps current rate | ✅ | ❌ | ✅ |
| Cost | $150-500 | $6K-18K | $0 |
| Credit check | No | Yes | No |
| Shortens loan term | ❌ | Optional | ✅ |
When to Recast
- You got a windfall — inheritance, bonus, home sale proceeds — and want lower monthly payments.
- You have a low rate — locked in 3-4% and don't want to refinance into today's 6-7%.
- You want cashflow relief — lower payment frees up monthly budget without selling investments.
- After selling a previous home — apply the proceeds to your new mortgage and recast for a lower payment.
Requirements
- Minimum lump sum: usually $5,000-10,000 (varies by lender)
- Loan must be conventional (FHA and VA loans typically can't be recast)
- Loan must be current (no missed payments)
- Fee: $150-500 one-time
- Contact your servicer to initiate — not all advertise this option
Frequently Asked Questions
What is a mortgage recast?
A recast is when you make a large lump sum payment toward principal, and your lender recalculates (re-amortizes) your remaining payments based on the lower balance. Your rate and term stay the same, but your monthly payment drops permanently.
How much does a mortgage recast cost?
Most lenders charge a one-time fee of $150-500. Compare this to refinancing costs of $6,000-18,000. No appraisal, no credit check, no title insurance needed.
What is the minimum amount to recast a mortgage?
Most lenders require a minimum lump sum of $5,000-$10,000 to recast. Some set it higher. Check with your loan servicer for their specific minimum.
Can I recast an FHA or VA loan?
Generally no. FHA and VA loans typically cannot be recast. Recasting is available for conventional (conforming and jumbo) loans. USDA loans also usually don't qualify.
Recast vs refinance — which is better?
Recast if you have a good rate and want lower payments cheaply. Refinance if rates have dropped significantly and you want a new, lower rate. Recast costs $250 vs $10,000+ for refinancing.