Mortgage Recast vs Refinance Calculator

How to do it

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   Step 1: Open Mortgage Recast vs Refinance Calculator and add your input

   Type your numbers or text, add your file, or pick the options you need. Nothing is uploaded: everything stays in your browser.

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   Step 2: What Mortgage Recast vs Refinance Calculator does

   Compare recasting a mortgage after a lump-sum payment with refinancing to a lower rate.

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   Step 3: Read the result and compare

   The result appears at once. Change one value to see how the answer moves, then keep the figure that fits your case.

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   Step 4: Copy or save it

   Copy the result or download it. For an important decision, confirm it with the official source or an adviser.

About this tool

Enter your balance, rate and years left, the lump sum you could pay, the recast fee, and a refinance rate, term and closing costs. The calculator shows the new payment and the total interest for each choice so you can compare.

Recast

A recast keeps your rate and term. You pay a lump sum toward the principal, the lender re-calculates the payment on the lower balance and charges a small fee, usually a few hundred dollars. Your interest rate stays the same.

Refinance

A refinance replaces the loan with a new one at a new rate and term, with closing costs. Here the lump sum is applied to the balance first and the closing costs are added to the new loan.

Comparing

Both options keep the same term in the default example, so the total interest is comparable. If the refinance term is longer than your remaining term, the interest total looks worse but the monthly payment is lower. A refinance only helps if the new rate is low enough to cover its costs.

Worked example

$320,000 left at 6.75% with 27 years to go and a $60,000 lump sum: recasting lowers the payment from $2,149.12 to $1,746.16 for a $500 fee and $306,256 of interest in total. Refinancing the $260,000 plus $6,000 of closing costs at 6.0% for 27 years gives $1,659.80 a month and $271,776 of interest, about $34,500 less.

Tips for best results

Check every box before you rely on a result, because one wrong digit changes the whole answer. Use the exact figures from your payslip, bill, certificate or contract, and keep a note of the date you calculated. Rates, thresholds and rules change from time to time, so for tax, fees and legal matters treat the output as an estimate and confirm with the official source named on this page. You can run as many scenarios as you like; nothing is saved or sent, and refreshing the page clears the boxes.