Finance category
Mortgage, loan, investing, tax, and money calculators.
Recast Fee Calculator
Mortgage recast reduces payment after lump-sum prepayment.
Monthly payment reduction
$250
New monthly payment
$1,252
Fee payback months
1.2
How the math works
Payment at new balance, same rate, same remaining term. Breakeven = fee ÷ monthly savings.
$300k at 3.5% 25yr = $1,504/mo. $250k = $1,253/mo. $251 savings. $300/$251 = 1.2 month payback.
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 Recast Fee Calculator is built to give a quick, browser-based estimate for recast fee. Mortgage recast reduces payment after lump-sum prepayment. 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 recast fee 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 recast fee 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.
- Enter lump-sum payment.
- Enter interest rate %.
- Enter years remaining.
- Enter recast fee.
- Read payment reduction + breakeven.
Frequently Asked Questions
What is recasting?
After lump-sum principal payment, lender re-amortizes remaining balance over remaining term. Reduces monthly payment. Does not change interest rate. Fee: $250-500 typical. Cheaper than refinancing (keep current rate). Available on most conventional loans; rarely on FHA/VA/USDA.
When does it make sense?
(1) Windfall lump-sum (bonus, inheritance, sale proceeds). (2) Low current interest rate you want to keep. (3) Want lower monthly payment (not faster payoff). (4) Hesitant to refinance into higher rate. (5) Self-employed with variable income wanting fixed monthly reduction. Doesn't make sense for those wanting faster payoff — regular prepayment achieves that without fee.
Recast vs refinance?
Recast: preserves rate, cheap ($250-500), no credit check, faster (2-4 weeks). Refinance: potentially new rate, expensive ($3-7k in fees), credit check required, slower (30-60 days). If current rate > new market rate, refinance. If current rate ≤ market, recast. Most 2020-2021 rate homeowners should recast, not refinance.
Payment reduction math?
Example: $300k balance at 3.5%, 25 years remaining, $50k lump-sum. New balance $250k recast over 25 years at 3.5% = $1,253/mo (vs $1,504/mo original = $251/mo savings). Total interest saved over 25 years: $75k. Recast fee $300 = 1.2 months savings payback. Financial logic: strong positive NPV.
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