Recasting Calculator
Remaining Balance	$	Interest Rate
Current Monthly Payment	$	Recasting Payment	$
Recasting Cost	$

Mortgage Recast Results
Recast Mortgage Balance:			$105,000.00
Monthly Payment:			$972.85
Total # Of Payments:			134
Start Date:			Sep, 2024
Payoff Date:			Oct, 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
Sep, 2024	1	$350.00	$622.85	$972.85	$104,377.15
Oct, 2024	2	$347.92	$624.93	$972.85	$103,752.22
Nov, 2024	3	$345.84	$627.01	$972.85	$103,125.21
Dec, 2024	4	$343.75	$629.10	$972.85	$102,496.11
Jan, 2025	5	$341.65	$631.20	$972.85	$101,864.92
Feb, 2025	6	$339.55	$633.30	$972.85	$101,231.62
Mar, 2025	7	$337.44	$635.41	$972.85	$100,596.20
Apr, 2025	8	$335.32	$637.53	$972.85	$99,958.67
May, 2025	9	$333.20	$639.65	$972.85	$99,319.02
Jun, 2025	10	$331.06	$641.79	$972.85	$98,677.23
Jul, 2025	11	$328.92	$643.93	$972.85	$98,033.31
Aug, 2025	12	$326.78	$646.07	$972.85	$97,387.23
Sep, 2025	13	$324.62	$648.23	$972.85	$96,739.01
Oct, 2025	14	$322.46	$650.39	$972.85	$96,088.62
Nov, 2025	15	$320.30	$652.56	$972.85	$95,436.06
Dec, 2025	16	$318.12	$654.73	$972.85	$94,781.33
Jan, 2026	17	$315.94	$656.91	$972.85	$94,124.42
Feb, 2026	18	$313.75	$659.10	$972.85	$93,465.32
Mar, 2026	19	$311.55	$661.30	$972.85	$92,804.02
Apr, 2026	20	$309.35	$663.50	$972.85	$92,140.51
May, 2026	21	$307.14	$665.72	$972.85	$91,474.80
Jun, 2026	22	$304.92	$667.93	$972.85	$90,806.86
Jul, 2026	23	$302.69	$670.16	$972.85	$90,136.70
Aug, 2026	24	$300.46	$672.39	$972.85	$89,464.31
Sep, 2026	25	$298.21	$674.64	$972.85	$88,789.67
Oct, 2026	26	$295.97	$676.88	$972.85	$88,112.79
Nov, 2026	27	$293.71	$679.14	$972.85	$87,433.65
Dec, 2026	28	$291.45	$681.41	$972.85	$86,752.24
Jan, 2027	29	$289.17	$683.68	$972.85	$86,068.56
Feb, 2027	30	$286.90	$685.96	$972.85	$85,382.61
Mar, 2027	31	$284.61	$688.24	$972.85	$84,694.37
Apr, 2027	32	$282.31	$690.54	$972.85	$84,003.83
May, 2027	33	$280.01	$692.84	$972.85	$83,310.99
Jun, 2027	34	$277.70	$695.15	$972.85	$82,615.85
Jul, 2027	35	$275.39	$697.46	$972.85	$81,918.38
Aug, 2027	36	$273.06	$699.79	$972.85	$81,218.59
Sep, 2027	37	$270.73	$702.12	$972.85	$80,516.47
Oct, 2027	38	$268.39	$704.46	$972.85	$79,812.01
Nov, 2027	39	$266.04	$706.81	$972.85	$79,105.20
Dec, 2027	40	$263.68	$709.17	$972.85	$78,396.03
Jan, 2028	41	$261.32	$711.53	$972.85	$77,684.50
Feb, 2028	42	$258.95	$713.90	$972.85	$76,970.60
Mar, 2028	43	$256.57	$716.28	$972.85	$76,254.32
Apr, 2028	44	$254.18	$718.67	$972.85	$75,535.65
May, 2028	45	$251.79	$721.07	$972.85	$74,814.58
Jun, 2028	46	$249.38	$723.47	$972.85	$74,091.11
Jul, 2028	47	$246.97	$725.88	$972.85	$73,365.23
Aug, 2028	48	$244.55	$728.30	$972.85	$72,636.93
Sep, 2028	49	$242.12	$730.73	$972.85	$71,906.21
Oct, 2028	50	$239.69	$733.16	$972.85	$71,173.04
Nov, 2028	51	$237.24	$735.61	$972.85	$70,437.44
Dec, 2028	52	$234.79	$738.06	$972.85	$69,699.38
Jan, 2029	53	$232.33	$740.52	$972.85	$68,958.86
Feb, 2029	54	$229.86	$742.99	$972.85	$68,215.87
Mar, 2029	55	$227.39	$745.46	$972.85	$67,470.41
Apr, 2029	56	$224.90	$747.95	$972.85	$66,722.46
May, 2029	57	$222.41	$750.44	$972.85	$65,972.01
Jun, 2029	58	$219.91	$752.94	$972.85	$65,219.07
Jul, 2029	59	$217.40	$755.45	$972.85	$64,463.62
Aug, 2029	60	$214.88	$757.97	$972.85	$63,705.65
Sep, 2029	61	$212.35	$760.50	$972.85	$62,945.15
Oct, 2029	62	$209.82	$763.03	$972.85	$62,182.11
Nov, 2029	63	$207.27	$765.58	$972.85	$61,416.54
Dec, 2029	64	$204.72	$768.13	$972.85	$60,648.41
