mortgage calculator

Mortgage Recasting Calculator

Mortgage Recasting Calculator to calculate the new monthly payment if you are planning to recast your mortgage. The free recast calculator is calculated based on the balance remaining on your existing mortgage, current monthly payment, and the interest rate.

Recast Calculator

Remaining Balance
$
Interest Rate
Current Monthly Payment
$
Recasting Payment
$
Recasting Cost
$ Check Local Mortgage Rates

Mortgage Recast Results

Recast Mortgage Balance:
$90,000.00
Monthly Payment:
$643.15
Total # Of Payments:
288
Start Date:
Feb, 2025
Payoff Date:
Jan, 2049
Total Interest Paid:
$95,226.71
Total Payment:
$185,226.71

Original Mortgage Vs. Mortgage Recast

Comparison Original Recast
Monthly Payment $715.43 $643.15
Total Interest $105,437.83 $95,226.71
Fees $0 $300
Savings $0 $9,911.13

Mortgage Recasting Amortization Schedule

Payment Date Payment # Interest Paid Principal Paid Total Payment Remaining Balance
Feb, 2025 1 $521.25 $121.90 $643.15 $89,878.10
Mar, 2025 2 $520.54 $122.60 $643.15 $89,755.50
Apr, 2025 3 $519.83 $123.31 $643.15 $89,632.18
May, 2025 4 $519.12 $124.03 $643.15 $89,508.15
Jun, 2025 5 $518.40 $124.75 $643.15 $89,383.41
Jul, 2025 6 $517.68 $125.47 $643.15 $89,257.94
Aug, 2025 7 $516.95 $126.20 $643.15 $89,131.74
Sep, 2025 8 $516.22 $126.93 $643.15 $89,004.82
Oct, 2025 9 $515.49 $127.66 $643.15 $88,877.15
Nov, 2025 10 $514.75 $128.40 $643.15 $88,748.75
Dec, 2025 11 $514.00 $129.15 $643.15 $88,619.61
Jan, 2026 12 $513.26 $129.89 $643.15 $88,489.71
Feb, 2026 13 $512.50 $130.65 $643.15 $88,359.07
Mar, 2026 14 $511.75 $131.40 $643.15 $88,227.67
Apr, 2026 15 $510.99 $132.16 $643.15 $88,095.50
May, 2026 16 $510.22 $132.93 $643.15 $87,962.57
Jun, 2026 17 $509.45 $133.70 $643.15 $87,828.88
Jul, 2026 18 $508.68 $134.47 $643.15 $87,694.40
Aug, 2026 19 $507.90 $135.25 $643.15 $87,559.15
Sep, 2026 20 $507.11 $136.03 $643.15 $87,423.12
Oct, 2026 21 $506.33 $136.82 $643.15 $87,286.29
Nov, 2026 22 $505.53 $137.62 $643.15 $87,148.68
Dec, 2026 23 $504.74 $138.41 $643.15 $87,010.27
Jan, 2027 24 $503.93 $139.21 $643.15 $86,871.05
Feb, 2027 25 $503.13 $140.02 $643.15 $86,731.03
Mar, 2027 26 $502.32 $140.83 $643.15 $86,590.20
Apr, 2027 27 $501.50 $141.65 $643.15 $86,448.56
May, 2027 28 $500.68 $142.47 $643.15 $86,306.09
Jun, 2027 29 $499.86 $143.29 $643.15 $86,162.80
Jul, 2027 30 $499.03 $144.12 $643.15 $86,018.67
Aug, 2027 31 $498.19 $144.96 $643.15 $85,873.72
Sep, 2027 32 $497.35 $145.80 $643.15 $85,727.92
