Enter Loan Details
This calculator keeps your interest rate the same and recalculates payment over the remaining term.
Example Data Table
This sample assumes a 30-year loan, 6.50% rate, 60 payments made, a $50,000 lump sum, a $300 fee, and $450 escrow.
| Item | Example Value |
|---|---|
| Original loan amount | $350,000.00 |
| Original monthly P&I | $2,212.24 |
| Estimated current balance | $327,638.42 |
| New balance after recast | $277,638.42 |
| New monthly P&I | $1,874.63 |
| Monthly P&I savings | $337.60 |
| Estimated remaining interest savings | $51,281.07 |
Formula Used
A recast keeps the same interest rate, applies a principal reduction, and spreads the remaining balance across the remaining scheduled months.
Original monthly payment
Payment = P × r ÷ (1 − (1 + r)^−n)
New recast balance
New Balance = Current Balance − Lump Sum + Added Fee
New recast payment
Recast Payment = New Balance × r ÷ (1 − (1 + r)^−remaining months)
Interest savings
Interest Savings = Remaining Interest Without Recast − Remaining Interest After Recast
Here, P is principal, r is monthly interest rate, and n is the number of months. If rate is zero, the calculator uses simple principal divided by months.
How to Use This Calculator
- Enter the original loan amount, fixed rate, and original term.
- Enter how many monthly payments have already been made.
- Leave current balance blank for an estimated balance, or enter your lender balance directly.
- Enter the lump-sum principal reduction you plan to apply.
- Enter the recast fee and choose whether that fee is financed or paid separately.
- Add monthly escrow if you want a fuller monthly housing payment view.
- Press Calculate Recast to display results above the form.
- Review payment changes, interest savings, comparison rows, and the chart.
- Use the CSV and PDF buttons to save the comparison.
Frequently Asked Questions
1. What is a home loan recast?
A recast is a lender-approved reamortization. You pay a lump sum toward principal, keep the same interest rate, and receive a lower required monthly payment over the remaining term.
2. Does a recast change the loan term?
Usually no. The remaining scheduled term stays in place. The required payment changes because the balance is lower, not because the loan receives a brand-new term like refinancing.
3. Is recasting the same as refinancing?
No. Refinancing replaces the existing loan and can change rate, term, and closing costs. Recasting keeps the same loan but recalculates payment after a principal reduction.
4. Why use the current balance override?
Use it when your lender statement balance differs from the estimated balance. That can happen because of payment timing, prior extra principal, or rounding differences in actual servicing records.
5. Can a recast save interest?
Yes. The lump-sum payment lowers principal immediately, so future interest accrues on a smaller balance. Total savings depend on rate, remaining term, and the size of the principal reduction.
6. Why might keeping the old payment pay off sooner?
If you reduce principal but keep paying the old amount, more of each payment goes toward principal. That can shorten payoff compared with a recast that lowers your required payment.
7. Are escrow costs affected by recasting?
Normally no. Property taxes, insurance, and similar escrow items are separate from principal and interest. This calculator shows escrow so you can view a fuller monthly housing payment.
8. Is this calculator a lender quote?
No. It is an educational estimate. Actual lender rules, recast minimums, fees, timing, and accepted loan types vary, so confirm exact numbers with your servicer before acting.