US Mortgage Calculators Hub

Mortgage Recast Calculator

See how lump sum payments can reduce your monthly mortgage payments and save on interest

Calculate Your Savings

Your Mortgage Recast Results

$1,150.32
New Monthly Payment
$174.68
Monthly Savings
$38,500.00
Total Interest Savings

Payment Comparison

Current Monthly Payment: $1,325.00
New Monthly Payment: $1,150.32
Monthly Savings: $174.68
Original Loan Balance: $250,000.00
New Loan Balance: $225,000.00
Recast Fee: $250.00
Break-even Point: 1.4 months

Amortization Comparison

Year Original Principal Original Interest Recast Principal Recast Interest Savings

Mortgage Recast Calculator

A mortgage recast calculator is a powerful financial tool that helps homeowners understand how making a lump sum payment toward their mortgage principal can reduce their monthly payments and save thousands in interest over the life of the loan. Our free recast mortgage calculator USA tool provides instant calculations showing your potential savings, making it easier to decide if mortgage recasting is right for your financial situation.

Mortgage recasting is often overlooked by homeowners who receive windfalls such as tax refunds, bonuses, inheritance, or proceeds from asset sales. Unlike refinancing, which involves obtaining a new loan with potentially different terms and closing costs, recasting simply re-amortizes your existing loan based on the reduced principal balance. Our how to recast mortgage calculator helps you evaluate this cost-effective option.

How to Use the Mortgage Recast Calculator

  1. Enter Current Loan Balance: Input your current outstanding mortgage balance.
  2. Set Current Interest Rate: Enter the interest rate on your existing mortgage.
  3. Select Remaining Term: Enter how many years remain on your mortgage.
  4. Add Lump Sum Payment: Enter the amount you plan to pay toward your principal.
  5. Include Recast Fee: Enter any fees your lender charges for recasting (typically $150-$350).
  6. Calculate: Click the "Calculate Savings" button to see your potential savings.
  7. Review Results: Examine the payment comparison and amortization schedule.