Oct, 2027 33 $496.51 $146.64 $643.15 $85,581.28
Nov, 2027 34 $495.66 $147.49 $643.15 $85,433.79
Dec, 2027 35 $494.80 $148.34 $643.15 $85,285.45
Jan, 2028 36 $493.94 $149.20 $643.15 $85,136.24
Feb, 2028 37 $493.08 $150.07 $643.15 $84,986.17
Mar, 2028 38 $492.21 $150.94 $643.15 $84,835.24
Apr, 2028 39 $491.34 $151.81 $643.15 $84,683.43
May, 2028 40 $490.46 $152.69 $643.15 $84,530.74
Jun, 2028 41 $489.57 $153.57 $643.15 $84,377.16
Jul, 2028 42 $488.68 $154.46 $643.15 $84,222.70
Aug, 2028 43 $487.79 $155.36 $643.15 $84,067.34
Sep, 2028 44 $486.89 $156.26 $643.15 $83,911.08
Oct, 2028 45 $485.99 $157.16 $643.15 $83,753.92
Nov, 2028 46 $485.07 $158.07 $643.15 $83,595.85
Dec, 2028 47 $484.16 $158.99 $643.15 $83,436.86
Jan, 2029 48 $483.24 $159.91 $643.15 $83,276.95
Feb, 2029 49 $482.31 $160.84 $643.15 $83,116.11
Mar, 2029 50 $481.38 $161.77 $643.15 $82,954.34
Apr, 2029 51 $480.44 $162.70 $643.15 $82,791.64
May, 2029 52 $479.50 $163.65 $643.15 $82,627.99
Jun, 2029 53 $478.55 $164.59 $643.15 $82,463.40
Jul, 2029 54 $477.60 $165.55 $643.15 $82,297.85
Aug, 2029 55 $476.64 $166.51 $643.15 $82,131.34
Sep, 2029 56 $475.68 $167.47 $643.15 $81,963.87
Oct, 2029 57 $474.71 $168.44 $643.15 $81,795.43
Nov, 2029 58 $473.73 $169.42 $643.15 $81,626.01
Dec, 2029 59 $472.75 $170.40 $643.15 $81,455.62
Jan, 2030 60 $471.76 $171.38 $643.15 $81,284.23
Feb, 2030 61 $470.77 $172.38 $643.15 $81,111.86
Mar, 2030 62 $469.77 $173.38 $643.15 $80,938.48
Apr, 2030 63 $468.77 $174.38 $643.15 $80,764.10
May, 2030 64 $467.76 $175.39 $643.15 $80,588.71
Jun, 2030 65 $466.74 $176.41 $643.15 $80,412.31
Jul, 2030 66 $465.72 $177.43 $643.15 $80,234.88
Aug, 2030 67 $464.69 $178.45 $643.15 $80,056.42
Sep, 2030 68 $463.66 $179.49 $643.15 $79,876.94
Oct, 2030 69 $462.62 $180.53 $643.15 $79,696.41
Nov, 2030 70 $461.58 $181.57 $643.15 $79,514.83
Dec, 2030 71 $460.52 $182.62 $643.15 $79,332.21
Jan, 2031 72 $459.47 $183.68 $643.15 $79,148.53
Feb, 2031 73 $458.40 $184.75 $643.15 $78,963.78
Mar, 2031 74 $457.33 $185.82 $643.15 $78,777.96
Apr, 2031 75 $456.26 $186.89 $643.15 $78,591.07
May, 2031 76 $455.17 $187.97 $643.15 $78,403.10
Jun, 2031 77 $454.08 $189.06 $643.15 $78,214.03
Jul, 2031 78 $452.99 $190.16 $643.15 $78,023.87
Aug, 2031 79 $451.89 $191.26 $643.15 $77,832.61
Sep, 2031 80 $450.78 $192.37 $643.15 $77,640.25
Oct, 2031 81 $449.67 $193.48 $643.15 $77,446.77
Nov, 2031 82 $448.55 $194.60 $643.15 $77,252.16
Dec, 2031 83 $447.42 $195.73 $643.15 $77,056.43
Jan, 2032 84 $446.29 $196.86 $643.15 $76,859.57
