Mortgage Recast vs Refinance Calculator
Compare two ways to lower a mortgage payment: a recast with a lump sum, or a refinance.
–
Lowest payment
- Current payment
- Recast
- Refinance
- Remaining interest
- Note
- Work
Saved Calculations
Items you add are saved in this browser.
| Name | Calculation | Result | Remove |
|---|
Recast vs Refinance
A recast (re-amortization) keeps your rate and payoff date: you pay a lump sum, and the lender recalculates the payment on the lower balance, usually for a small fee. A refinance replaces the loan with a new one at a new rate and term, with full closing costs.
Recast payment = PMT(current rate, months left, balance − lump sum)
Worked Example
Tips
Not all loans can be recast (FHA, VA and USDA loans usually can’t). A recast makes sense when rates are higher now than your current rate; a refinance when rates have dropped enough to cover the closing costs.