Finance category
Mortgage, loan, investing, tax, and money calculators.
Mortgage Recast vs Refi Calculator
Recast keeps current rate; refi resets clock at new rate.
Better option
Recast (keep current rate)
Recast lifetime savings
$136,318
Refi lifetime savings
$46,387
How the math works
Recast: keep rate, reduce balance, recompute payment. Refi: new loan at new rate.
Old 5% beats new 6.5%, recast saves $108,000 vs refi saving $63,000. Recast better.
How to Use
- Enter current balance.
- Enter lump sum.
- Enter current rate %.
- Enter refi rate %.
- Enter remaining years.
- Enter refi closing cost.
- Read better option.
Frequently Asked Questions
Recast vs refi decision tree?
Recast better when: current rate ≤ market rate, want simple payment reduction, fees minimal ($250–500). Refi better when: current rate > market rate by 0.5%+, want term restructure, want cash out, want rate type change (ARM → fixed). Compare: recast monthly savings (free + small fee) vs refi monthly savings (more savings but $3–8k closing). Many lenders limit recasts to 1–2 per year. Conventional + jumbo most flexible; FHA/VA typically don't allow.
How does this debt analysis fit a workout strategy?
Workout, default, and recapitalization decisions depend on the gap between in-place debt and current asset value. Lenders evaluate cure cost, foreclosure timeline + cost, broker price opinion (BPO), and borrower equity. Borrowers evaluate equity in the property, refinance feasibility, and forbearance economics. This calculator provides one input to that multi-factor decision.
Discounted payoff (DPO) vs forbearance vs deed in lieu?
DPO: lender accepts less than full balance to avoid foreclosure cost, common with non-recourse and underwater assets. Forbearance: payment deferral 6–18 months, balance accrues, useful when value will recover. Deed in lieu: borrower transfers title to lender, faster than foreclosure but lender takes full risk. DPO often best when borrower has new capital + lender wants quick exit.
Special servicing dynamics?
CMBS loans transfer to special servicer at default or maturity default. Special servicer compensation aligns with workout, but timeline is 6–24 months and fees stack ($25–250k+ in costs). Whole-loan and balance-sheet lenders move faster but with less flexibility. Bridge and debt fund lenders most flexible. Time-to-resolution and total friction cost should be weighted in any borrower scenario.
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Mortgage Recast Calculator
Apply a lump sum to your mortgage and see the new monthly payment, interest saved, and faster payoff option at the same rate.
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Compute monthly payment reduction and lifetime savings from a mortgage recast after a large principal curtailment.