Feb, 2032 85 $445.15 $198.00 $643.15 $76,661.57
Mar, 2032 86 $444.00 $199.15 $643.15 $76,462.42
Apr, 2032 87 $442.84 $200.30 $643.15 $76,262.11
May, 2032 88 $441.68 $201.46 $643.15 $76,060.65
Jun, 2032 89 $440.52 $202.63 $643.15 $75,858.02
Jul, 2032 90 $439.34 $203.80 $643.15 $75,654.22
Aug, 2032 91 $438.16 $204.98 $643.15 $75,449.23
Sep, 2032 92 $436.98 $206.17 $643.15 $75,243.06
Oct, 2032 93 $435.78 $207.37 $643.15 $75,035.69
Nov, 2032 94 $434.58 $208.57 $643.15 $74,827.13
Dec, 2032 95 $433.37 $209.77 $643.15 $74,617.35
Jan, 2033 96 $432.16 $210.99 $643.15 $74,406.36
Feb, 2033 97 $430.94 $212.21 $643.15 $74,194.15
Mar, 2033 98 $429.71 $213.44 $643.15 $73,980.71
Apr, 2033 99 $428.47 $214.68 $643.15 $73,766.03
May, 2033 100 $427.23 $215.92 $643.15 $73,550.11
Jun, 2033 101 $425.98 $217.17 $643.15 $73,332.94
Jul, 2033 102 $424.72 $218.43 $643.15 $73,114.52
Aug, 2033 103 $423.45 $219.69 $643.15 $72,894.82
Sep, 2033 104 $422.18 $220.97 $643.15 $72,673.86
Oct, 2033 105 $420.90 $222.25 $643.15 $72,451.61
Nov, 2033 106 $419.62 $223.53 $643.15 $72,228.08
Dec, 2033 107 $418.32 $224.83 $643.15 $72,003.25
Jan, 2034 108 $417.02 $226.13 $643.15 $71,777.12
Feb, 2034 109 $415.71 $227.44 $643.15 $71,549.68
Mar, 2034 110 $414.39 $228.76 $643.15 $71,320.93
Apr, 2034 111 $413.07 $230.08 $643.15 $71,090.85
May, 2034 112 $411.73 $231.41 $643.15 $70,859.43
Jun, 2034 113 $410.39 $232.75 $643.15 $70,626.68
Jul, 2034 114 $409.05 $234.10 $643.15 $70,392.58
Aug, 2034 115 $407.69 $235.46 $643.15 $70,157.12
Sep, 2034 116 $406.33 $236.82 $643.15 $69,920.30
Oct, 2034 117 $404.96 $238.19 $643.15 $69,682.10
Nov, 2034 118 $403.58 $239.57 $643.15 $69,442.53
Dec, 2034 119 $402.19 $240.96 $643.15 $69,201.57
Jan, 2035 120 $400.79 $242.36 $643.15 $68,959.21
Feb, 2035 121 $399.39 $243.76 $643.15 $68,715.45
Mar, 2035 122 $397.98 $245.17 $643.15 $68,470.28
Apr, 2035 123 $396.56 $246.59 $643.15 $68,223.69
May, 2035 124 $395.13 $248.02 $643.15 $67,975.67
Jun, 2035 125 $393.69 $249.46 $643.15 $67,726.22
Jul, 2035 126 $392.25 $250.90 $643.15 $67,475.32
Aug, 2035 127 $390.79 $252.35 $643.15 $67,222.96
Sep, 2035 128 $389.33 $253.82 $643.15 $66,969.15
Oct, 2035 129 $387.86 $255.29 $643.15 $66,713.86
Nov, 2035 130 $386.38 $256.76 $643.15 $66,457.10
Dec, 2035 131 $384.90 $258.25 $643.15 $66,198.85
Jan, 2036 132 $383.40 $259.75 $643.15 $65,939.10
Feb, 2036 133 $381.90 $261.25 $643.15 $65,677.85
Mar, 2036 134 $380.38 $262.76 $643.15 $65,415.08
Apr, 2036 135 $378.86 $264.29 $643.15 $65,150.80
