Finance category
Mortgage, loan, investing, tax, and money calculators.
Refinance vs Recast Calculator
Decide whether to refinance your mortgage at a new rate or keep the current loan and recast it with a lump-sum principal payment. See payment, interest, and break-even for each path.
Current mortgage
Recast scenario (keep current loan)
Typical recast fees: $150–$500.
Refinance scenario (replace loan)
Current loan
$2,253
monthly payment
Total interest: $410,108
Recast
$1,972
monthly payment after lump
Save $282/mo
Total interest after recast: $358,845
Refinance
$1,970
monthly payment on new loan
Save $283/mo
Total interest: $389,306
Decision framework
Refinance break-even: 23 months to recover $6,500 in closing costs.
A recast keeps your current rate and term intact, just lowering the payment by re-amortizing the reduced balance. It makes sense when current rates are higher than yours but you have cash to deploy. A refinance is usually better when rates have dropped materially and you plan to stay long enough to clear closing costs.
How to Use
- Enter your current mortgage balance, rate, and years remaining to set the baseline payment.
- For the recast scenario, enter the lump-sum principal payment and the recast fee.
- For the refinance scenario, enter the new rate, term, and total closing costs.
- Compare new monthly payment, total interest, and the months required to recover refinance closing costs.
- Pick recast when your current rate is already competitive and you have cash; pick refinance when rates have dropped meaningfully and you'll stay long enough.
Frequently Asked Questions
What does a mortgage recast do?
A recast keeps the existing mortgage (same rate, same term) but lowers the monthly payment by re-amortizing the reduced balance after a lump-sum principal payment. Most lenders charge a small fee and require a minimum lump sum (often $5k–$10k).
When is a refinance better than a recast?
Refinance wins when market rates are meaningfully below your current rate and you'll stay in the loan long enough to recover closing costs. Recast wins when your current rate is already competitive and you just want to reduce the payment with cash.
Can I recast any mortgage?
Most conforming conventional mortgages allow recasting. Government-backed loans (FHA, VA, USDA) usually do not. Check your note or ask your servicer before planning on a recast.
Does a recast save interest?
Yes, because the balance is lower. Total interest paid over the remainder of the term drops materially, even though the rate and payoff date don't change. A refinance can save more if the rate drops are large enough.
Related Calculators
Mortgage Recast Calculator
Run the recast math standalone with full amortization detail.
Refinance Calculator
Compare a refinance against your current loan terms.
Refinance Break-Even Calculator
Calculate the months to recover refinance closing costs.
Mortgage Payoff Calculator
See how early payoff affects total interest without any refinance.
Mortgage Calculator
Base mortgage payment math behind all refinance and recast comparisons.
More Finance Calculators
Browse all finance →AI Cost Calculator
Compare token costs across OpenAI, Anthropic, and Google AI models. Calculate monthly API spending for GPT-4o, Claude, Gemini, and more.
Tip Calculator
Calculate the perfect tip and split the bill between friends. Choose preset percentages or enter a custom tip amount.
Bill Splitter Calculator
Split an uneven restaurant bill by item, divide tax and tip proportionally, and see exactly who owes whom.
Discount Calculator
Calculate sale price, discount amount, stacked discounts, sales tax, and total savings for any markdown.
Gas Mileage Calculator
Calculate MPG or km/L, estimate trip fuel cost, and compare annual fuel expenses between two vehicles.
Sales Tax Calculator
Add sales tax to a price, reverse-calculate the pre-tax amount from a total, and estimate tax for multiple items on one receipt.
Keep exploring
Next steps in Finance
Previous calculator
Refinance Closing Cost Calculator
Build up a refinance Loan Estimate line by line: lender fees, points, prepaids, escrow funding, and cash at close.
Next calculator
Rehab Budget Calculator
Build a line-item renovation budget by trade, add a contingency, and include holding costs for a flip or BRRRR project.