Mortgage Recast Calculator is used to calculate how much you can save each month by recasting your existing mortgage. Recasting calculator will show you whether recasting is a good option and how much interest payment you save by recasting your existing mortgage.
Mortgage Recast Results | ||||||
Recast Mortgage Balance: | $105,000.00 | |||||
Monthly Payment: | $972.85 | |||||
Total # Of Payments: | 134 | |||||
Start Date: | May, 2024 | |||||
Payoff Date: | Jun, 2035 | |||||
Total Interest Paid: | $25,361.97 | |||||
Total Payment: | $130,361.97 | |||||
Original Mortgage Vs. Mortgage Recast | ||||||
| Comparison | Original | Recast | ||||
|---|---|---|---|---|---|---|
| Monthly Payment | $1,115.43 | $972.85 | ||||
| Total Interest | $28,860.60 | $25,361.97 | ||||
| Fees | $0 | $250 | ||||
| Savings | $0 | $3,248.62 | ||||
Mortgage Recast Amortization Schedule | ||||||
| Payment Date | Payment # | Interest Paid | Principal Paid | Total Payment | Remaining Balance | |
| May, 2024 | 1 | $350.00 | $622.85 | $972.85 | $104,377.15 | |
| Jun, 2024 | 2 | $347.92 | $624.93 | $972.85 | $103,752.22 | |
| Jul, 2024 | 3 | $345.84 | $627.01 | $972.85 | $103,125.21 | |
| Aug, 2024 | 4 | $343.75 | $629.10 | $972.85 | $102,496.11 | |
| Sep, 2024 | 5 | $341.65 | $631.20 | $972.85 | $101,864.92 | |
| Oct, 2024 | 6 | $339.55 | $633.30 | $972.85 | $101,231.62 | |
| Nov, 2024 | 7 | $337.44 | $635.41 | $972.85 | $100,596.20 | |
| Dec, 2024 | 8 | $335.32 | $637.53 | $972.85 | $99,958.67 | |
| Jan, 2025 | 9 | $333.20 | $639.65 | $972.85 | $99,319.02 | |
| Feb, 2025 | 10 | $331.06 | $641.79 | $972.85 | $98,677.23 | |
| Mar, 2025 | 11 | $328.92 | $643.93 | $972.85 | $98,033.31 | |
| Apr, 2025 | 12 | $326.78 | $646.07 | $972.85 | $97,387.23 | |
| May, 2025 | 13 | $324.62 | $648.23 | $972.85 | $96,739.01 | |
| Jun, 2025 | 14 | $322.46 | $650.39 | $972.85 | $96,088.62 | |
| Jul, 2025 | 15 | $320.30 | $652.56 | $972.85 | $95,436.06 | |
| Aug, 2025 | 16 | $318.12 | $654.73 | $972.85 | $94,781.33 | |
| Sep, 2025 | 17 | $315.94 | $656.91 | $972.85 | $94,124.42 | |
| Oct, 2025 | 18 | $313.75 | $659.10 | $972.85 | $93,465.32 | |
| Nov, 2025 | 19 | $311.55 | $661.30 | $972.85 | $92,804.02 | |
| Dec, 2025 | 20 | $309.35 | $663.50 | $972.85 | $92,140.51 | |
| Jan, 2026 | 21 | $307.14 | $665.72 | $972.85 | $91,474.80 | |
| Feb, 2026 | 22 | $304.92 | $667.93 | $972.85 | $90,806.86 | |
| Mar, 2026 | 23 | $302.69 | $670.16 | $972.85 | $90,136.70 | |
| Apr, 2026 | 24 | $300.46 | $672.39 | $972.85 | $89,464.31 | |
| May, 2026 | 25 | $298.21 | $674.64 | $972.85 | $88,789.67 | |
| Jun, 2026 | 26 | $295.97 | $676.88 | $972.85 | $88,112.79 | |
| Jul, 2026 | 27 | $293.71 | $679.14 | $972.85 | $87,433.65 | |