May, 2036 136 $377.33 $265.82 $643.15 $64,884.98
Jun, 2036 137 $375.79 $267.36 $643.15 $64,617.63
Jul, 2036 138 $374.24 $268.90 $643.15 $64,348.72
Aug, 2036 139 $372.69 $270.46 $643.15 $64,078.26
Sep, 2036 140 $371.12 $272.03 $643.15 $63,806.23
Oct, 2036 141 $369.54 $273.60 $643.15 $63,532.63
Nov, 2036 142 $367.96 $275.19 $643.15 $63,257.44
Dec, 2036 143 $366.37 $276.78 $643.15 $62,980.66
Jan, 2037 144 $364.76 $278.39 $643.15 $62,702.27
Feb, 2037 145 $363.15 $280.00 $643.15 $62,422.27
Mar, 2037 146 $361.53 $281.62 $643.15 $62,140.65
Apr, 2037 147 $359.90 $283.25 $643.15 $61,857.40
May, 2037 148 $358.26 $284.89 $643.15 $61,572.51
Jun, 2037 149 $356.61 $286.54 $643.15 $61,285.97
Jul, 2037 150 $354.95 $288.20 $643.15 $60,997.77
Aug, 2037 151 $353.28 $289.87 $643.15 $60,707.90
Sep, 2037 152 $351.60 $291.55 $643.15 $60,416.35
Oct, 2037 153 $349.91 $293.24 $643.15 $60,123.12
Nov, 2037 154 $348.21 $294.94 $643.15 $59,828.18
Dec, 2037 155 $346.50 $296.64 $643.15 $59,531.54
Jan, 2038 156 $344.79 $298.36 $643.15 $59,233.18
Feb, 2038 157 $343.06 $300.09 $643.15 $58,933.09
Mar, 2038 158 $341.32 $301.83 $643.15 $58,631.26
Apr, 2038 159 $339.57 $303.58 $643.15 $58,327.68
May, 2038 160 $337.81 $305.33 $643.15 $58,022.35
Jun, 2038 161 $336.05 $307.10 $643.15 $57,715.25
Jul, 2038 162 $334.27 $308.88 $643.15 $57,406.37
Aug, 2038 163 $332.48 $310.67 $643.15 $57,095.70
Sep, 2038 164 $330.68 $312.47 $643.15 $56,783.23
Oct, 2038 165 $328.87 $314.28 $643.15 $56,468.95
Nov, 2038 166 $327.05 $316.10 $643.15 $56,152.85
Dec, 2038 167 $325.22 $317.93 $643.15 $55,834.92
Jan, 2039 168 $323.38 $319.77 $643.15 $55,515.15
Feb, 2039 169 $321.53 $321.62 $643.15 $55,193.53
Mar, 2039 170 $319.66 $323.49 $643.15 $54,870.04
Apr, 2039 171 $317.79 $325.36 $643.15 $54,544.68
May, 2039 172 $315.90 $327.24 $643.15 $54,217.44
Jun, 2039 173 $314.01 $329.14 $643.15 $53,888.30
Jul, 2039 174 $312.10 $331.05 $643.15 $53,557.25
Aug, 2039 175 $310.19 $332.96 $643.15 $53,224.29
Sep, 2039 176 $308.26 $334.89 $643.15 $52,889.40
Oct, 2039 177 $306.32 $336.83 $643.15 $52,552.57
Nov, 2039 178 $304.37 $338.78 $643.15 $52,213.79
Dec, 2039 179 $302.40 $340.74 $643.15 $51,873.05
Jan, 2040 180 $300.43 $342.72 $643.15 $51,530.33
Feb, 2040 181 $298.45 $344.70 $643.15 $51,185.63
Mar, 2040 182 $296.45 $346.70 $643.15 $50,838.93
Apr, 2040 183 $294.44 $348.71 $643.15 $50,490.22
May, 2040 184 $292.42 $350.73 $643.15 $50,139.50
Jun, 2040 185 $290.39 $352.76 $643.15 $49,786.74
