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Mortgage recast
What a lump sum re-amortized over the same term does to your payment — and how that compares to just paying it as extra principal.
A recast applies a lump sum and re-amortizes your loan over the same remaining term — lowering the payment while keeping your rate and payoff date. It's quiet, cheap, and not a refinance.
New monthly payment
$2,070/mo
down from $2,329/mo
A recast lowers the payment but keeps the same payoff date. The same lump as an extra payment instead would keep your current payment and pay the loan off about 6 yrs 11 mo sooner — lower payment vs. faster payoff is the real choice. Not all loans allow recasting — many conventional loans do; FHA, VA, and USDA generally don't, and jumbo varies by lender. Servicers usually require a minimum lump and charge a small fee. Confirm with your servicer.
Estimates only — not a quote, pre-approval, or offer of credit. Your actual terms come from a lender's Loan Estimate. Your servicer's recast terms decide — eligibility, minimum lump, fees, and timing vary, and some loans can't be recast.
Terms on this page
- RecastPaying a lump sum toward principal and having the lender re-amortize, lowering your payment at the same rate.
- AmortizationThe schedule by which your loan is paid off; early on most of each payment is interest, later most goes to principal.
- RefinanceReplacing your current mortgage with a new one, usually to lower the rate or change the term.
- PrepaymentPaying extra toward principal ahead of schedule, which shortens the loan and cuts total interest.
- ServicerThe company that collects your payments and manages escrow after closing — often not the lender you applied with.
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