Mortgage Recast vs Extra Payments

Extra payments reduce principal as you go, shortening term and interest. A recast uses a lump-sum and re-amortizes to lower monthly payments right away.

When cash flow relief is the priority and your current rate is fair. Recasting lowers the payment; extra payments keep the payment but shorten the loan.

Most lenders charge a modest fee to recast; this tool includes it so you can compare net impact vs simply paying extra each month.

Try Recast vs Refi, Refinance Break-Even, and PMI Drop for more scenarios.