About This Calculator
This mortgage recast calculator helps you estimate your new monthly payment after making a lump sum toward your loan principal. Recasting reduces monthly payments while keeping the original loan term and interest rate.
This tool assumes standard amortization and no change in interest rate or term. It supports zero-interest scenarios as well.
How to Use
- Enter your current loan balance, monthly payment, interest rate, and remaining loan term.
- Enter the lump sum payment you'd like to apply.
- The calculator shows your new monthly payment, monthly savings, and total savings over the loan term.
Frequently Asked Questions
What is mortgage recasting?
It's a process where you pay a lump sum toward your mortgage principal, and the lender recalculates a lower monthly payment based on the reduced balance.
Does recasting reduce my loan term?
No, it keeps the original term but reduces your monthly payment.
Is the interest rate affected?
Recasting does not change your interest rate. It simply recalculates the monthly payment.
Do all lenders allow recasting?
No, not all lenders offer this option. Check with your mortgage servicer for availability and fees.
Is the calculation accurate?
Yes, the calculator uses the standard amortization formula to compute new payments, accounting for lump sum payments and interest.