Mortgage Recast Calculator
Recast Analysis
Current Payment: $0
New Payment: $0
Monthly Savings: $0
Total Interest Savings: $0
New Loan Balance: $0
Understanding Mortgage Recasting
Mortgage recasting is when you make a large lump sum payment toward your principal balance and then recalculate your monthly payments based on the new balance while keeping the original term and interest rate.
Benefits of Recasting
Key Advantages
- Lower monthly payments
- Reduced total interest
- Same loan term
- Original interest rate
- No credit check needed
When to Consider Recasting
- Inheritance received
- Bonus payment
- Home sale proceeds
- Investment returns
- Windfall money
Recast vs. Refinance
- Keep original rate
- Lower fees
- Simpler process
- No appraisal needed
- Same loan term
Important Considerations
- Minimum lump sum required
- Lender approval needed
- Processing fees
- Timing restrictions
- Loan type eligibility
Frequently Asked Questions
What is mortgage recasting?
Mortgage recasting is applying a lump sum payment to your principal balance and recalculating monthly payments while keeping the original term and rate.
How much can I save with recasting?
Savings depend on your lump sum amount, remaining term, and interest rate. Larger lump sums and higher interest rates result in greater savings.
Who qualifies for recasting?
Most conventional mortgages are eligible for recasting. FHA and VA loans typically don't allow recasting. Check with your lender for specific requirements.
Mortgage Disclaimer
This calculator provides estimates only. Actual recast terms and savings may vary. Consult with your mortgage lender for specific details about recasting your loan.