Compare current payment vs recast
Enter principal and interest only for the current payment. Taxes, insurance, HOA dues, PMI, escrow changes, opportunity cost, and tax effects are not modeled.
| Path | Monthly P&I | Upfront cash | Interest at horizon | Remaining balance | Total cash at horizon | Payoff timing |
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Methodology notes
Payment math
The current payment is either your input or the fixed-rate payment implied by current balance, rate, and remaining term. The recast payment uses the balance after the lump-sum principal payment over the same remaining term.
Break-even
Fee break-even divides the servicer recast fee by the monthly payment reduction. The principal lump sum is treated as equity-building cash, not a fee.
Cash and balance
Total cash outlay includes payments made through the holding period plus the lump sum and recast fee. Remaining balance is shown separately because lower debt also changes your equity.
Results are estimates for educational purposes only and are not financial advice. Confirm recast eligibility, fees, minimum curtailment, and investor rules with your servicer. See full disclosure.
Mortgage recast FAQ
Is a recast the same as refinancing?
No. A recast keeps the same loan and rate, while refinancing replaces the loan and can change rate, term, and closing costs.
Does recasting save interest?
The lump-sum principal payment usually saves interest. Recasting by itself mainly lowers the required payment; keeping the old payment after the lump sum typically saves more interest.
Which loans allow recasting?
Availability depends on the servicer and investor. Many conventional loans allow it, while FHA, VA, and USDA loans often do not.