Mortgage Recast After Bonus Payment Calculator
After receiving a windfall, recasting your mortgage applies the lump sum to principal and recalculates your payment at the same rate and term. See exact monthly savings.
| Current balance | — |
| Current monthly P&I | — |
| New balance after lump sum + fee | — |
| Recast new monthly P&I | — |
| Monthly savings | — |
| Lifetime interest saved (incl. recast vs no-recast) | — |
| Recast fee paid | — |
Mortgage recasting applies a lump sum to your principal balance and re-amortizes the remaining loan at the same rate over the same remaining term. The result: your monthly payment drops permanently. Unlike refinancing, there are no closing costs, no credit check, and your rate stays the same. Recasting is ideal after receiving a bonus, inheritance, or sale proceeds, when you want cash flow relief rather than faster payoff.
How Recasting Works
After you make a large lump sum principal payment (typical minimum $5,000-$10,000), you request your servicer recast the loan for a one-time fee ($250-$500). The servicer recalculates your monthly payment using the new lower balance, the same interest rate, and the same remaining term. Your new payment is permanently lower from the next month onward. You keep your existing rate, your existing escrow, and your existing loan terms — only the balance and payment change. This is the cleanest way to convert a windfall into permanent monthly cash flow improvement.
Recast vs Extra-Principal vs Refinance
Recast: lower payment, same term, same rate. Best when you want cash flow flexibility. Extra-principal payment: same payment, shorter term, same rate. Saves more total interest because you finish the loan years earlier. Best for borrowers who can comfortably maintain the original payment. Refinance: new loan, potentially new rate, new term, new closing costs ($3K-$5K typical). Best when current rates are at least 0.75% below your existing rate. The three options serve different goals: recast for cash flow, extra-principal for maximum interest savings, refinance for rate improvement. After a windfall, recast is often the simplest because it requires no new underwriting and only a small fee.
Last updated May 2026. Sources: Fannie Mae Servicing.