| Aug, 2026 | 28 | $291.45 | $681.41 | $972.85 | $86,752.24 | |
| Sep, 2026 | 29 | $289.17 | $683.68 | $972.85 | $86,068.56 | |
| Oct, 2026 | 30 | $286.90 | $685.96 | $972.85 | $85,382.61 | |
| Nov, 2026 | 31 | $284.61 | $688.24 | $972.85 | $84,694.37 | |
| Dec, 2026 | 32 | $282.31 | $690.54 | $972.85 | $84,003.83 | |
| Jan, 2027 | 33 | $280.01 | $692.84 | $972.85 | $83,310.99 | |
| Feb, 2027 | 34 | $277.70 | $695.15 | $972.85 | $82,615.85 | |
| Mar, 2027 | 35 | $275.39 | $697.46 | $972.85 | $81,918.38 | |
| Apr, 2027 | 36 | $273.06 | $699.79 | $972.85 | $81,218.59 | |
| May, 2027 | 37 | $270.73 | $702.12 | $972.85 | $80,516.47 | |
| Jun, 2027 | 38 | $268.39 | $704.46 | $972.85 | $79,812.01 | |
| Jul, 2027 | 39 | $266.04 | $706.81 | $972.85 | $79,105.20 | |
| Aug, 2027 | 40 | $263.68 | $709.17 | $972.85 | $78,396.03 | |
| Sep, 2027 | 41 | $261.32 | $711.53 | $972.85 | $77,684.50 | |
| Oct, 2027 | 42 | $258.95 | $713.90 | $972.85 | $76,970.60 | |
| Nov, 2027 | 43 | $256.57 | $716.28 | $972.85 | $76,254.32 | |
| Dec, 2027 | 44 | $254.18 | $718.67 | $972.85 | $75,535.65 | |
| Jan, 2028 | 45 | $251.79 | $721.07 | $972.85 | $74,814.58 | |
| Feb, 2028 | 46 | $249.38 | $723.47 | $972.85 | $74,091.11 | |
| Mar, 2028 | 47 | $246.97 | $725.88 | $972.85 | $73,365.23 | |
| Apr, 2028 | 48 | $244.55 | $728.30 | $972.85 | $72,636.93 | |
| May, 2028 | 49 | $242.12 | $730.73 | $972.85 | $71,906.21 | |
| Jun, 2028 | 50 | $239.69 | $733.16 | $972.85 | $71,173.04 | |
| Jul, 2028 | 51 | $237.24 | $735.61 | $972.85 | $70,437.44 | |
| Aug, 2028 | 52 | $234.79 | $738.06 | $972.85 | $69,699.38 | |
| Sep, 2028 | 53 | $232.33 | $740.52 | $972.85 | $68,958.86 | |
| Oct, 2028 | 54 | $229.86 | $742.99 | $972.85 | $68,215.87 | |
| Nov, 2028 | 55 | $227.39 | $745.46 | $972.85 | $67,470.41 | |
| Dec, 2028 | 56 | $224.90 | $747.95 | $972.85 | $66,722.46 | |
| Jan, 2029 | 57 | $222.41 | $750.44 | $972.85 | $65,972.01 | |
| Feb, 2029 | 58 | $219.91 | $752.94 | $972.85 | $65,219.07 | |
| Mar, 2029 | 59 | $217.40 | $755.45 | $972.85 | $64,463.62 | |
| Apr, 2029 | 60 | $214.88 | $757.97 | $972.85 | $63,705.65 | |
| May, 2029 | 61 | $212.35 | $760.50 | $972.85 | $62,945.15 | |
| Jun, 2029 | 62 | $209.82 | $763.03 | $972.85 | $62,182.11 | |
| Jul, 2029 | 63 | $207.27 | $765.58 | $972.85 | $61,416.54 | |
| Aug, 2029 | 64 | $204.72 | $768.13 | $972.85 | $60,648.41 | |
| Sep, 2029 | 65 | $202.16 | $770.69 | $972.85 | $59,877.72 | |
| Oct, 2029 | 66 | $199.59 | $773.26 | $972.85 | $59,104.46 | |
| Nov, 2029 | 67 | $197.01 | $775.84 | $972.85 | $58,328.62 | |
| Dec, 2029 | 68 | $194.43 | $778.42 | $972.85 | $57,550.20 | |
| Jan, 2030 | 69 | $191.83 | $781.02 | $972.85 | $56,769.19 | |
