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Mortgage Recasting Savings Calculator

After a big principal payment, a recast re-amortizes your existing loan to lower the monthly payment — without changing rate or term. This calculator sizes monthly savings and lifetime benefit after the recast fee.

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New monthly payment

$1,899

Current monthly payment

$2,226

Monthly savings

$327

Lifetime savings (net of fee)

$106,157

How the math works

Recasting re-amortizes your existing loan at the same rate against a lower balance after a large principal payment. Keeps rate and term; lowers monthly payment. Typical $250-500 fee. Much cheaper than refinancing and retains a low legacy rate.

Not every loan allows recasting — FHA, VA, and some government programs don't. Conventional loans almost always do with a minimum lump sum (often $10k+). Ask servicer for the specific lump-sum minimum before the principal payment.

How to Use

  1. Enter current balance, rate, and months remaining.
  2. Enter the lump-sum principal curtailment you plan to make.
  3. Enter the recast fee — typically $250-500.

Frequently Asked Questions

Recast vs refinance?

Recast keeps your rate and term — just relowers payment. Refinance resets everything. In a high-rate environment with a low legacy rate, recast wins decisively. Refinance makes sense only when new rate beats current rate materially.

What's the minimum lump sum?

Varies by lender. $5,000-$10,000 is common. Some require $20k+. Ask your servicer for the policy before paying. Smaller curtailments are better applied without a recast — you just pay off faster at the same payment.

Which loan types allow recasting?

Conventional (Fannie/Freddie): almost always. FHA, VA, USDA: generally no. Jumbo: usually yes. Confirm with servicer before the lump-sum payment — unrecasted curtailment is still beneficial but less visible.

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