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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.

Current mortgage balance

Rate

Months remaining

Lump sum principal curtailment

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.

Editorial noteMaintained by EveryCalc - Reviewed June 2026

EveryCalc calculators are designed for fast, practical estimates with transparent inputs and no required account. We use plain formulas, visible assumptions, and related tools so visitors can check the result from more than one angle.

Results are informational only. For financial, tax, legal, medical, construction, or other high-impact decisions, verify the output against primary sources or a qualified professional.

Learn more about our review process on the EveryCalc methodology page.

How this calculator works

What this page estimates

This Mortgage Recasting Savings Calculator is built to give a quick, browser-based estimate for mortgage recasting savings. 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. The inputs stay on the page during normal use, and the result should be treated as an estimate for planning, comparison, or education rather than professional advice.

Calculation approach

The calculator applies the standard relationship implied by the inputs, then formats the answer so it can be checked and reused. For finance tools, the most important step is using consistent units, rates, time periods, and assumptions before comparing the result with another calculator or outside quote.

Example workflow

For example, start with a realistic value you already know, change one input at a time, and watch how the answer moves. That makes it easier to tell whether the result is being driven by the main amount, the rate, the time period, or a unit conversion.

Practical checks

Use current, real-world numbers when the result affects money, health, tax, or legal decisions.
Run a low, base, and high case when the inputs are estimates.
Check the related calculators below when the next decision depends on a different assumption.

How to interpret the mortgage recasting savings result

Best use

Use the result as a planning number for comparing payments, rates, returns, tax reserves, or cash-flow choices before you request a quote or make a commitment.

Cross-check

Compare the answer with the contract, lender estimate, tax form, brokerage statement, payroll record, or invoice that will control the real-world outcome.

Watch for

Do not rely on a single optimistic rate, return, or fee assumption. Money pages work best when you run low, base, and high cases and keep professional advice separate from the estimate.

This page belongs to the Finance calculator library, so the answer should be read in the context of the decision you are modeling rather than as a universal rule.

Before relying on this mortgage recasting savings estimate

Most calculator mistakes come from the inputs, not the arithmetic. Use this short audit before you reuse the answer in a spreadsheet, quote, application, or important conversation.

Confirm source numbers

Match balances, rates, fees, taxes, income, and payment dates against the lender quote, payroll record, tax form, statement, invoice, or contract.

Separate cash flow from total cost

A lower monthly payment can still cost more over time if fees, interest, taxes, or a longer term are hidden in the structure.

Run conservative cases

Test at least one higher-cost or lower-return case before using the output for a purchase, refinance, investment, loan, or tax decision.

Rerun this page when the rate, price, term, fee, tax rule, income, expense, or expected holding period changes.

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.