Mortgage principal and payment scenario
Mortgage recast payment estimator
Estimate mortgage principal-and-interest payments after a lump-sum principal payment, with a recast fee and interest comparison over the remaining term.
Estimate what a lower principal balance could mean for the monthly principal-and-interest payment if your servicer approves a recast. Enter the current unpaid balance and the terms that remain on the loan.
Enter your balance, fixed rate, remaining term, lump-sum principal payment, and any quoted recast fee.
This is a principal-and-interest model. Your servicer decides whether it will accept a recast, how it applies your payment, the fee, and the effective date. Check your loan documents and ask the servicer for its written terms.
What the scenarios compare
The estimator calculates the current scheduled payment from the balance, fixed annual rate divided by 12, and remaining months. It subtracts the entered lump sum from principal, then compares two modeled paths: continue paying the current scheduled amount until the reduced balance is paid off, or recalculate the payment over the original remaining term. It shows the interest in each path and adds the recast fee only to the recast path's displayed cost.
The comparison assumes the lump sum is applied immediately to principal, monthly payments occur at month end, the rate stays fixed, and no other payments or charges change. Taxes, insurance, escrow, mortgage insurance, other fees, and payment timing are excluded. The result is not an approval, offer, or personalized financial advice.
Sources and limits
Fannie Mae describes a recast as recalculating the monthly payment over the remaining term after a principal curtailment, using the current unpaid balance and current interest rate; its guidance says a servicer may agree to reduce the principal-and-interest payment in the situations it covers. This does not mean every loan qualifies or every servicer offers one. Source checked November 3, 2026: Fannie Mae: processing a principal curtailment on a recast loan.
CFPB guidance says some mortgages have prepayment penalties, including in some cases when a large amount is paid at once. Review your note and ask your servicer whether a charge applies to your planned payment. Source last reviewed September 11, 2024 and checked November 3, 2026: CFPB: what is a prepayment penalty?
Related mortgage estimates
Compare a fixed extra monthly principal amount with the scheduled payment using the mortgage extra-payment calculator. For month-by-month principal and interest under a fixed-rate assumption, see the mortgage amortization schedule. Compare other home purchase inputs with the mortgage down-payment scenario tool.
How it works
Enter your current unpaid principal balance, fixed annual rate, remaining term in months, planned principal payment, and any recast fee quoted by your servicer. Select Compare payment scenarios to see the modeled payment, payoff timing, interest, and fee comparison.
Good to know
Will my mortgage servicer approve a recast?
This calculator cannot determine that. Recast availability, minimum principal payments, fees, processing, and eligibility depend on the loan and servicer. Ask your servicer for written terms.
Does a recast change my interest rate or loan term?
This estimate holds the entered rate and remaining term constant. Actual recast terms and payment timing depend on your mortgage documents and servicer.
Does this show my full housing payment?
No. It models principal and interest only. Taxes, insurance, mortgage insurance, escrow, and other charges are excluded.
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