Make a lump-sum principal payment and see your new (recast) monthly payment at the same rate and term.
| Input | Result |
|---|---|
| $300,000, 6%, 25 yrs, $50,000 lump | $1,932.90 → $1,610.75/mo |
| $200,000, 5%, 20 yrs, $20,000 lump | $1,319.91 → $1,187.92/mo |
| $400,000, 6.5%, 28 yrs, $100,000 lump | $2,588.06 → $1,941.05/mo |
You make a large lump-sum payment toward the principal and the lender re-amortizes the loan: your balance drops, your monthly payment is recalculated lower, but your interest rate and payoff date stay the same.
Refinancing replaces the loan with a new rate and term (with closing costs); recasting keeps your existing rate and term and simply lowers the payment. Recasting usually costs a small administrative fee (often a few hundred dollars).
No — most conventional loans do, but many FHA, VA and USDA loans do not. Confirm with your servicer before planning a recast. This calculator is an estimate for planning only.