| Feb, 2030 | 70 | $189.23 | $783.62 | $972.85 | $55,985.57 | |
| Mar, 2030 | 71 | $186.62 | $786.23 | $972.85 | $55,199.33 | |
| Apr, 2030 | 72 | $184.00 | $788.85 | $972.85 | $54,410.48 | |
| May, 2030 | 73 | $181.37 | $791.48 | $972.85 | $53,619.00 | |
| Jun, 2030 | 74 | $178.73 | $794.12 | $972.85 | $52,824.88 | |
| Jul, 2030 | 75 | $176.08 | $796.77 | $972.85 | $52,028.11 | |
| Aug, 2030 | 76 | $173.43 | $799.42 | $972.85 | $51,228.69 | |
| Sep, 2030 | 77 | $170.76 | $802.09 | $972.85 | $50,426.60 | |
| Oct, 2030 | 78 | $168.09 | $804.76 | $972.85 | $49,621.84 | |
| Nov, 2030 | 79 | $165.41 | $807.44 | $972.85 | $48,814.39 | |
| Dec, 2030 | 80 | $162.71 | $810.14 | $972.85 | $48,004.26 | |
| Jan, 2031 | 81 | $160.01 | $812.84 | $972.85 | $47,191.42 | |
| Feb, 2031 | 82 | $157.30 | $815.55 | $972.85 | $46,375.88 | |
| Mar, 2031 | 83 | $154.59 | $818.26 | $972.85 | $45,557.61 | |
| Apr, 2031 | 84 | $151.86 | $820.99 | $972.85 | $44,736.62 | |
| May, 2031 | 85 | $149.12 | $823.73 | $972.85 | $43,912.89 | |
| Jun, 2031 | 86 | $146.38 | $826.47 | $972.85 | $43,086.42 | |
| Jul, 2031 | 87 | $143.62 | $829.23 | $972.85 | $42,257.19 | |
| Aug, 2031 | 88 | $140.86 | $831.99 | $972.85 | $41,425.19 | |
| Sep, 2031 | 89 | $138.08 | $834.77 | $972.85 | $40,590.43 | |
| Oct, 2031 | 90 | $135.30 | $837.55 | $972.85 | $39,752.88 | |
| Nov, 2031 | 91 | $132.51 | $840.34 | $972.85 | $38,912.54 | |
| Dec, 2031 | 92 | $129.71 | $843.14 | $972.85 | $38,069.40 | |
| Jan, 2032 | 93 | $126.90 | $845.95 | $972.85 | $37,223.44 | |
| Feb, 2032 | 94 | $124.08 | $848.77 | $972.85 | $36,374.67 | |
| Mar, 2032 | 95 | $121.25 | $851.60 | $972.85 | $35,523.07 | |
| Apr, 2032 | 96 | $118.41 | $854.44 | $972.85 | $34,668.63 | |
| May, 2032 | 97 | $115.56 | $857.29 | $972.85 | $33,811.34 | |
| Jun, 2032 | 98 | $112.70 | $860.15 | $972.85 | $32,951.19 | |
| Jul, 2032 | 99 | $109.84 | $863.01 | $972.85 | $32,088.18 | |
| Aug, 2032 | 100 | $106.96 | $865.89 | $972.85 | $31,222.29 | |
| Sep, 2032 | 101 | $104.07 | $868.78 | $972.85 | $30,353.51 | |
| Oct, 2032 | 102 | $101.18 | $871.67 | $972.85 | $29,481.84 | |
| Nov, 2032 | 103 | $98.27 | $874.58 | $972.85 | $28,607.26 | |
| Dec, 2032 | 104 | $95.36 | $877.49 | $972.85 | $27,729.77 | |
| Jan, 2033 | 105 | $92.43 | $880.42 | $972.85 | $26,849.35 | |
| Feb, 2033 | 106 | $89.50 | $883.35 | $972.85 | $25,966.00 | |
| Mar, 2033 | 107 | $86.55 | $886.30 | $972.85 | $25,079.70 | |
| Apr, 2033 | 108 | $83.60 | $889.25 | $972.85 | $24,190.45 | |
| May, 2033 | 109 | $80.63 | $892.22 | $972.85 | $23,298.24 | |
| Jun, 2033 | 110 | $77.66 | $895.19 | $972.85 | $22,403.05 | |
| Jul, 2033 | 111 | $74.68 | $898.17 | $972.85 | $21,504.87 | |
