{
  "slug": "mortgage-recast-vs-refinance",
  "title": "Mortgage Recast vs. Refinance Calculator",
  "heading": "Recast vs. Refinance Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/mortgage-recast-vs-refinance",
  "summary": "Compare a lump-sum recast against refinancing when you have extra cash toward your mortgage.",
  "description": "A recast keeps your existing rate and term but re-amortizes the payment after you make a large lump-sum principal payment, usually for a $150–$500 flat fee and no credit check or appraisal — it lowers your payment without touching your rate. A refinance replaces the loan entirely, which can lower your rate but comes with full closing costs (2–5% of the loan) and resets underwriting. This calculator compares the new monthly payment and total costs of each option given the same lump sum available, so you can see whether it's worth paying refinance closing costs to chase a lower rate versus simply recasting at your current rate for a fraction of the cost.",
  "formula": "Recast payment = remaining balance after lump sum, re-amortized at the current rate over the remaining term. Refinance payment = new balance (after applying lump sum first) amortized at the new rate over the new term, plus closing costs added to breakeven analysis.",
  "dateModified": "2026-09-30",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=mortgage-recast-vs-refinance",
  "inputs": [
    {
      "id": "balance",
      "label": "Current mortgage balance",
      "kind": "number",
      "hint": null,
      "default": 320000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "currentRate",
      "label": "Current interest rate",
      "kind": "number",
      "hint": null,
      "default": 5.5,
      "unit": "%",
      "min": 0,
      "max": 12
    },
    {
      "id": "remainingYears",
      "label": "Remaining term",
      "kind": "number",
      "hint": null,
      "default": 24,
      "unit": "years",
      "min": 1,
      "max": 30
    },
    {
      "id": "lumpSum",
      "label": "Lump sum available",
      "kind": "number",
      "hint": null,
      "default": 40000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "recastFee",
      "label": "Recast fee",
      "kind": "number",
      "hint": null,
      "default": 300,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "refiRate",
      "label": "Available refinance rate",
      "kind": "number",
      "hint": null,
      "default": 5.25,
      "unit": "%",
      "min": 0,
      "max": 12
    },
    {
      "id": "refiCosts",
      "label": "Refinance closing costs",
      "kind": "number",
      "hint": null,
      "default": 6000,
      "unit": "$",
      "min": 0,
      "max": null
    }
  ],
  "outputs": [
    {
      "id": "betterOption",
      "label": "Better option (lower payment for less upfront cost)",
      "format": "raw",
      "hint": null,
      "primary": true
    },
    {
      "id": "recastPayment",
      "label": "New payment after recast",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "refiPayment",
      "label": "New payment after refinance",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "recastMonthlySavings",
      "label": "Monthly savings from recast",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "refiMonthlySavings",
      "label": "Monthly savings from refinance",
      "format": "currency",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Current mortgage balance: 320000 $",
      "Current interest rate: 5.5 %",
      "Remaining term: 24 years",
      "Lump sum available: 40000 $",
      "Recast fee: 300 $",
      "Available refinance rate: 5.25 %",
      "Refinance closing costs: 6000 $"
    ],
    "outputs": [
      "Better option (lower payment for less upfront cost): Refinance",
      "New payment after recast: $1,753",
      "New payment after refinance: $1,749",
      "Monthly savings from recast: $250",
      "Monthly savings from refinance: $255"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter current mortgage balance ($).",
      "Enter current interest rate (%).",
      "Enter remaining term (years).",
      "Enter lump sum available ($).",
      "Enter recast fee ($).",
      "Enter available refinance rate (%).",
      "Enter refinance closing costs ($).",
      "Read your better option (lower payment for less upfront cost) on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "balance": 192000,
        "currentRate": 3.3,
        "remainingYears": 14,
        "lumpSum": 24000,
        "recastFee": 175,
        "refiRate": 3.15,
        "refiCosts": 3500
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "balance": 320000,
        "currentRate": 5.5,
        "remainingYears": 24,
        "lumpSum": 40000,
        "recastFee": 300,
        "refiRate": 5.25,
        "refiCosts": 6000
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "balance": 512000,
        "currentRate": 8.8,
        "remainingYears": 30,
        "lumpSum": 64000,
        "recastFee": 475,
        "refiRate": 8.4,
        "refiCosts": 9500
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "What can't a recast do that a refinance can?",
      "a": "A recast never changes your interest rate or loan term — it only lowers the payment by re-amortizing the same rate over the same remaining schedule after a lump-sum paydown. If your goal is to actually get a lower rate, shorten your term, switch loan type, or pull cash out, only a refinance accomplishes that."
    },
    {
      "q": "Do all lenders and loan types allow recasting?",
      "a": "No. Conventional loans held by many servicers allow recasting, but FHA, VA, and USDA loans typically do not. Always confirm with your specific servicer, since recast policies (minimum lump sum required, fee, processing time) vary by lender even among those that allow it."
    },
    {
      "q": "Does a recast affect my credit score or require an appraisal?",
      "a": "No — recasting requires no credit pull, no appraisal, and no new underwriting since it's the same loan. That's the core appeal: a low-cost, low-friction way to lower your payment if you come into extra cash, versus refinancing's full loan-origination process."
    },
    {
      "q": "When does refinancing clearly win despite the higher cost?",
      "a": "When the new rate is meaningfully lower (generally 0.75%+ below your current rate) or you want to change loan terms — shorten from 30 to 15 years, drop PMI, or switch from ARM to fixed. The rate difference has to be large enough to outrun the thousands in closing costs within a reasonable time horizon."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/cash-out-refi-breakeven",
    "https://www.revenuelab.fyi/toolbox/mortgage-points-breakeven",
    "https://www.revenuelab.fyi/toolbox/heloc-draw-cost"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — Mortgage Recast vs. Refinance Calculator (https://www.revenuelab.fyi/toolbox/mortgage-recast-vs-refinance)"
}