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Mortgage recast calculator
Recasting lets you drop a lump sum onto your principal and have the lender re-amortize the loan to a lower payment — same rate, same payoff date, just a smaller monthly bill.
When a recast beats a refinance
A recast shines when you've got cash to put down but a rate worth keeping. You lower the payment without touching the interest rate or resetting the term.
It's cheap and quiet — a small servicer fee instead of a full refinance. The trade-off is that your rate and payoff date stay exactly as they are.
- Keeps your rate: ideal if you locked a low rate you don't want to give up.
- Low cost: a $150–$500 servicer fee versus thousands for a Michigan refinance.
- Minimum lump sum: lenders often require at least $5,000 to $10,000 toward principal.
- Not for all loans: FHA, VA, and USDA mortgages generally can't be recast.
Line the recast up against a rate-and-term swap in the refinance break-even calculator, or see how the same lump sum shortens the term instead using the payoff planner. The amortization view shows exactly how the re-amortized balance behaves.
Frequently asked questions
What is the difference between a recast and a refinance?
A recast keeps your existing loan, rate, and term — you just apply a lump sum to principal and the lender re-amortizes the smaller balance into lower payments. A refinance replaces the loan entirely with a new rate and new closing costs. If you already have a low rate, a recast protects it while a refinance risks losing it.
How much does a mortgage recast cost?
Typically a flat servicer fee of $150 to $500 — dramatically less than the several thousand dollars a Michigan refinance runs. There's no appraisal, no new title work, and no credit check. You do usually need a minimum lump sum, often $5,000 or $10,000, to qualify.
Can I recast any type of mortgage?
Most conventional loans allow recasting, but government-backed loans generally do not — FHA, VA, and USDA mortgages are usually excluded. Jumbo loans vary by lender. Before you count on it, confirm in writing that your servicer permits a recast and what minimum principal payment they require.