Mortgage Recast vs Refinance Calculator
Mortgage recast applies a lump sum to principal then re-amortizes — lowering monthly payment without changing rate or term. Costs $250-$500 vs $5K-$15K refi closing costs. This tool compares both paths after a $50K-$200K windfall.
How Mortgage Recast Works
Apply lump sum (usually $5K+ minimum) to principal. Lender re-amortizes the remaining balance over remaining term at same rate. Monthly payment drops proportionally. Cost: typically $250-$500 admin fee. Available on conforming mortgages; not available on most FHA/VA loans.
Recast vs Refinance Decision
Recast wins when: (1) Rate hasn't dropped 75bps+ since origination. (2) Have lump sum windfall (bonus, inheritance, sale proceeds). (3) Want lower payment without re-underwriting (no credit check, appraisal, or income docs). (4) Want to keep current term. Refinance wins when: (1) Rate has dropped 75bps+. (2) Want term change (15yr → 30yr or vice versa). (3) Cash-out needed.
When Recast Isn't Available
FHA, VA, USDA loans typically don't allow recast. HELOC + first-mortgage combos can complicate. Always confirm with servicer before assuming recast is available. Some servicers (Chase, Wells Fargo) recast freely; others (smaller servicers) may decline.
Source: CFPB Mortgage Servicing Rules, Fannie Mae Servicing Guide D2-2-08. Last updated: May 2026.