Mortgage recast calculator
Type in what you still owe, your rate, the months left and your lump sum to see your new payment.
- Your new payment.
- Less by.
- Interest saved after the fee
- Time to earn back the fee.
This covers only the part of your payment that repays the loan and its interest. Taxes and insurance (escrow) are billed on their own. Loans backed by the government (FHA, VA and USDA loans) do not qualify for a recast.
01 Recast, pay extra principal, or do nothing
Say you owe $300,000 on your home and have $30,000 you could put toward it. You can see what each choice does in the table. With a recast, your monthly payment goes down. With extra principal, you put the money toward the loan without a recast. Your payment stays the same, and the loan is paid off sooner. If you do nothing, your loan stays just as it is.
The numbers below are for $300,000 at a 6.5% rate with 300 months left, a $30,000 payment and a $250 recast fee:
| Option | Recast | Extra principal | Do nothing |
|---|---|---|---|
| Monthly payment | $1,823.06 | $2,025.62 | $2,025.62 |
| Paid off in | 25 years | 19 years 9 months | 25 years |
| Interest saved after the fee | $30,519 | $97,670 | $0 |
Amortization schedule in Excel: a spreadsheet that lists every payment, month by month.
02 What does a mortgage recast mean?
With a mortgage recast, you pay one large amount (a lump sum) toward the principal, meaning what you still owe on your home loan. Another name some people use is re-amortization, which means recalculating your payment. A new, lower payment is then set by your servicer, the company that takes in your monthly payments. Your rate and end date do not change. You owe less, spread over the same months, so each payment is smaller.
Most servicers charge between $0 and $500 for a recast. No credit check is required, and there are no new closing costs. These are the fees charged to set up a new loan. Most standard home loans qualify for a recast, even large ones. Loans backed by the government cannot be recast. FHA, VA and USDA loans fall under this rule. Learn more by reading what a mortgage recast means or steps for recasting a mortgage.
03 Mortgage recast fees, lender by lender
These are the fees five big lenders charge for a recast, cheapest first. Some states have laws that cap the fee or do away with it. The minimum lump sum is the least extra money a lender will take for a recast. You can spread $5,000 across the past six months and Bank of America will still count it, even in several payments. Truist instead wants 10% of what you owe.
| Servicer | Recast fee | Minimum lump sum |
|---|---|---|
 Bank of America | No fee | $5,000 over six months |
 Wells Fargo | No fee | $10,000 |
 PennyMac | $250 | $10,000 |
 Rocket Mortgage | $250 | $10,000 |
 Truist | $250 | 10% of the balance |
04 Questions that come up about a recast
How is a recast mortgage figured out?
Start with what you still owe after the big payment. Then find the monthly payment that pays it off in the months left, at your same rate. For a $300,000 loan at 6.5% interest and 300 months to go, paying $30,000 in one payment brings the payment down from $2,025.62 to $1,823.06.
What could a mortgage recast save me?
With that loan, you pay $202.56 less each month for all 300 months left. Over those 25 years, you also pay $30,519 less in interest, even after the $250 fee. Pay that same $30,000 toward principal but skip the recast, and your payment stays at $2,025.62. The loan ends sooner, though, and you save even more interest: $97,670.
What does the calculator do to re-amortize the loan?
It works out the payment that clears what you still owe once your lump sum is paid, with the same end month and the same interest rate. When your servicer recasts your loan, it does this same math. For most home loans, the rules come from Fannie Mae, a big company that backs millions of home loans in the US and writes the rules they follow.
Will a recast change my rate or the payoff date?
No. Your rate and end date stay the same, and your payment goes down. If you pay the same lump sum as extra principal, your payment does not change and the loan ends sooner.
Data as of