{"id":67319,"date":"2026-10-21T09:51:28","date_gmt":"2026-10-21T06:51:28","guid":{"rendered":"https:\/\/wpcalc.com\/en\/?p=67319"},"modified":"2026-10-21T09:51:28","modified_gmt":"2026-10-21T06:51:28","slug":"mortgage-recast-calculator","status":"publish","type":"post","link":"https:\/\/wpcalc.com\/en\/finance\/mortgage-recast-calculator\/","title":{"rendered":"Mortgage Recast Calculator"},"content":{"rendered":"<section class=\"not-prose calculator-box\" aria-labelledby=\"calculator-title\"><div class=\"flex items-baseline sm:items-center justify-between gap-2 sm:gap-3\"><div class=\"flex flex-col sm:flex-row sm:items-center gap-2\"><span class=\"icon icon-calculator text-primary-700! text-base! dark:text-primary-300!\" aria-hidden=\"true\"><\/span><h2 id=\"calculator-title\" class=\"text-lg font-display font-bold\">Compare Your Mortgage Before and After a Recast<\/h2><\/div><div class=\"calcdash-favorite group\">\n  <button type=\"button\" class=\"favorite\" id=\"favorite\" data-favorite-id=\"67319\" data-favorite-title=\"Mortgage Recast\" data-favorite-url=\"https:\/\/wpcalc.com\/en\/finance\/mortgage-recast-calculator\/\" data-favorite-excerpt=\"See how a one-time lump-sum principal payment recasts your mortgage. Enter your loan details to compare your monthly P&amp;I, total interest and fee break-even before and after the recast.\" aria-label=\"Add to Favorites\" data-favorite-icon=\"icon icon-loan\">\n    <span class=\"icon icon-shape-star-empty\" aria-hidden=\"true\"><\/span>\n  <\/button>\n  <div class=\"calcdash-favorite__tip\" aria-hidden=\"true\">\n   <span class=\"favorite-tooltip\" id=\"favorite-tooltip\"><\/span>\n  <\/div>\n  <span class=\"sr-only\" role=\"status\" id=\"favorite-status\"><\/span>\n<\/div><\/div><form action=\"https:\/\/wpcalc.com\/en\/finance\/mortgage-recast-calculator\/\" method=\"POST\" class=\"calculator\" id=\"calculator-67319\" data-post=\"67319\"><fieldset class=\"fieldset-input is-2\"><legend class=\"sr-only\">Input Fields<\/legend><div class=\"field\" id=\"input-1\"><label for=\"field-1\">Original loan amount<\/label><input type=\"text\" name=\"original_loan_amount\" id=\"field-1\" aria-describedby=\"calc-unit-1 calc-info-1\" data-number inputmode=\"decimal\" autocomplete=\"off\" spellcheck=\"false\" min=\"0.01\" value=\"300000\"\/><div class=\"unit\" id=\"calc-unit-1\">$<\/div><small id=\"calc-info-1\">The amount you originally borrowed.<\/small><\/div><div class=\"field\" id=\"input-2\"><label for=\"field-2\">Interest rate<\/label><input type=\"text\" name=\"interest_rate\" id=\"field-2\" aria-describedby=\"calc-unit-2 calc-info-2\" data-number inputmode=\"decimal\" autocomplete=\"off\" spellcheck=\"false\" min=\"0\" max=\"100\" value=\"6.5\"\/><div class=\"unit\" id=\"calc-unit-2\">%<\/div><small id=\"calc-info-2\">Your annual rate. A recast does not change it.<\/small><\/div><div class=\"field\" id=\"input-3\"><label for=\"field-3\">Original term<\/label><div class=\"grid grid-cols-1\"><select id=\"field-3\" name=\"original_term\"><option value=\"15\">15 years<\/option><option value=\"20\">20 years<\/option><option value=\"30\" selected>30 years<\/option><\/select><svg class=\"pointer-events-none col-start-1 row-start-1 mr-2 size-5 self-center justify-self-end text-gray-500 sm:size-4\" viewBox=\"0 0 16 16\" fill=\"currentColor\" aria-hidden=\"true\" data-slot=\"icon\">\n              <path fill-rule=\"evenodd\" d=\"M4.22 6.22a.75.75 0 0 1 1.06 0L8 8.94l2.72-2.72a.75.75 0 1 1 1.06 1.06l-3.25 3.25a.75.75 0 0 1-1.06 0L4.22 7.28a.75.75 0 0 1 0-1.06Z\" clip-rule=\"evenodd\" \/>\n            <\/svg><\/div><\/div><div class=\"field\" id=\"input-4\"><label for=\"field-4\">Months already paid<\/label><input type=\"text\" name=\"months_already_paid\" id=\"field-4\" aria-describedby=\"calc-info-4\" data-number inputmode=\"decimal\" autocomplete=\"off\" spellcheck=\"false\" min=\"0\" value=\"48\"\/><small id=\"calc-info-4\">How many monthly payments you have made so far.