Considering a mortgage recast? Use this reamortize mortgage calculator to see how making a lump sum payment can lower your monthly installments without the need for a full refinance.
Reamortize Mortgage Calculator
Rate & Term Remain Unchanged
Reamortize Mortgage Calculator Formula
Reamortization (or recasting) involves recalculating the monthly payment based on a reduced principal balance while maintaining the original interest rate and remaining term.
Variables
- M_new: The new, lower monthly payment.
- P: Current Principal Balance.
- Lump Sum: The large payment applied to principal.
- i: Monthly Interest Rate.
- n: Remaining Number of Payments (Months).
Related Calculators
- Refinance Calculator
- Lump Sum Payoff Calculator
- Extra Payment Calculator
- Amortization Schedule Calculator
What is Reamortize Mortgage Calculator?
A reamortize mortgage calculator helps homeowners who have come into a large sum of money (inheritance, bonus, sale of another property) and want to lower their monthly payments without refinancing.
Unlike a standard “extra payment” which shortens your loan term but keeps your monthly bill the same, reamortization (or recasting) keeps your loan term the same (e.g., you still finish paying in 2040) but lowers your required monthly payment immediately.
How to Calculate Reamortize Mortgage Calculator (Example)
Scenario: You owe $300,000 at 5% with 25 years left.
- Current Payment: ~$1,753.77 (P&I).
- Lump Sum: You pay $50,000 to recast.
- New Balance: $250,000.
- New Calculation: Amortize $250k over 25 years at 5%.
- New Payment: ~$1,461.48.
- Savings: Your monthly obligation drops by $292.29.
Frequently Asked Questions (FAQ)
No. While many major servicers (like Chase, Wells Fargo, or Rocket Mortgage) offer recasting, FHA and VA loans generally do not allow it. Always check with your servicer first.
Yes. Most lenders charge a small administrative fee to process a recast request, typically ranging from $150 to $500. This is significantly cheaper than closing costs for a full refinance.
No. A recast only affects the principal balance and monthly payment amount. Your interest rate and the remaining number of months on your loan remain exactly the same.
If your goal is cash flow flexibility, reamortization is better because it lowers your mandatory monthly bill. If your goal is to be debt-free ASAP, simply making the lump sum payment without recasting (and continuing high payments) is faster.