Lump sum mortgage payment calculator
Add the lump sum, balance, rate and months left to see your new payment.
- New payment amount.
- Amount it drops by.
- Interest saved after the fee
- How long until the fee is paid back.
Only principal and interest are counted; taxes and insurance (escrow) are billed on their own. FHA, VA and USDA loans do not qualify for a recast.
Lump sum options: recast, extra principal or nothing.
With a $300,000 balance at 6.5%, 300 months left, a $30,000 lump sum 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 left to pay | $276,918 | $210,016 | $307,686 |
| Interest saved after the fee | $30,519 | $97,670 | $0 |
| Fee | $250 | $0 | $0 |
| Fee paid back by the lower payment in | 2 months | No fee | No fee |
Amortization schedule in Excel gives you a list of every payment, month by month.
A recast after a lump sum payment
Paying a lump sum toward principal leads to one of two results. If you leave your payment as it is, the loan finishes early. Ask for a recast, though, and the payment falls for the remaining term. New payment for each lump sum on a $300,000 loan with 300 months left at 6.5%:
| Lump sum | New payment | Lower by |
|---|---|---|
| $10,000 | $1,958.10 | $67.52 |
| $20,000 | $1,890.58 | $135.04 |
| $30,000 | $1,823.06 | $202.56 |
| $40,000 | $1,755.54 | $270.08 |
| $50,000 | $1,688.02 | $337.60 |
| $75,000 | $1,519.22 | $506.41 |
| $100,000 | $1,350.41 | $675.21 |
Questions about lump sums
What does paying a lump sum on my mortgage do?
The balance falls right away. If you skip the recast, your payment stays the same and the loan is finished sooner. If you do a recast, the payment falls while the end date does not change.
At what point should the lump sum arrive?
Once the servicer confirms the recast and explains how to send it. If you send a principal-only payment without that, it may just shorten the loan.