HELOC Recast Break-Even Analyzer

Model the full cash impact of keeping an interest-only HELOC, paying a one-time recast fee, or refinancing into a fixed mortgage. Enter the balance, rates, and term to review monthly payments, total interest, breakeven timing, and lifetime savings after accounting for every fee.

Enter the principal that will remain after the draw period ends.
Use the reset rate expected for the repayment period.
Enter the quoted fixed rate on the refinance you are evaluating.
Match the amortisation horizon for the recast and the refinance.
Defaults to $0; include lender fees, appraisal, title, and points due at closing.
Defaults to $0 when the servicer waives the administrative recast fee.

Estimates exclude taxes, insurance, and lender-specific program rules. Confirm terms with your lender before refinancing or recasting.

Examples

  • Balance $85,000, HELOC 8.25%, refinance 6.75%, 18-year term, $3,200 closing, $450 recast ⇒ Interest-only costs are $584.38 per month and $126,225.00 of interest before the $211,225.00 payoff. Recasting generates a $756.63 payment with $78,431.11 of interest plus $450.00 in fees ($78,881.11 total). Refinancing drops the payment to $680.82 with $62,057.12 of interest and $3,200.00 in costs ($65,257.12 total), saving $75.81 monthly and breaking even after 37 months (3.08 years). Lifetime savings equal $13,623.99 versus recasting and $60,967.88 versus interest-only.
  • Balance $60,000, HELOC 7.90%, refinance 7.20%, 15-year term, $2,200 closing, $350 recast ⇒ The interest-only approach costs $395.00 monthly and $71,100.00 of interest before a $131,100.00 payoff. Recasting raises the payment to $569.93 with $42,587.91 of interest and $350.00 of fees ($42,937.91 total). Refinancing locks in a $546.03 payment, $38,285.05 of interest, and $2,200.00 of costs ($40,485.05 total) for $23.90 monthly savings, a 78-month (6.50-year) breakeven, and $2,452.86 of lifetime savings versus recasting.

FAQ

How are closing costs handled?

Closing costs entered for the refinance are treated as an upfront outlay and compared with any recast fee so the breakeven month reflects the true cash delta.

What if my HELOC rate will keep floating?

Input your best estimate of the blended rate after reset—if you expect further hikes, raise the rate to stress-test the benefit of refinancing sooner.

Can I model a shorter payoff horizon?

Yes. Shorten the remaining repayment term to see how extra principal payments accelerate savings versus the recast or interest-only paths.

Additional Information

  • Interest-only totals assume the HELOC stays interest-only until maturity, when the entire principal balance is due in a single balloon payment.
  • Both recast and refinance payments apply the same amortisation term so you see a like-for-like comparison of cash flow and interest.
  • Breakeven divides the additional refinance closing costs by the monthly savings, rounding up to the next full month to stay conservative.

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