| Aug, 2033 | 112 | $71.68 | $901.17 | $972.85 | $20,603.71 | |
| Sep, 2033 | 113 | $68.68 | $904.17 | $972.85 | $19,699.53 | |
| Oct, 2033 | 114 | $65.67 | $907.19 | $972.85 | $18,792.35 | |
| Nov, 2033 | 115 | $62.64 | $910.21 | $972.85 | $17,882.14 | |
| Dec, 2033 | 116 | $59.61 | $913.24 | $972.85 | $16,968.90 | |
| Jan, 2034 | 117 | $56.56 | $916.29 | $972.85 | $16,052.61 | |
| Feb, 2034 | 118 | $53.51 | $919.34 | $972.85 | $15,133.27 | |
| Mar, 2034 | 119 | $50.44 | $922.41 | $972.85 | $14,210.86 | |
| Apr, 2034 | 120 | $47.37 | $925.48 | $972.85 | $13,285.38 | |
| May, 2034 | 121 | $44.28 | $928.57 | $972.85 | $12,356.81 | |
| Jun, 2034 | 122 | $41.19 | $931.66 | $972.85 | $11,425.15 | |
| Jul, 2034 | 123 | $38.08 | $934.77 | $972.85 | $10,490.38 | |
| Aug, 2034 | 124 | $34.97 | $937.88 | $972.85 | $9,552.50 | |
| Sep, 2034 | 125 | $31.84 | $941.01 | $972.85 | $8,611.49 | |
| Oct, 2034 | 126 | $28.70 | $944.15 | $972.85 | $7,667.35 | |
| Nov, 2034 | 127 | $25.56 | $947.29 | $972.85 | $6,720.05 | |
| Dec, 2034 | 128 | $22.40 | $950.45 | $972.85 | $5,769.60 | |
| Jan, 2035 | 129 | $19.23 | $953.62 | $972.85 | $4,815.99 | |
| Feb, 2035 | 130 | $16.05 | $956.80 | $972.85 | $3,859.19 | |
| Mar, 2035 | 131 | $12.86 | $959.99 | $972.85 | $2,899.20 | |
| Apr, 2035 | 132 | $9.66 | $963.19 | $972.85 | $1,936.02 | |
| May, 2035 | 133 | $6.45 | $966.40 | $972.85 | $969.62 | |
| Jun, 2035 | 134 | $3.23 | $969.62 | $972.85 | $0.00 | |
What is mortgage recasting?
A mortgage recast is when a borrower makes a large payment to reduce the principal of the mortgage, and the lender re-amortizes the loan based on the new balance.The interest rate and the terms remain the same for the mortgage, but the monthly payments are reduced due to mortgage recasting.Since interest payment is recalculated every month based on the remaining balance, the lower monthly payment means the borrower would save a lot of money on interest payments throughout the loan.
How does recasting a mortgage work?
To recast a mortgage, borrowers need to make a one-time lump sum payment. Lenders usually have a minimum requirement for this payment, it can be anywhere from $5,000 to $10,000.There are also processing fees to recast a mortgage which could cost a few hundred dollars. Borrowers should talk to their lender and ask for the exact amount they have to pay for recasting.The fees should be well worth it if the lump sum is large because a reduced balance could save a borrower thousands in interest payments.
Mortgage recast pros and cons
There are advantages and disadvantages of recasting a mortgage depending on the borrower's situation. Following are the mortgage recast pros and cons.