<\/small><\/div><div class=\"field\" id=\"input-5\"><label for=\"field-5\">Current balance<\/label><div class=\"grid grid-cols-1\"><select id=\"field-5\" name=\"current_balance\"><option value=\"calc\" selected>Calculate from payments made<\/option><option value=\"enter\">Enter balance manually<\/option><\/select><svg class=\"pointer-events-none col-start-1 row-start-1 mr-2 size-5 self-center justify-self-end text-gray-500 sm:size-4\" viewBox=\"0 0 16 16\" fill=\"currentColor\" aria-hidden=\"true\" data-slot=\"icon\">\n              <path fill-rule=\"evenodd\" d=\"M4.22 6.22a.75.75 0 0 1 1.06 0L8 8.94l2.72-2.72a.75.75 0 1 1 1.06 1.06l-3.25 3.25a.75.75 0 0 1-1.06 0L4.22 7.28a.75.75 0 0 1 0-1.06Z\" clip-rule=\"evenodd\" \/>\n            <\/svg><\/div><\/div><div class=\"field\" id=\"input-6\" hidden><label for=\"field-6\">Current balance<\/label><input type=\"text\" name=\"current_balance\" id=\"field-6\" aria-describedby=\"calc-unit-6 calc-info-6\" data-number inputmode=\"decimal\" autocomplete=\"off\" spellcheck=\"false\" min=\"0.01\" value=\"285000\"\/><div class=\"unit\" id=\"calc-unit-6\">$<\/div><small id=\"calc-info-6\">Your unpaid principal balance right now.<\/small><\/div><div class=\"field\" id=\"input-7\"><label for=\"field-7\">Lump-sum recast payment<\/label><input type=\"text\" name=\"lumpsum_recast_payment\" id=\"field-7\" aria-describedby=\"calc-unit-7 calc-info-7\" data-number inputmode=\"decimal\" autocomplete=\"off\" spellcheck=\"false\" min=\"0.01\" value=\"50000\"\/><div class=\"unit\" id=\"calc-unit-7\">$<\/div><small id=\"calc-info-7\">The one-time principal payment sent with the recast request (most lenders require $10,000+).<\/small><\/div><div class=\"field\" id=\"input-8\"><label for=\"field-8\">Recast fee<\/label><input type=\"text\" name=\"recast_fee\" id=\"field-8\" aria-describedby=\"calc-unit-8 calc-info-8\" data-number inputmode=\"decimal\" autocomplete=\"off\" spellcheck=\"false\" min=\"0\" value=\"250\"\/><div class=\"unit\" id=\"calc-unit-8\">$<\/div><small id=\"calc-info-8\">Most lenders charge $150\u2013$500 to recast; enter 0 if yours is free.<\/small><\/div><\/fieldset><div class=\"buttons\"><button type=\"submit\" data-text=\"Re-Calculate\" id=\"calculate-button\" data-post=\"67319\">Calculate<\/button><button type=\"reset\">Reset<\/button><\/div><div class=\"field is-checkbox hidden!\" id=\"field-auto-calc\"><input type=\"checkbox\" id=\"auto-calc\"><label for=\"auto-calc\">Calculate automatically<\/label><small>If enabled, the result will update automatically when you change any value.<\/small><\/div><div class=\"fieldset-result is-hidden\" aria-labelledby=\"result-title\" aria-live=\"polite\" role=\"region\"> <h3 class=\"result-title bg-gradient-to-r from-primary-50 to-gray-50 dark:from-primary-900 dark:to-gray-800\" id=\"result-title\"><span class=\"icon icon-s-pulse\" aria-hidden=\"true\"><\/span> Recast Results<\/h3><div class=\"result-box\"><div class=\"field-result\" id=\"output-1\"><span class=\"field-title\"><span>Current monthly P&amp;I<\/span><\/span><span class=\"field-value\" id=\"result-1\" data-unit=\"$\"><\/span><button type=\"button\" class=\"copy-result\" data-tooltip=\"Copy Result\" aria-label=\"Copy Result\"><span class=\"copy-icon icon icon-document-copy\" aria-hidden=\"true\"><\/span><\/button><\/div><div class=\"field-result\" id=\"output-2\"><span class=\"field-title\"><span>New monthly P&amp;I after recast<\/span><\/span><span class=\"field-value\" id=\"result-2\" data-unit=\"$\"><\/span><button type=\"button\" class=\"copy-result\" data-tooltip=\"Copy Result\" aria-label=\"Copy Result\"><span class=\"copy-icon icon icon-document-copy\" aria-hidden=\"true\"><\/span><\/button><\/div><div class=\"field-result\" id=\"output-3\"><span class=\"field-title\"><span>Monthly savings<\/span><\/span><span