Mortgage Recast Payment Drop Calculator
Model how a mortgage recast shifts your monthly payment and lifetime interest. Enter your outstanding balance, current APR, and remaining term, then add an optional lump sum to see the new payment, interest savings, and breakeven on the cash you apply.
Results are estimates. Check with your mortgage servicer for recast fees, eligibility rules, and official payment quotes.
Examples
- $350,000 balance, 5.25% APR, 25 years left, $40,000 lump sum ⇒ Original payment $2,097.37 per month • Recast payment $1,857.67 per month • Monthly payment change −$239.70 • Interest remaining before recast $278,220.10 • Interest after recast (including lump sum) $246,310.37 • Interest saved over the term $31,909.73 • Lump sum recouped in roughly 166.88 months of payment savings. Staying with the original payment would retire the loan about 167 month(s) sooner.
- $265,000 balance, 4.60% APR, 22 years left, lump sum left blank ⇒ Original payment $1,597.71 per month • Recast payment $1,597.71 per month • Monthly payment change $0.00 • Interest remaining before recast $123,982.58 • Interest after recast (including lump sum) $123,982.58 • Interest saved over the term $0.00 • No lump sum entered, so the monthly payment stays unchanged. Recast keeps the original maturity if you continue making the lower payment.
FAQ
Does the calculator include PMI changes?
No. If a recast pushes your loan-to-value below the PMI threshold, remove that monthly cost manually when comparing outcomes.
Can I model a zero-interest mortgage?
Yes. Enter 0% for the APR to see straight-line amortization with and without the recast lump sum.
What happens if I keep paying the original amount?
The acceleration line estimates how many months you would shave off if you continue making the higher, pre-recast payment.
Are escrow payments affected?
No. Recasting only touches principal and interest. Taxes and insurance remain whatever your servicer bills each month.
Additional Information
- Most lenders allow one recast every 12 months and may charge a processing fee—confirm eligibility before wiring funds.
- Recasting keeps your original interest rate and term; it simply recalculates the amortization based on the lower balance.
- Breakeven compares the lump sum to monthly savings only and ignores opportunity cost or alternative investment returns.