Mortgage Recast Pros
- Save money on interest - depending on the size of the lump sum payment and the mortgage size, the borrower could save thousands and thousands of dollars on interest payments throughout the loan.
- Lower monthly payments - after the mortgage is re-amortized, the monthly payments will be lower from now on.
- No credit or income check - since recasting does not initiate a new loan as refinancing does, there is no credit or income check.
- Low upfront costs - the upfront costs are cheap compared to refinancing. Borrowers pay only a few hundred for recast.
While there are many good reasons for recasting, there are also downsides.
Mortgage Recast Cons
- The interest rate doesn't change - the interest rate remains the same for the mortgage. If the interest rate is declining, refinancing may save the borrower more money than recasting.
- The mortgage term remains the same - the borrower will not be able to pay off his mortgage any time earlier.
- Minimum payment - many lenders require a minimum lump sum payment for recasting. If the borrower doesn't have a large amount saved up, it may not be worth the effort after the upfront costs.
- Some lenders do not allow recasting - borrowers should check with their bank to see if they allow recasting before taking any action.
Recasting vs. Refinancing
A mortgage recast is different from refinancing because recasting does not initiate a new loan whereas refinancing involves applying and getting approved just like the mortgage process.A mortgage recast does not affect the interest rate and terms, the only thing that changes is the reduced monthly payments. On the other hand, refinancing could get you a reduced interest rate, and you can even change your terms.Recast and refinance can both save you money on interest payments, and may reduce your monthly payments, but they work differently. Following is a table that shows the differences between recast and refinances.
Mortgage Recasting Vs. Mortgage Refinancing | ||
| Recasting | Refinancing | |
|---|---|---|
| Fees | A few hundred processing fees | Closing costs up to 2% - 6% of the loan amount |
| Initiating a new loan? | No | Yes |
| Are proof of income, credit score, employment history, pay stubs, debt & assets, and tax documents needed? | No | Yes |
| Is a home appraisal needed? | No | Yes |
| Will your interest rate change? | No | Yes |
| Will your mortgage terms change? | No | Optional - you can choose a shorter or longer term. |
| Will your monthly payment change? | Yes, your monthly payments will be reduced as your mortgage balance is lower. | Yes, your monthly payments could go up or down depending on the new interest rate and the chosen term. If you are refinancing your mortgage from a 30-year term to a 15-year term, your monthly payment may go way up, but you will save in overall payments. |
There are times when refinancing makes more sense than recasting, and vice versa.
When to refinance a mortgage?
If the interest rate goes down sharply or is much lower than the interest rate on the borrower's mortgage, and the borrower has a strong credit score and good income with low debt, then refinancing is the better approach.By refinancing, the borrower will lower the interest rate on his new mortgage, which will save him more money than a recast. If he still wants to pay a lump sum, he can make a one-time extra payment to reduce his mortgage balance before or after refinancing.Another situation where refinance is a better choice than recasting is when a borrower wants to shorten the mortgage term. He can choose to refinance his 30-year term into a 15-year term because a 15-year term has a lower interest rate and the borrower will pay much less in interest.
When to recast?
If the interest rate goes up or unchanged, then recasting is more promising because the interest rate doesn't change on recast, and the fees are much lower for recasting than for refinancing.If a borrower has a low credit score or is self-employed and cannot provide consistent employment history, recasting might be better since there is no approval process.With a refinancing, the lender would check the borrower's credit score to determine the interest rate. Borrowers with low credit scores will end up with higher interest rates with refinancing.
How to calculate mortgage recast?
The calculation for mortgage recast is similar to calculating loan payments which can be found on the main page of our amortization calculator.We've developed this mortgage recasting calculator to save the borrower all the trouble of calculating manually. Here is the meaning of each field of our recast calculator.Remaining Balance - the remaining balance of the existing mortgage.Interest Rate - the interest rate of the mortgage.Current Monthly Payments - the monthly payments the borrower is paying right now.Recasting Payment - the one-time lump sum payment the borrower is planning to make.Recasting Cost - the costs of recasting the mortgage.
