Mortgage Recast vs Refinance 2027 Calculator
Recasting re-amortizes your existing mortgage after a lump-sum principal payment — keeps your rate, lower payment, no closing costs. Refi gets new rate but $3K-$8K in costs. Compare both.
| Original payment | — |
| Recast balance after lump | — |
| Recast new payment | — |
| Refi balance (with closing costs) | — |
| Refi new payment | — |
| Recast total savings (over term) | — |
| Refi total savings (over term) | — |
| Winner | — |
Mortgage recast is a quieter option than refinance: pay a lump sum to principal, ask lender to re-amortize your existing loan over the remaining term. Same rate, lower payment, no closing costs. Refinance: closing costs $3K-$8K, but unlocks lower rate. Both have a place — recast wins when you locked a great rate, refi wins when rates have dropped 1%+.
How Recast Works
You make a lump-sum principal payment (typically $10K+ minimum, lender-dependent). Lender re-amortizes the loan over the remaining term, lowering monthly payment. Same interest rate, same term length, much smaller principal. Fee: $200-500. Takes 30-60 days to process.
How Refi Beats Recast
If current rates are 1%+ below your loan rate, refi captures that delta on the full balance. Even with $5K closing costs, breakeven is often 2-3 years. Recast can't lower rate — that's only possible with a new loan.
When Recast Wins
You have a low rate (e.g., 3% pre-2022) and want to deploy a windfall (inheritance, bonus, sale proceeds). Refinancing into current 6-7% rates loses the existing low rate. Recast preserves it — best of both worlds.
Lender Restrictions
Not all lenders offer recast: FHA/VA usually NO. Conventional/conforming USUALLY YES. Jumbo: depends. Loan must be current (no missed payments). Some lenders require 6+ months seasoning. Always ask lender directly.
Last updated May 2026. Sources: CFPB Mortgage Resources, Freddie Mac Servicing Guide.