Which mortgages qualify for recasting?

Most conventional Fannie Mae and Freddie Mac loans allow recasting. FHA, VA, and USDA government-backed loans generally do not permit recasting.

Updated: August 2026 • Verified v1.2

Mortgage Recast Savings & Payment Reduction Calculator

Finance & MathPopular

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New_PMT = [New_Balance * (r * (1+r)^n)] / [(1+r)^n - 1]; Interest_Saved = Total_Orig_Interest - Total_New_Interest

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Understanding Your Results

Calculates the new lower monthly principal and interest payment, immediate monthly cash flow savings, total lifetime interest saved, and net financial benefit after the lender's recast administrative fee.

Practical Guidance & Next Steps

Unlike refinancing, a mortgage recast does not require a home appraisal, credit check, or thousands in closing costs—most lenders charge only a nominal $250 administrative fee.

What is this?

A mortgage re-amortization utility that calculates payment reductions and interest savings from a principal recast.

How does it work?

1. Enter current loan balance, interest rate, and remaining years. 2. Enter your lump-sum payment and lender recast fee. 3. View your new lower monthly payment and lifetime interest saved.

Why use it?

Shows the exact financial return and monthly cash flow boost of recasting vs refinancing.

Technical Scope & Calculation Limitations

Models fixed-rate conventional mortgage recasting.

Frequently Asked Questions

A mortgage recast occurs when you make a large lump-sum payment toward your mortgage principal and your lender re-amortizes the remaining balance over your existing term, lowering your monthly payment without changing your interest rate.

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