SwitchWizeSmart financial decisions
New

Mortgage Recast Calculator — Lower Your Payment Without Refinancing

Estimate how converting a lump-sum principal payment into home equity may change the payment and interest on a lender-approved recast.

Quick answer: A mortgage recast applies a lump-sum principal payment and recalculates the monthly payment without changing the rate or term. It can lower payments when refinancing is unattractive.

New Monthly Payment
$2,037
New Monthly Payment
$2,037
Monthly Rate
0
Current Monthly Payment
$2,376
New Balance After Lump Sum
$300,000
Monthly Payment — Before vs After
Before recast
$2,376/mo
95% of max
After recast-14.3%
$2,037/mo
82% of max
Monthly Savings
$339/mo
14.3% lower
$4,073/yr saved
Fee Recovery by Payment Savings
1 months
$250 fee ÷ $339/mo
Total Interest Saved
$55,655
Net of $250 recast fee
Interest — Current Path
$391,338
Over 26 yrs remaining
Interest — After Recast
$335,432
Same rate, same term
Recast vs Refinance — What's the Difference?
Recast
Refinance
Credit check
Often not required
Typically required
New loan
✗ No
✓ Yes
Entered fee/cost
$250 fee
Varies by quote
Rate changes
✗ Stays same
✓ New rate
Term resets
✗ Stays same
✓ Resets to 30yr
Eligibility
Servicer rules
Underwriting

Recast wins when: your rate is already good, you have a lump sum, and you don't want to restart the clock.

Fee-recovery context

The lower payment offsets the entered $250 recast fee in approximately 1 months. The $50,000 principal payment is converted to home equity, not recovered as investment profit; compare its lost liquidity and alternative use separately.

Monthly Savings
$339
Break-Even (months)
1
Total Interest (current path)
$391,338
Total Interest (after recast)
$335,432
Total Interest Saved
$55,655
Payment Reduction
14.29%
Diagnostic

A $50,000 lump sum recasts your payment from $2,376 to $2,037/mo — saving $339/mo.

The payment savings offset the entered recast fee in about $1 months. Net estimated interest savings after that fee: $55,655.

Compare current mortgage rates
What to do next

Compare Mortgage Lenders

Your action plan
  1. 1

    Compare the leading option against your current setup

    Estimate payment and interest changes after converting an entered lump sum to home equity, including recast-fee recovery.

  2. 2

    Compare the result against current market-rate options

    Assumptions change the answer, especially when rates, taxes, or timing matter.

  3. 3

    Save the result to Money Map or use the linked next action

    Turn the result into a prioritized action instead of treating it as a one-off number.

Compare Mortgage Lenders

This is an educational estimate, not tax, legal, investment, or lending advice. Tax rules, rates, and eligibility change and depend on your full situation. Confirm with a qualified professional or the provider before acting.

Calculator action path

Turn this result into a decision

Every SwitchWize calculator connects to a product comparison, rate context, guidance, alerts, and Money Map.

Rate authority hub
Compare
Compare Mortgage LendersMove from calculation to current product options.
Rate Trend
Track mortgage ratesUse market context before you decide when to act.
Guide
Mortgage Recast vs Refinance: Lower Your Payment Without the Closing CostsIf you are locked into a low mortgage rate, refinancing means giving it up. A recast lowers your payment for a few hundred dollars while keeping your rate. Here is when each one wins.
Money Map
Add this scenario to Money MapTurn the result into a saved opportunity or plan item.
Alert
Create a rate alertWatch the market instead of checking manually.

About mortgage rates

Mortgage rates depend on loan type (30-yr fixed, 15-yr fixed, ARM, FHA, VA, jumbo), your credit score, down payment, points paid, loan amount, property state, and whether you're purchasing or refinancing. The calculator above uses a representative market rate for payment estimates — your actual rate will vary.

For a personalized rate comparison, use the tool below to see lenders ranked by APR, loan type, and your profile.

Compare mortgage rates
30-yr fixed · 15-yr fixed · FHA · VA · ARM — ranked by APR
Compare rates →

Mortgage rates shown on SwitchWize compare pages include loan type, assumed FICO, LTV, and points. Representative only — verify all terms directly with the lender. Advertising disclosure

Frequently Asked Questions

Everything you need to know.

What is a mortgage recast?
A recast (also called re-amortization) is when you make a large lump-sum payment toward your principal and ask your lender to recalculate (re-amortize) your monthly payment based on the new, lower balance. The interest rate and remaining term stay the same — only the monthly payment drops.
How much does a mortgage recast cost?
Fees and minimum principal requirements vary by servicer. Enter the fee quoted by your servicer and confirm whether the loan is eligible before relying on the estimate.
Which loans can be recast?
Conventional loans (Fannie Mae/Freddie Mac) typically allow recasting. FHA, VA, and USDA loans generally do not. Jumbo loans vary by lender. Call your servicer to confirm eligibility and minimum lump-sum requirements (often $5,000–$10,000 minimum).
Recast vs refinance — which is better?
Recast wins when: your current rate is at or below today's rates, you have a lump sum, and you want to avoid the hassle of qualifying for a new loan. Refinance wins when: today's rates are meaningfully lower than yours (typically 0.75%+ lower), or you want to change your loan term.
Does recasting affect my interest rate or term?
No. Your interest rate stays exactly the same, and your remaining term stays exactly the same. Only the monthly payment drops because the balance is lower. This is the key advantage over refinancing, which resets both.
Is the Mortgage Recast Calculator — Lower Your Payment Without Refinancing free to use?
Yes. SwitchWize calculators are free, and you do not need an account to run scenarios or view the result.
Does using the Mortgage Recast Calculator — Lower Your Payment Without Refinancing affect my credit score?
No. Using a calculator does not trigger a credit check. A credit impact can occur only if you apply directly with a lender, card issuer, or provider.
Are the results personalized financial advice?
No. Calculator outputs are educational estimates based on the inputs you enter. Review assumptions and confirm terms directly with providers before making a financial decision.
What should I do after seeing the result?
Use the recommendation module on this page to compare mortgage lenders, or run Money Map to compare this home & mortgage decision with your other opportunities.
How does SwitchWize choose related offers?
Related offers are matched by the calculator surface (mortgage) and ranked using SwitchWize data such as rate, fees, trust signals, product fit, and switching friction. Paid relationships do not change organic ranking order.
How fresh are the rates and offers shown?
Rate and offer data is reviewed on a recurring cadence and every offer module shows review context or links to the methodology and disclosure pages.
Where can I see the ranking methodology?
The SwitchWize methodology page explains how rate freshness, editorial review, affiliate disclosure, and category ranking factors work.
Can Money Map use this result?
Yes. Money Map is the broader diagnostic path: it compares savings, mortgage, cards, and debt so you can see whether this calculator result is your highest-impact next move.

Why This Matters

A recast generally preserves the existing interest rate and remaining term, but eligibility, minimum principal payments, fees, and servicing requirements vary. The principal becomes equity; it is not a fee that monthly savings must earn back.

How to Use It

  1. 1Enter your current loan balance and interest rate
  2. 2Set the months remaining on your loan (360 − months paid)
  3. 3Enter your lump sum payment amount
  4. 4See the estimated payment change, interest difference, and recovery of the entered recast fee
Related calculators
Mortgage CalculatorSame-Term Refinance Savings EstimateMortgage Prepayment Calculator15 vs 30-Year Mortgage Calculator
Compare Mortgage Lenders
Mortgage Recast Calculator — Lower Your Payment Without Refinancing | SwitchWize