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How much would a mortgage recast save you?

Lower your mortgage payment with a lump sum - no refinancing, no closing costs, just a $250 fee. See exactly how much you'd save.

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Current Mortgage

Your current mortgage rate
Remaining years

Recast Details

Your Recast Savings

Monthly payment drops by

$344

saving $61,424 in total interest

Before Recast

Payment$2,407/mo
Total interest$429,984

After Recast

Payment$2,063/mo
Total interest$368,559

Break-Even

1 mo

to recoup lump sum via savings

Net Benefit

$61,174

interest saved minus fee

Balance Over Time

See how your balance compares before and after recasting.

Current balance
After recast

The recast advantage: By applying a $50,000 lump sum and paying a $250 fee, your monthly payment drops from $2,407 to $2,063. No refinancing, no credit check, no closing costs - just a lower payment for the rest of your loan. Banks rarely advertise this option because it reduces their interest income.

How to Request a Recast

1

Call your loan servicer and ask about their mortgage recast (or re-amortization) process. Confirm minimum lump sum requirements and fees.

2

Make the lump sum payment toward your principal. This is typically a one-time wire transfer or check.

3

Submit the recast request - the bank re-amortizes your remaining balance over the same term at the same rate. Your new lower payment starts within 1-2 billing cycles.

4

Compare with refinancing - if rates have dropped significantly, refinancing might save even more.

Mortgage Recast Calculator
whatbankshide.com
Save $344/mo
Current payment$2,407/mo
New payment$2,063/mo
Interest saved$61,424
Net benefit$61,174
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How It Works

Enter your current mortgage balance, interest rate, and remaining term. Then specify how much you'd pay as a lump sum and the recast fee your lender charges (typically $150-$500).

The math: The calculator takes your remaining balance, subtracts the lump sum, and re-amortizes that new balance over your remaining term at your same interest rate. This gives you a new, lower monthly payment - the same calculation your bank performs during a recast.

Break-even analysis: The break-even period shows how many months of lower payments it takes for the monthly savings to recoup your lump sum plus the recast fee. After that point, every dollar saved is pure benefit.

Why banks don't advertise this: A recast reduces the total interest you pay over the life of the loan. Banks earn less money when you recast, so they rarely proactively offer it - but most are required to process one if you ask.

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Mortgage Early Payoff

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Amortization Schedule

See a full payment-by-payment breakdown of your mortgage

Frequently Asked Questions

What is a mortgage recast?
A mortgage recast (also called re-amortization) is when you make a large lump sum payment toward your principal, then your lender recalculates your monthly payment based on the new, lower balance - while keeping the same interest rate and remaining term. The result is a lower monthly payment for a small fee, typically $150-$500.
How is recasting different from refinancing?
Recast: same rate, same term, ~$250 fee, no credit check, no appraisal, takes 1-2 weeks. Refinance: potentially new rate, new term, $3,000-$10,000 in closing costs, requires credit check and appraisal, takes 30-45 days. Recasting is simpler and cheaper, but refinancing can get you a lower rate if rates have dropped significantly.
Who qualifies for a mortgage recast?
Most conventional (Fannie Mae/Freddie Mac) loans are eligible for recasting. FHA and VA loans typically do not qualify. Jumbo loans usually qualify as well. You'll need to be current on your payments and meet your lender's minimum lump sum requirement. Check with your loan servicer for specific eligibility.
How much do you need to recast?
Most lenders require a minimum lump sum payment of $5,000 to $10,000 to process a recast, though some may require more. The larger the lump sum, the bigger your monthly payment reduction. Common sources include inheritance, bonus, home sale proceeds, or accumulated savings.
When does a recast make more sense than refinancing?
Recasting is better when your current interest rate is already competitive (or lower than today's rates), you have cash available for a lump sum, you want to avoid the hassle and costs of refinancing, and you don't need to change your loan term. If rates have dropped 1%+ below your current rate, refinancing may save more despite the higher costs.