class=\"field-value\" id=\"result-3\" data-unit=\"$\"><\/span><button type=\"button\" class=\"copy-result\" data-tooltip=\"Copy Result\" aria-label=\"Copy Result\"><span class=\"copy-icon icon icon-document-copy\" aria-hidden=\"true\"><\/span><\/button><\/div><div class=\"field-result\" id=\"output-4\"><span class=\"field-title\"><span>Total interest saved<\/span><\/span><span class=\"field-value\" id=\"result-4\" data-unit=\"$\"><\/span><button type=\"button\" class=\"copy-result\" data-tooltip=\"Copy Result\" aria-label=\"Copy Result\"><span class=\"copy-icon icon icon-document-copy\" aria-hidden=\"true\"><\/span><\/button><\/div><div class=\"field-result is-column\" id=\"output-5\"><span class=\"field-title\"><span>Recast fee break-even<\/span><\/span><span class=\"field-value\" id=\"result-5\"><\/span><button type=\"button\" class=\"copy-result\" data-tooltip=\"Copy Result\" aria-label=\"Copy Result\"><span class=\"copy-icon icon icon-document-copy\" aria-hidden=\"true\"><\/span><\/button><\/div><div class=\"field-result is-column\" id=\"output-6\"><span class=\"field-title\"><span>Same lump sum without a recast<\/span><\/span><span class=\"field-value\" id=\"result-6\"><\/span><button type=\"button\" class=\"copy-result\" data-tooltip=\"Copy Result\" aria-label=\"Copy Result\"><span class=\"copy-icon icon icon-document-copy\" aria-hidden=\"true\"><\/span><\/button><\/div><div class=\"field-result is-column\" id=\"output-7\"><span class=\"field-title\"><span>Year-by-year schedules<\/span><\/span><span class=\"field-value\" id=\"result-7\"><\/span><button type=\"button\" class=\"copy-result\" data-tooltip=\"Copy Result\" aria-label=\"Copy Result\"><span class=\"copy-icon icon icon-document-copy\" aria-hidden=\"true\"><\/span><\/button><\/div><\/div><div class=\"result-actions\"><button type=\"button\" class=\"copy-link\"><svg viewBox=\"0 0 20 20\" fill=\"currentColor\" aria-hidden=\"true\"><path d=\"M12.232 4.232a2.5 2.5 0 0 1 3.536 3.536l-1.225 1.224a.75.75 0 0 0 1.061 1.06l1.224-1.224a4 4 0 0 0-5.656-5.656l-3 3a4 4 0 0 0 .225 5.865.75.75 0 0 0 .977-1.138 2.5 2.5 0 0 1-.142-3.667l3-3Z\"\/><path d=\"M11.603 7.963a.75.75 0 0 0-.977 1.138 2.5 2.5 0 0 1 .142 3.667l-3 3a2.5 2.5 0 0 1-3.536-3.536l1.225-1.224a.75.75 0 0 0-1.061-1.06l-1.224 1.224a4 4 0 1 0 5.656 5.656l3-3a4 4 0 0 0-.225-5.865Z\"\/><\/svg><span class=\"copy-link__text\">Copy link to this calculation<\/span><\/button><span class=\"sr-only\" role=\"status\" id=\"copy-link-status\"><\/span><\/div><\/div><a href=\"#respond\" class=\"hidden transition-opacity duration-300 opacity-0 w-50 text-sm justify-center items-center gap-2 px-4 py-2 rounded bg-gray-200 text-gray-700 hover:bg-gray-300\" id=\"leave-comment\"><span class=\"icon icon-comments\" aria-hidden=\"true\"><\/span>Leave a Comment<\/a><\/form><\/section><section id=\"calc-reactions\" class=\"not-prose hidden my-12 bg-gradient-to-r from-primary-50 to-gray-50 border border-indigo-100 rounded-xl px-6 py-4 shadow-sm\" data-post=\"67319\" aria-live=\"polite\" aria-labelledby=\"calc-reactions-title\"><p id=\"calc-reactions-title\" class=\"text-sm text-gray-500 text-center mb-2\">How did this result make you feel?<\/p><div role=\"group\" aria-labelledby=\"calc-reactions-title\" class=\"grid grid-cols-3 sm:flex sm:flex-row sm:justify-around gap-4 sm:items-center sm:flex-wrap\"><button type=\"button\" aria-pressed=\"false\" class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"like\"><span class=\"reaction-count\" data-reaction-count=\"like\">0<\/span><span class=\"reaction text-3xl\" aria-hidden=\"true\">\ud83d\ude00 <\/span><span class=\"reaction-description font-medium\">Like <\/span><\/button><button type=\"button\" aria-pressed=\"false\" class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"helpful\"><span class=\"reaction-count\" data-reaction-count=\"helpful\">0<\/span><span class=\"reaction text-3xl\" aria-hidden=\"true\">\ud83d\udca1 <\/span><span class=\"reaction-description font-medium\">Helpful <\/span><\/button><button type=\"button\" aria-pressed=\"false\" class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"confused\"><span class=\"reaction-count\" data-reaction-count=\"confused\">0<\/span><span class=\"reaction text-3xl\" aria-hidden=\"true\">\ud83d\ude15 <\/span><span class=\"reaction-description font-medium\">Confused <\/span><\/button><button type=\"button\" aria-pressed=\"false\" class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"disappointed\"><span class=\"reaction-count\" data-reaction-count=\"disappointed\">0<\/span><span class=\"reaction text-3xl\" aria-hidden=\"true\">\ud83d\ude1e <\/span><span class=\"reaction-description font-medium\">Disappointed <\/span><\/button><button type=\"button\" aria-pressed=\"false\" class=\"reaction-btn flex flex-col items-center gap-1 text-sm text-gray-700 hover:text-primary-600 cursor-pointer transition-transform hover:scale-105\" data-reaction=\"inaccurate\"><span class=\"reaction-count\" data-reaction-count=\"inaccurate\">0<\/span><span class=\"reaction text-3xl\" aria-hidden=\"true\">\u274c <\/span><span class=\"reaction-description font-medium\">Inaccurate <\/span><\/button><\/div><div id=\"reaction-message\" class=\"hidden mt-8 rounded-md border border-primary-100 bg-white\/50 backdrop-blur-sm px-4 py-2 text-sm text-center shadow-sm\"><\/div><\/section><div class=\"calcdash-ad not-prose calcdash-ad--calc_result calcdash-ad--in-article\"><ins class=\"adsbygoogle\" style=\"display:block\" data-ad-client=\"ca-pub-1721569815777345\" data-ad-slot=\"6317458308\" data-ad-layout=\"in-article\" data-ad-format=\"fluid\"><\/ins><script>(adsbygoogle = window.adsbygoogle || []).push({});<\/script><\/div>\n<style id=\"wpcoderpro-inline-1\">.formula-box {\r\n\tborder-bottom: none !important;\r\n}<\/style><section class=\"formula-box\" aria-labelledby=\"formula-title\">\r\n\t<div id=\"formula-title\" class=\"not-prose font-display mb-4\"><span class=\"icon icon-formula\" aria-hidden=\"true\"><\/span><h2>Mortgage Recast Formula<\/h2><\/div>\r\n\t<figure class=\"not-prose formula\">\r\n\t\t<figcaption class=\"formula-title\">Formula<\/figcaption>\r\n\t\t<div class=\"text-base text-gray-800\" id=\"formula\">\n\\[ P = \\frac{B \\cdot r}{1-(1+r)^{-m}} \\]\n<\/div>\r\n\t<\/figure>\r\n\t<\/p>\n<p><strong>Where:<\/strong><\/p>\n<ul>\n<li>\\(P\\) \u2014 monthly principal-and-interest payment<\/li>\n<li>\\(B\\) \u2014 outstanding principal balance after the lump sum is applied: \\(B = B_{\\text{current}} - L\\)<\/li>\n<li>\\(L\\) \u2014 lump-sum recast payment<\/li>\n<li>\\(r\\) \u2014 monthly interest rate: \\(r = \\frac{\\text{annual rate}}{12 \\times 100}\\)<\/li>\n<li>\\(m\\) \u2014 number of months remaining in the original term<\/li>\n<\/ul>\n<p>The recast keeps your interest rate and payoff date exactly as they are \u2014 only the required monthly payment is recalculated on the smaller balance using the standard amortization formula.<\/p>\n<\/p>\n<p>\\[ P = \\frac{B \\cdot r}{1-(1+r)^{-m}} \\qquad L = B_{\\text{current}} - B \\qquad S = P_{\\text{old}} - P \\]<\/p>\n<\/p>\n<p>\\(P_{\\text{old}}\\) is the original scheduled payment, and \\(S\\) is the monthly savings. The total interest saved is the difference between the interest still owed on schedule and the interest owed after the recast.<\/p>\n<\/p>\n<p>\\[ P = \\frac{B \\cdot r}{1-(1+r)^{-m}} \\qquad S = P_{\\text{old}} - P \\qquad I_{\\text{saved}} = \\bigl(P_{\\text{old}} \\cdot m - B_{\\text{current}}\\bigr) - \\bigl(P \\cdot m - B\\bigr) \\]<\/p>\n<\/p>\n<p>\\(r\\) \u2014 monthly interest rate (annual rate \u00f7 12); \\(m\\) \u2014 months remaining; \\(L\\) \u2014 lump-sum payment; \\(P_{\\text{old}}\\) \u2014 current payment; \\(P\\) \u2014 payment after recast; \\(S\\) \u2014 monthly savings.