Mortgage Recast Calculator
Mortgage Recast Calculator: Reduce Monthly Payments and Save on Interest
Use our Mortgage Recast Calculator to explore how making a lump-sum payment can lower your monthly mortgage payments and reduce the total interest paid over the loan term. A mortgage recast is a great option for homeowners looking to adjust their loan without refinancing, saving both time and money.
What is a Mortgage Recast?
A mortgage recast is when you apply a lump-sum payment toward your remaining loan balance, which lowers your monthly payment. The loan term and interest rate stay the same, but your overall financial burden is eased. Many lenders offer mortgage recasting as a way to reduce monthly payments without needing to refinance, making it a cost-effective solution.
Why Use a Mortgage Recast Calculator?
Using our Mortgage Recast Calculator can help you make informed financial decisions by:
- Estimating New Monthly Payments: See how much your monthly payment will decrease after making a lump-sum payment.
- Understanding Interest Savings: Discover how much interest you can save over the loan’s lifetime.
- Avoiding Refinancing Fees: Calculate the benefits of recasting without going through the time-consuming process of refinancing.
- Planning Extra Payments: Adjust your lump-sum payment amount to see how it affects your mortgage.
How to Use the Mortgage Recast Calculator
Follow these steps to calculate the benefits of recasting your mortgage:
- Current Loan Amount ($):
Enter your remaining loan balance. - Interest Rate (%):
Input your mortgage’s current interest rate. - Remaining Term (Years):
Provide the number of years left on your mortgage term. - Lump-Sum Payment ($):
Enter the amount you plan to pay toward your loan balance. - Monthly Payment Before Recast ($):
Input your current monthly payment amount.
Click “Calculate” to see the new loan balance, updated monthly payment, and total interest savings.
How the Mortgage Recast Calculator Works
- New Loan Balance: Your new loan balance is calculated by subtracting the lump-sum payment from your current loan amount.
- New Monthly Payment: Using the new balance, the calculator adjusts the payment amount based on the remaining term and interest rate.
- Total Interest Savings: The tool compares the interest costs before and after the recast to show how much you’ll save over the loan’s term.
Benefits of Mortgage Recasting
- Lower Monthly Payments: Enjoy reduced financial pressure without extending your loan term.
- No Need to Refinance: Avoid refinancing fees and complex paperwork.
- Maintain Your Interest Rate: If rates have increased, recasting allows you to keep your original rate.
- Flexible Lump-Sum Payments: Adjust the lump-sum amount to fit your financial situation.
Use the Mortgage Recast Calculator to Plan Your Financial Future
Make the most of your mortgage by recasting it. Use our Mortgage Recast Calculator to instantly see how a lump-sum payment can lower your monthly payments and save you thousands in interest. Take control of your financial future today—calculate your new loan terms and enjoy a lighter monthly payment!
Frequently Asked Questions (FAQ)
A mortgage recast allows borrowers to reduce their monthly mortgage payments by making a large lump-sum payment toward the loan’s principal.
After making a lump-sum payment, the lender recalculates the monthly payment based on the new, lower balance while keeping the same interest rate and loan term.
The main benefit is lower monthly payments without the need to refinance. It also helps save on interest payments over the loan’s life.
Yes, lenders may charge a small fee for recasting, typically between $100 to $500, but it’s still cheaper than refinancing.
No, not all loans are eligible for recasting. Typically, conventional loans allow it, but some lenders or loan types, like FHA or VA loans, may not offer this option.