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Mortgage, loan, investing, tax, and money calculators.
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.
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
- Enter current balance, rate, and months remaining.
- Enter the lump-sum principal curtailment you plan to make.
- 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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