<\/p>\n<p>\r\n<\/section>\n<style id=\"wpcoderpro-inline-459\">.calculation-box {\r\n\tborder-bottom: none !important;\r\n}<\/style><section id=\"calculation\" class=\"calculation-box\" aria-labelledby=\"calculation-title\">\r\n\t<div id=\"calculation-title\" class=\"not-prose font-display\"><span class=\"icon icon-unordered-list\" aria-hidden=\"true\"><\/span><h2>Mortgage Recast \u2013 Calculation Example<\/h2><\/div>\r\n\r\n<\/p>\n<p><strong>Example:<\/strong> you borrowed $300,000 at 6.5% for 30 years, have made 48 monthly payments, and now send a $50,000 lump sum with a $250 recast fee.<\/p>\n<p>\\[ r = \\frac{6.5}{12 \\times 100} = 0.0054167 \\]<\/p>\n<p>\\[ P_{\\text{old}} = \\frac{300{,}000 \\times 0.0054167}{1-(1.0054167)^{-360}} \\approx 1{,}896.20 \\]<\/p>\n<p>\\[ B_{\\text{current}} = 300{,}000(1.0054167)^{48} - 1{,}896.20 \\times \\frac{(1.0054167)^{48}-1}{0.0054167} \\approx 285{,}179 \\]<\/p>\n<p>\\[ P = \\frac{(285{,}179 - 50{,}000) \\times 0.0054167}{1-(1.0054167)^{-312}} = \\frac{235{,}179 \\times 0.0054167}{0.81463} \\approx 1{,}563.75 \\]<\/p>\n<p><strong>Result:<\/strong> your P&amp;I drops from $1,896.20 to about $1,563.75 \u2014 a monthly savings of roughly $332.45. Over the 312 months left on the loan you avoid about $53,700 in interest, and the $250 fee is recovered by the very first reduced payment.<\/p>\n<p>\n\r\n<\/section>\n<h2>How to Use the Mortgage Recast Calculator<\/h2>\n<ol>\n<li>Enter the <strong>Original loan amount<\/strong> you initially borrowed.<\/li>\n<li>Enter your <strong>Interest rate<\/strong> \u2014 a recast does not change it, so use the rate on your statement.<\/li>\n<li>Select the <strong>Original term<\/strong> (15, 20 or 30 years).<\/li>\n<li>Enter <strong>Months already paid<\/strong> \u2014 how many monthly payments you have made so far.<\/li>\n<li>Under <strong>Current balance<\/strong>, choose <em>Calculate from payments made<\/em> to let the calculator amortize the balance, or <em>Enter balance manually<\/em> and type the payoff balance from your statement if you have made extra payments in the past.<\/li>\n<li>Enter the <strong>Lump-sum recast payment<\/strong> you plan to send (most lenders require at least $10,000).<\/li>\n<li>Enter the <strong>Recast fee<\/strong> your servicer charges, or 0 if it is free.<\/li>\n<\/ol>\n<p>The results show your current monthly P&amp;I, the new payment after the recast, your monthly savings, the total interest saved, and how quickly the fee pays for itself. You also get a comparison of what happens if you make the same lump sum <em>without<\/em> asking for a recast, plus year-by-year schedules for both scenarios.<\/p>\n<h2>What a Mortgage Recast Is<\/h2>\n<p>A recast (also called re-amortization) is when your servicer applies a large one-time principal payment to your loan and then recalculates your monthly principal-and-interest payment over the <em>remaining<\/em> term. Your interest rate stays the same, your payoff date stays the same, and no new loan is originated. The only thing that changes is the required monthly payment, which drops because it is now amortizing a smaller balance.<\/p>\n<p>This makes a recast very different from a <a href=\"https:\/\/wpcalc.com\/en\/finance\/refinance-interest-savings\/\">refinance<\/a>, which replaces your loan with a new rate, a new term, and closing costs. It is also different from simply making extra principal payments: if you send a lump sum without a recast, your monthly payment stays the same and the loan is simply paid off early, which saves more interest but frees up no monthly cash flow. The calculator shows both paths side by side so you can weigh lower payments against maximum interest savings.