Mortgage Recast Calculator

What is a Mortgage Recast Calculator?

A Mortgage Recast Calculator is a simple tool that helps homeowners figure out how much their monthly mortgage payment could decrease if they make an extra lump sum payment on their loan. This process is called “mortgage recasting.” When you recast your mortgage, you’re paying down a large portion of the principal, which in turn lowers the amount you owe. As a result, your monthly payments become smaller, but your loan term remains the same.

How to Use the Mortgage Recast Calculator:

1. Original Loan Amount: Enter the amount of money you originally borrowed when you took out your mortgage.
2. Annual Interest Rate: Provide the interest rate on your mortgage as a percentage. This is usually a number like 3.5% or 4%.
3. Loan Term: This is the total length of time you have to pay off your mortgage, usually given in years (e.g., 30 years or 15 years).
4. Number of Payments Made: Enter the number of monthly payments you’ve already made. This tells the calculator how much time is left on your mortgage.
5. Additional Lump Sum Payment: Input the extra amount of money you plan to pay toward your mortgage principal.

What Will the Calculator Tell You?

After you fill in the details and click “Calculate,” the Mortgage Recast Calculator will tell you what your new monthly payment will be after you make the lump sum payment. This can be a great way to see how much money you could save each month by paying down your mortgage sooner.

Why is Mortgage Recasting Beneficial?

Mortgage recasting can be a good financial move if you have extra money to put toward your mortgage but don’t want to go through the hassle or costs associated with refinancing. It’s a way to lower your monthly payments while keeping the same interest rate and loan term.

This calculator makes it easy to see the potential savings and helps you decide if a mortgage recast is right for you!