Use this mortgage recast calculator to determine your reduced monthly payments and potential savings after making a lump sum payment on your mortgage.
Mortgage Recast Calculator
How to Use the Mortgage Recast Calculator
To use the mortgage recast calculator, you must fill in the required fields:
- Original Balance: The current balance of your mortgage.
- Interest Rate (%): Your annual interest rate.
- Remaining Term (months): The number of months left on your mortgage.
- Additional Payment: The extra payment you are making to reduce your balance.
After inputting the necessary information, click the “Calculate” button. The result will display your new monthly payment following the recasting of your mortgage.
How It Calculates
The calculator takes your current balance and subtracts the additional payment to calculate a new balance. It then calculates the new payment based on the new balance, using the same interest rate and remaining term as before, since a recast generally keeps the original rate and term of the mortgage.
Limitations
This calculator does not take into account:
- Any fees or costs associated with recasting your mortgage.
- Potential changes to the length of your mortgage term due to the recast.
- Taxes, insurances, or other components of your actual monthly mortgage payment.
It assumes a fixed interest rate and does not account for adjustable-rate mortgages (ARMs). For precise figures and advice, always consult with your mortgage lender or financial advisor.