Mortgage Recast Calculator

User Manual for the Mortgage Recast Calculator

Welcome to the Mortgage Recast Calculator! This tool helps you calculate the new monthly mortgage payment and remaining loan term after making a lump-sum recast payment. Below is a step-by-step guide on how to use the calculator effectively, along with examples to help you understand each feature.

Getting Started

The Mortgage Recast Calculator is designed to be user-friendly and intuitive. You will find various input fields, options to toggle additional inputs, buttons for calculating and clearing data, and a pie chart for visual representation. Here’s how you can use each feature:

1. Input Fields and Options

• Current Mortgage Balance ($): Enter the current balance of your mortgage loan. This should be the total amount you still owe.
• Current Interest Rate (%): Enter the annual interest rate of your mortgage loan as a percentage (e.g., 3.5 for 3.5%).
• Recast Payment Amount ($): Enter the lump-sum amount you plan to pay to reduce your mortgage balance.
• Do you know the remaining loan term?: Select “Yes” if you know how many years and months are left on your mortgage. Select “No” if you want to provide the loan closing date and recast payment date instead.
  • If you select “Yes”:
    • Years Remaining: Enter the number of full years remaining on your mortgage.
    • Months Remaining: Enter the additional months beyond the full years remaining on your mortgage.
  • If you select “No”:
    • Loan Closing Date: Use the date picker to select the date when your mortgage was closed (when you started the loan).
    • Recast Payment Date: Use the date picker to select the date when you plan to make the recast payment.

2. Buttons

• Calculate: Click this button after entering all required information to calculate the new monthly payment and remaining loan term. The results will be displayed on the screen, and a pie chart will show the breakdown of payments.
• Clear: Click this button to reset all fields and clear the results and the chart. This is useful if you want to start a new calculation without refreshing the page.
• Screenshot: Click this button to take a screenshot of the entire screen, including the calculator and the pie chart. This feature is helpful for saving and sharing your results.

3. Output Section

• New Monthly Payment: After clicking “Calculate,” this section displays your new monthly mortgage payment after the recast.
• Remaining Loan Term: This section shows the remaining loan term in months after the recast.

4. Pie Chart

• The pie chart provides a visual representation of your mortgage breakdown, including the new monthly payment, old payment, and recast payment. This helps you see how much you are saving by making a recast payment.

Example Usage

Let’s go through an example to see how this calculator can be used:

Scenario:

• Current Mortgage Balance: $200,000
• Current Interest Rate: 4%
• Recast Payment Amount: $20,000
• Remaining Loan Term: 15 years and 0 months

Steps:

1. Enter $200,000 into the “Current Mortgage Balance” field.
2. Enter 4 into the “Current Interest Rate” field.
3. Enter $20,000 into the “Recast Payment Amount” field.
4. Select “Yes” under “Do you know the remaining loan term?”
5. Enter 15 in the “Years Remaining” field and leave “Months Remaining” as 0.
6. Click the “Calculate” button.

Results:

• New Monthly Payment: The calculator will display the new monthly payment based on the reduced balance and remaining term.
• Remaining Loan Term: This will show the term you entered, which is 180 months in this example.
• The pie chart will show the new monthly payment, old payment, and recast payment.

Example of Using Dates:

Suppose you don’t know the exact term remaining, but you know the loan was closed 10 years ago, and you plan to recast next month:

1. Select “No” under “Do you know the remaining loan term?”
2. Use the date picker to select the Loan Closing Date as 10 years ago (e.g., January 1, 2014).
3. Set the Recast Payment Date as the next month (e.g., October 1, 2024).
4. Enter the mortgage balance, interest rate, and recast payment amount as before.
5. Click “Calculate.”

Results:

• The calculator will compute the number of months between the closing date and the recast date and use this to determine the new monthly payment.
• The pie chart and other results will update accordingly.

Tips for Best Experience

• Ensure all fields are filled correctly: The calculator relies on accurate input to provide useful results. Double-check your numbers before hitting “Calculate.”
• Use the Clear button: If you want to try different scenarios or if you made a mistake, use the Clear button to reset the calculator.
• Use the Screenshot feature: Save your results for future reference or share them with others to discuss your mortgage options.

By following these instructions and examples, you can effectively use the Mortgage Recast Calculator to plan your mortgage payments and make informed financial decisions. If you have any questions or need further assistance, feel free to reach out!