Jul, 2040 186 $288.35 $354.80 $643.15 $49,431.94
Aug, 2040 187 $286.29 $356.85 $643.15 $49,075.08
Sep, 2040 188 $284.23 $358.92 $643.15 $48,716.16
Oct, 2040 189 $282.15 $361.00 $643.15 $48,355.16
Nov, 2040 190 $280.06 $363.09 $643.15 $47,992.07
Dec, 2040 191 $277.95 $365.19 $643.15 $47,626.88
Jan, 2041 192 $275.84 $367.31 $643.15 $47,259.57
Feb, 2041 193 $273.71 $369.44 $643.15 $46,890.13
Mar, 2041 194 $271.57 $371.58 $643.15 $46,518.55
Apr, 2041 195 $269.42 $373.73 $643.15 $46,144.83
May, 2041 196 $267.26 $375.89 $643.15 $45,768.93
Jun, 2041 197 $265.08 $378.07 $643.15 $45,390.86
Jul, 2041 198 $262.89 $380.26 $643.15 $45,010.60
Aug, 2041 199 $260.69 $382.46 $643.15 $44,628.14
Sep, 2041 200 $258.47 $384.68 $643.15 $44,243.47
Oct, 2041 201 $256.24 $386.90 $643.15 $43,856.56
Nov, 2041 202 $254.00 $389.15 $643.15 $43,467.41
Dec, 2041 203 $251.75 $391.40 $643.15 $43,076.02
Jan, 2042 204 $249.48 $393.67 $643.15 $42,682.35
Feb, 2042 205 $247.20 $395.95 $643.15 $42,286.40
Mar, 2042 206 $244.91 $398.24 $643.15 $41,888.16
Apr, 2042 207 $242.60 $400.55 $643.15 $41,487.62
May, 2042 208 $240.28 $402.87 $643.15 $41,084.75
Jun, 2042 209 $237.95 $405.20 $643.15 $40,679.55
Jul, 2042 210 $235.60 $407.55 $643.15 $40,272.01
Aug, 2042 211 $233.24 $409.91 $643.15 $39,862.10
Sep, 2042 212 $230.87 $412.28 $643.15 $39,449.82
Oct, 2042 213 $228.48 $414.67 $643.15 $39,035.15
Nov, 2042 214 $226.08 $417.07 $643.15 $38,618.08
Dec, 2042 215 $223.66 $419.49 $643.15 $38,198.60
Jan, 2043 216 $221.23 $421.91 $643.15 $37,776.68
Feb, 2043 217 $218.79 $424.36 $643.15 $37,352.32
Mar, 2043 218 $216.33 $426.82 $643.15 $36,925.51
Apr, 2043 219 $213.86 $429.29 $643.15 $36,496.22
May, 2043 220 $211.37 $431.77 $643.15 $36,064.45
Jun, 2043 221 $208.87 $434.28 $643.15 $35,630.17
Jul, 2043 222 $206.36 $436.79 $643.15 $35,193.38
Aug, 2043 223 $203.83 $439.32 $643.15 $34,754.06
Sep, 2043 224 $201.28 $441.86 $643.15 $34,312.20
Oct, 2043 225 $198.72 $444.42 $643.15 $33,867.77
Nov, 2043 226 $196.15 $447.00 $643.15 $33,420.77
Dec, 2043 227 $193.56 $449.59 $643.15 $32,971.19
Jan, 2044 228 $190.96 $452.19 $643.15 $32,519.00
Feb, 2044 229 $188.34 $454.81 $643.15 $32,064.19
Mar, 2044 230 $185.71 $457.44 $643.15 $31,606.75
Apr, 2044 231 $183.06 $460.09 $643.15 $31,146.65
May, 2044 232 $180.39 $462.76 $643.15 $30,683.90
Jun, 2044 233 $177.71 $465.44 $643.15 $30,218.46
Jul, 2044 234 $175.02 $468.13 $643.15 $29,750.33
Aug, 2044 235 $172.30 $470.84 $643.15 $29,279.48
Sep, 2044 236 $169.58 $473.57 $643.15 $28,805.91