<\/p>\n<p>When reading the results, focus on the trade-off, not just the savings. The <strong>monthly savings<\/strong> is how much cash flow you get back every month \u2014 useful if you want breathing room in your budget, a lower <a href=\"https:\/\/wpcalc.com\/en\/finance\/debt-to-income-ratio-calculator\/\">debt-to-income ratio<\/a>, or a safety margin against income loss. The <strong>total interest saved<\/strong> is what the recast saves you over the remaining term; the \u201csame lump sum without a recast\u201d figure shows you how much more interest you could save by keeping the payment unchanged instead, at the cost of a higher required payment.<\/p>\n<h2>Assumptions, Limitations and Practical Tips<\/h2>\n<ul>\n<li><strong>P&amp;I only.<\/strong> All figures cover principal and interest only. Your full monthly payment also includes escrow items \u2014 property taxes, homeowner's insurance, and mortgage insurance \u2014 which are unaffected by a recast.<\/li>\n<li><strong>Fixed-rate, fully amortizing loans.<\/strong> The calculation assumes a fixed rate and level payments. ARMs can often be recast too, but the future rate adjustments make the numbers here an approximation.<\/li>\n<li><strong>Servicer requirements.<\/strong> Most lenders require the loan to be current, a minimum lump sum (commonly $10,000), a small fee (typically $150\u2013$500), and sometimes a waiting period between recasts. Some loan types, such as certain government-backed or investor-modified loans, may not be eligible.<\/li>\n<li><strong>Balance accuracy matters.<\/strong> If you have made extra payments before, choose <em>Enter balance manually<\/em> and use the exact payoff balance from your statement \u2014 the amortized estimate will not reflect past extra principal.<\/li>\n<li><strong>Recast vs. payoff decision.<\/strong> A recast is best when you value lower required payments. If your goal is purely to minimize interest and you can comfortably afford the current payment, keeping the payment unchanged after the lump sum \u2014 or comparing against a <a href=\"https:\/\/wpcalc.com\/en\/finance\/mortgage-payoff-calculator-with-extra-payments\/\">payoff plan with extra payments<\/a> \u2014 usually wins financially.<\/li>\n<li><strong>Opportunity cost.<\/strong> Money used for the recast is money not invested or held as emergency savings; a lump sum applied to principal is illiquid. Consider whether earning a guaranteed, untaxed return equal to your mortgage rate beats your alternatives.<\/li>\n<\/ul>\n<p>Finally, remember that a recast never costs you the rate: if interest rates have fallen well below yours, compare the recast savings with a refinance before committing, and if rates have risen, a recast is usually the clear winner since you get payment relief without touching your rate.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>See how a one-time lump-sum principal payment recasts your mortgage. Enter your loan details to compare your monthly P&#038;I, total interest and fee break-even before and after the recast.<\/p>\n","protected":false},"author":3168,"featured_media":0,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5],"tags":[30],"class_list":["post-67319","post","type-post","status-publish","format-standard","hentry","category-finance","tag-mortgage"],"acf":[],"_links":{"self":[{"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/posts\/67319","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/users\/3168"}],"replies":[{"embeddable":true,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/comments?post=67319"}],"version-history":[{"count":1,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/posts\/67319\/revisions"}],"predecessor-version":[{"id":67320,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/posts\/67319\/revisions\/67320"}],"wp:attachment":[{"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/media?parent=67319"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/categories?post=67319"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wpcalc.com\/en\/wp-json\/wp\/v2\/tags?post=67319"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}