Mortgage Recast Calculator
By The Dime Daily Editorial Team · Published June 2025
See how much a lump-sum principal payment can lower your monthly mortgage payment through recasting — no refinancing required.
Skip the fluff — TL;DR
A $25,000 lump-sum payment on a $280,000 mortgage at 6.5% can cut your monthly payment by $150+ and save $40,000+ in interest — all without refinancing.
💰 Dime's Take
Recasting is one of the most underused tools in homeownership. If you have a great rate (under 5%) and a windfall sitting in savings, a recast beats refinancing on almost every metric — no credit check, no closing costs, immediate lower payment. The only catch: not all loans qualify, FHA/VA loans typically don't, and you need enough cash to meet the lender's minimum (usually $10,000+).
Frequently asked questions
Mortgage recasting (also called 're-amortization') lets you make a large lump-sum payment toward your principal, and your lender then recalculates your monthly payment based on the new lower balance — keeping the same interest rate and remaining term. It's different from refinancing: there's no credit check, no closing costs, and your rate stays the same.
Most lenders require a minimum lump-sum payment of $5,000–$10,000 to qualify for a recast. Some require $10,000 or more. The bigger the payment, the bigger the monthly savings.
Recast if: you have a great current rate (below 5%), you have a lump sum (inheritance, bonus, home sale proceeds), and you want lower monthly payments without the hassle. Refinance if: current rates are meaningfully lower than yours. Recasting costs a small admin fee ($150–$500). Refinancing costs 2–5% of your loan amount.
No — recasting is not available on all loans. FHA, VA, and USDA loans typically cannot be recast. Most conventional loans can be. Ask your lender directly.