Oct, 2044 237 $166.83 $476.31 $643.15 $28,329.60
Nov, 2044 238 $164.08 $479.07 $643.15 $27,850.52
Dec, 2044 239 $161.30 $481.85 $643.15 $27,368.68
Jan, 2045 240 $158.51 $484.64 $643.15 $26,884.04
Feb, 2045 241 $155.70 $487.44 $643.15 $26,396.59
Mar, 2045 242 $152.88 $490.27 $643.15 $25,906.32
Apr, 2045 243 $150.04 $493.11 $643.15 $25,413.22
May, 2045 244 $147.18 $495.96 $643.15 $24,917.25
Jun, 2045 245 $144.31 $498.84 $643.15 $24,418.42
Jul, 2045 246 $141.42 $501.72 $643.15 $23,916.69
Aug, 2045 247 $138.52 $504.63 $643.15 $23,412.06
Sep, 2045 248 $135.59 $507.55 $643.15 $22,904.51
Oct, 2045 249 $132.66 $510.49 $643.15 $22,394.02
Nov, 2045 250 $129.70 $513.45 $643.15 $21,880.57
Dec, 2045 251 $126.72 $516.42 $643.15 $21,364.14
Jan, 2046 252 $123.73 $519.41 $643.15 $20,844.73
Feb, 2046 253 $120.73 $522.42 $643.15 $20,322.31
Mar, 2046 254 $117.70 $525.45 $643.15 $19,796.86
Apr, 2046 255 $114.66 $528.49 $643.15 $19,268.37
May, 2046 256 $111.60 $531.55 $643.15 $18,736.81
Jun, 2046 257 $108.52 $534.63 $643.15 $18,202.18
Jul, 2046 258 $105.42 $537.73 $643.15 $17,664.46
Aug, 2046 259 $102.31 $540.84 $643.15 $17,123.61
Sep, 2046 260 $99.17 $543.97 $643.15 $16,579.64
Oct, 2046 261 $96.02 $547.12 $643.15 $16,032.52
Nov, 2046 262 $92.85 $550.29 $643.15 $15,482.22
Dec, 2046 263 $89.67 $553.48 $643.15 $14,928.74
Jan, 2047 264 $86.46 $556.69 $643.15 $14,372.06
Feb, 2047 265 $83.24 $559.91 $643.15 $13,812.15
Mar, 2047 266 $80.00 $563.15 $643.15 $13,248.99
Apr, 2047 267 $76.73 $566.41 $643.15 $12,682.58
May, 2047 268 $73.45 $569.70 $643.15 $12,112.88
Jun, 2047 269 $70.15 $572.99 $643.15 $11,539.89
Jul, 2047 270 $66.84 $576.31 $643.15 $10,963.58
Aug, 2047 271 $63.50 $579.65 $643.15 $10,383.92
Sep, 2047 272 $60.14 $583.01 $643.15 $9,800.92
Oct, 2047 273 $56.76 $586.38 $643.15 $9,214.53
Nov, 2047 274 $53.37 $589.78 $643.15 $8,624.75
Dec, 2047 275 $49.95 $593.20 $643.15 $8,031.55
Jan, 2048 276 $46.52 $596.63 $643.15 $7,434.92
Feb, 2048 277 $43.06 $600.09 $643.15 $6,834.83
Mar, 2048 278 $39.59 $603.56 $643.15 $6,231.27
Apr, 2048 279 $36.09 $607.06 $643.15 $5,624.21
May, 2048 280 $32.57 $610.57 $643.15 $5,013.64
Jun, 2048 281 $29.04 $614.11 $643.15 $4,399.53
Jul, 2048 282 $25.48 $617.67 $643.15 $3,781.86
Aug, 2048 283 $21.90 $621.25 $643.15 $3,160.61
Sep, 2048 284 $18.31 $624.84 $643.15 $2,535.77
Oct, 2048 285 $14.69 $628.46 $643.15 $1,907.31
Nov, 2048 286 $11.05 $632.10 $643.15 $1,275.21
Dec, 2048 287 $7.39 $635.76 $643.15 $639.44
Jan, 2049 288 $3.70 $639.44 $643.15 $0.00