Jan, 2030	65	$202.16	$770.69	$972.85	$59,877.72
Feb, 2030	66	$199.59	$773.26	$972.85	$59,104.46
Mar, 2030	67	$197.01	$775.84	$972.85	$58,328.62
Apr, 2030	68	$194.43	$778.42	$972.85	$57,550.20
May, 2030	69	$191.83	$781.02	$972.85	$56,769.19
Jun, 2030	70	$189.23	$783.62	$972.85	$55,985.57
Jul, 2030	71	$186.62	$786.23	$972.85	$55,199.33
Aug, 2030	72	$184.00	$788.85	$972.85	$54,410.48
Sep, 2030	73	$181.37	$791.48	$972.85	$53,619.00
Oct, 2030	74	$178.73	$794.12	$972.85	$52,824.88
Nov, 2030	75	$176.08	$796.77	$972.85	$52,028.11
Dec, 2030	76	$173.43	$799.42	$972.85	$51,228.69
Jan, 2031	77	$170.76	$802.09	$972.85	$50,426.60
Feb, 2031	78	$168.09	$804.76	$972.85	$49,621.84
Mar, 2031	79	$165.41	$807.44	$972.85	$48,814.39
Apr, 2031	80	$162.71	$810.14	$972.85	$48,004.26
May, 2031	81	$160.01	$812.84	$972.85	$47,191.42
Jun, 2031	82	$157.30	$815.55	$972.85	$46,375.88
Jul, 2031	83	$154.59	$818.26	$972.85	$45,557.61
Aug, 2031	84	$151.86	$820.99	$972.85	$44,736.62
Sep, 2031	85	$149.12	$823.73	$972.85	$43,912.89
Oct, 2031	86	$146.38	$826.47	$972.85	$43,086.42
Nov, 2031	87	$143.62	$829.23	$972.85	$42,257.19
Dec, 2031	88	$140.86	$831.99	$972.85	$41,425.19
Jan, 2032	89	$138.08	$834.77	$972.85	$40,590.43
Feb, 2032	90	$135.30	$837.55	$972.85	$39,752.88
Mar, 2032	91	$132.51	$840.34	$972.85	$38,912.54
Apr, 2032	92	$129.71	$843.14	$972.85	$38,069.40
May, 2032	93	$126.90	$845.95	$972.85	$37,223.44
Jun, 2032	94	$124.08	$848.77	$972.85	$36,374.67
Jul, 2032	95	$121.25	$851.60	$972.85	$35,523.07
Aug, 2032	96	$118.41	$854.44	$972.85	$34,668.63
Sep, 2032	97	$115.56	$857.29	$972.85	$33,811.34
Oct, 2032	98	$112.70	$860.15	$972.85	$32,951.19
Nov, 2032	99	$109.84	$863.01	$972.85	$32,088.18
Dec, 2032	100	$106.96	$865.89	$972.85	$31,222.29
Jan, 2033	101	$104.07	$868.78	$972.85	$30,353.51
Feb, 2033	102	$101.18	$871.67	$972.85	$29,481.84
Mar, 2033	103	$98.27	$874.58	$972.85	$28,607.26
Apr, 2033	104	$95.36	$877.49	$972.85	$27,729.77
May, 2033	105	$92.43	$880.42	$972.85	$26,849.35
Jun, 2033	106	$89.50	$883.35	$972.85	$25,966.00
Jul, 2033	107	$86.55	$886.30	$972.85	$25,079.70
Aug, 2033	108	$83.60	$889.25	$972.85	$24,190.45
Sep, 2033	109	$80.63	$892.22	$972.85	$23,298.24
Oct, 2033	110	$77.66	$895.19	$972.85	$22,403.05
Nov, 2033	111	$74.68	$898.17	$972.85	$21,504.87
Dec, 2033	112	$71.68	$901.17	$972.85	$20,603.71
Jan, 2034	113	$68.68	$904.17	$972.85	$19,699.53
Feb, 2034	114	$65.67	$907.19	$972.85	$18,792.35
Mar, 2034	115	$62.64	$910.21	$972.85	$17,882.14
Apr, 2034	116	$59.61	$913.24	$972.85	$16,968.90
May, 2034	117	$56.56	$916.29	$972.85	$16,052.61
Jun, 2034	118	$53.51	$919.34	$972.85	$15,133.27
Jul, 2034	119	$50.44	$922.41	$972.85	$14,210.86
Aug, 2034	120	$47.37	$925.48	$972.85	$13,285.38
Sep, 2034	121	$44.28	$928.57	$972.85	$12,356.81
Oct, 2034	122	$41.19	$931.66	$972.85	$11,425.15
Nov, 2034	123	$38.08	$934.77	$972.85	$10,490.38
Dec, 2034	124	$34.97	$937.88	$972.85	$9,552.50
Jan, 2035	125	$31.84	$941.01	$972.85	$8,611.49
Feb, 2035	126	$28.70	$944.15	$972.85	$7,667.35
Mar, 2035	127	$25.56	$947.29	$972.85	$6,720.05
Apr, 2035	128	$22.40	$950.45	$972.85	$5,769.60
May, 2035	129	$19.23	$953.62	$972.85	$4,815.99
Jun, 2035	130	$16.05	$956.80	$972.85	$3,859.19
Jul, 2035	131	$12.86	$959.99	$972.85	$2,899.20
Aug, 2035	132	$9.66	$963.19	$972.85	$1,936.02
Sep, 2035	133	$6.45	$966.40	$972.85	$969.62
Oct, 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.