What is a mortgage recast?

A mortgage recast is when a lender allows a borrower to reduce his monthly payment by making a lump sum recast payment towards the principal of the mortgage. Borrowers who do a mortgage recast will save interest payments and the overall costs for the mortgage because of lower interest payments each month. There will be no change in the interest rate or the terms for mortgage recasting. There is a recast fee that lenders charge should the borrower choose to recast his mortgage. The recast fee is usually around a few hundred dollars, but you will need to check with your bank or lender for the exact amount. A mortgage recast may save you interest payment in the long term depending on how much recast payment you want to make and the recast fees associated with it.


Extra mortgage payments

There are many other options you may have to save interest payment on a mortgage other than a mortgage recast. One method is by making extra payments to reduce your principal. You can make a one-time lump sum payment or increase your monthly payment to reduce principal. Making a lump-sum payment is essentially the same as a recast, but you avoid the recast fee that the bank charges. However, some lenders don't allow borrowers to make extra payments or to pay off their mortgages early, or they may charge a penalty for doing that. You will need to check with your bank and read the fine print of your mortgage to make sure there are no fees or penalties. Our mortgage recast calculator or the extra payment mortgage calculator to see which one saves you the most money in interest, and which option makes the most sense for your current situation.



Biweekly mortgage payments

Another option you may have is to increase the frequency of your mortgage payments. Instead of the regular monthly payments, you can choose to make bi-weekly payments. With biweekly mortgage payments, a borrower pays half of their monthly payments every 2 weeks. This is equivalent to 13 months worth of payments each year which is one more payment than the default monthly payment where a borrower makes 12 payments per year. One extra payment per year might not seem like a lot, but it actually saves you a lot on interest payments and may even cut a few years from the life of the mortgage term.


Recast vs Refinance

One other option that borrowers should consider is refinancing. If the interest rate is declining since you got your first mortgage, then refinance may be a good option. Recast allows a borrower to make a lump sum payment to reduce their mortgage balance, but keep the same interest rate and term, whereas refinance allows a borrower to get a lower interest rate. On the other hand, if you already have a low-interest rate, or if the interest rate has gone up since you bought your home, then refinance makes no sense because you won't be able to lower your monthly payments and there will be no savings on interest payments. On top of that, refinance takes longer to get approved since it is essentially the same as applying for a new loan, and the refinance costs are higher than a recast. Following is a list of the benefits of recast and refinance to help you decide which is the better option for you.


Benefits of refinancing


  • Lower monthly payments - If the interest rate has gone down dramatically since you bought your home, refinance is a good option to get a lower interest rate and hence a reduced monthly payment.

  • Improved credit score - If your credit score has improved and you believe that you are now qualified for a much lower interest rate, refinancing could be a good option.

  • Changning terms - If you want to lower your 30-year term to a 15-year term, or switch from an adjustable-rate mortgage to a fixed interest rate, refinancing is a good way to do that.

To learn more about refinance and how much you can save, check out how much can I save by refinancing calculator. Benefits of Recast

  • Lower costs - Recasting a mortgage has a much lower fee than refinancing.

  • Shorter approval process - You may or may not qualify to refinance your mortgage, but you are most likely to get approved for a recast. Since recast is more like you ask your lender to recalculate your amortization schedule for your monthly payments, it doesn't require you to provide income proof or credit score checks like refinance does, the approval process is much shorter.


Is recasting worth it?

If you received a big amount of money, either from an inheritance, a bonus from your job, or proceeds from selling another house, and your lender does not allow you to pay off your mortgage without penalty, then recasting might be the best option for you. Otherwise, you may consider making extra payments or increasing the payment frequency since recasting does not lower your interest rate and the mortgage term. Use our mortgage recast calculator with amortization schedule to see exactly how much you will save with mortgage recasting against your original mortgage. You will also see the recast amortization schedule that shows you the new lower monthly payments.

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