When planning a buy-before-sell move
Show clients the full sequence: a larger loan on the new home, then a recast once the old home sells. Seeing the payment drop at the end often makes buying first feel manageable.
Move-up tools · Recast
A mortgage recast calculator for after the old home sells
Some move-up buyers take a larger loan on the new home, then put the proceeds from selling the old one toward principal. A recast re-amortizes the loan at the same rate and term, lowering the payment. This mortgage recast calculator shows the new payment, the monthly saving and the interest saved, which helps clients see a buy-first plan through to the end.
- Included on: every plan
- Runs in English and Spanish
- Leads arrive with all 6 results attached
What is a mortgage recast?
A recast happens when a borrower pays a lump sum toward principal and the lender recalculates the payment over the remaining term at the same rate. Unlike a refinance, the rate and term don't change and there's no new loan. Not every lender or loan type offers recasting, and there's usually a fee.
When you'd send it
When to put the Mortgage Recast Calculator in front of people
After a client's old home closes
Send the recast calculator with their net proceeds from the settlement statement. It's a helpful post-closing touch, and it keeps you in their financial conversations.
For buyers expecting a windfall
Buyers expecting a bonus, inheritance or proceeds from another sale may prefer a recast to a smaller loan today. The calculator shows what the lump sum would do.
What your visitor sees
The homeowner enters the current loan balance, rate, years remaining and lump sum payment. They see the new monthly payment, current payment, monthly saving, lump sum applied, new balance and interest saved.
The lead you receiveA move-up client finishing a buy-first plan
You receive the Current Loan Balance, Lump Sum Payment, New Monthly Payment, Current Payment, Monthly Saving and Interest Saved. These leads are usually your own clients or their referrals, close to a transaction, so they're valuable for repeat business.
Follow-up that works
- If they haven't listed the old home, offer a net sheet and a pricing plan.
- Remind them to ask their lender whether the loan allows a recast and what the fee is.
- Check in after their sale closes to help with next steps.
- What your visitor enters
- Current Loan Balance
- their input
- Interest Rate (%)
- their input
- Years Remaining
- their input
- Lump Sum Payment
- their input
- What they see (and what you receive)
- New Monthly Payment
- their result
- Current Payment
- their result
- Monthly Saving
- their result
- Lump Sum Applied
- their result
- New Balance
- their result
- Contact and source
- Name, email, phone
- with consent
- Page and campaign
- UTM · referrer
If we put about $150,000 from your sale toward the new loan, a recast would bring the payment down by roughly $1,000 a month. Worth asking your lender now whether your loan allows it.
Before and after
Your page before and after this calculator
BeforeAfter
Before: Can we afford two payments?
- Clients fear carrying a large new payment
- The plan stops at closing the new home
- Buy-first feels too risky
After: Payment after the recast
- The payment after the old home sells, in dollars
- The full buy-first plan, start to finish
- Clients can decide with the whole picture
Reading the results
What each result means for your follow-up
The same figures your visitor sees arrive in your lead record. Here's how to read the ones that matter.
- New Monthly Payment
- Principal and interest after the lump sum, over the remaining term at the same rate. Taxes and insurance don't change.
- Monthly Saving
- The drop in principal and interest after the recast. It's the number that makes a buy-first plan feel workable.
- Interest Saved
- Interest avoided over the rest of the loan because of the lump sum. It reflects the principal reduction more than the recast itself.
What can go wrong
Mistakes that cost agents the lead
Assuming every loan can be recast
Many conventional loans allow recasting, but government-backed loans often don't, and lenders set minimum lump sums and fees. Clients must confirm with their servicer.
Forgetting the sale might take longer
A recast plan depends on the old home selling. Discuss pricing and a realistic timeline so the client can carry the larger payment in the meantime.
Confusing a recast with a refinance
A recast keeps the rate. If rates have fallen, a refinance might do more, and if they've risen, a recast keeps a lower existing rate. The lender can compare.
Inside the Mortgage Recast Calculator
What your visitor enters (4)
Current Loan Details
- Current Loan Balance
- Interest Rate (%)
- Years Remaining
Recast Options
- Lump Sum Payment
Field names are shown as they appear in the calculator's English interface.
What they see (and what you receive) (6)
- New Monthly Payment
- Current Payment
- Monthly Saving
- Lump Sum Applied
- New Balance
- Interest Saved
Definitions shown in the calculator (8)
- Mortgage recast
- A lender recalculation of your monthly payment after you pay a lump sum toward principal. The interest rate and payoff date stay the same; only the payment drops, because a smaller balance is spread over the remaining term. Not every loan allows it, and lenders often set a minimum lump sum and charge a fee.
- Lump sum payment
- A single extra payment applied directly to principal before the payment is recalculated. In this calculator it is subtracted from the current balance to find the new balance. The larger the lump sum relative to the balance, the larger the drop in payment and in future interest.
- Principal balance
- The amount you still owe on the mortgage, excluding future interest. It appears on your monthly statement and is lower than the original loan amount because each payment has repaid some principal. Interest each month is charged on this balance, so reducing it reduces every future interest charge.
- Amortization
- The schedule by which equal payments pay off a loan over a set term, with early payments weighted toward interest. A recast re-amortizes the loan: it builds a new schedule from the reduced balance over the years remaining, which produces the lower payment this calculator shows.
- Recast fee
- An administrative charge some servicers apply to process a recast. It is usually modest compared with refinancing costs, but it varies by servicer and is not included in this calculator’s results. Subtract it from the interest saved to see the net benefit, and confirm the fee and minimum lump sum with your servicer.
- Refinance
- Replacing your mortgage with a new loan, often to change the rate or term or to take cash out. Unlike a recast, it requires a new application, underwriting and closing costs, and it can lower your interest rate. A recast keeps your existing rate, so it suits borrowers who already have a rate they want to keep.
- Interest saved
- The reduction in total interest over the remaining term that results from paying down principal with the lump sum. The saving comes from the principal reduction itself, not from the recast; applying the same lump sum without recasting saves at least as much interest but keeps the old payment and shortens the payoff instead.
- Remaining term
- The number of years left until the mortgage is scheduled to be paid off. A recast keeps this unchanged and spreads the new, smaller balance across it. The longer the remaining term, the smaller the payment drop per dollar of lump sum, because the reduction is spread over more payments.
Calculator disclaimer
Estimates only. Not all loans allow recasting, and lenders may charge a fee and set a minimum lump sum. Confirm your loan's recast policy with your servicer.
Calculator results are estimates for illustration, not Loan Estimates, pre-approvals or offers of credit.
Terms on this page
Questions by topic
Mortgage Recast Calculator: questions agents ask
How is the new payment calculated?
The balance minus the lump sum is re-amortized over the years remaining at the same rate. The difference between the old and new payment is the monthly saving.
Does a recast change the interest rate?
No. The rate and term stay the same. Only the principal and the payment change. That's what distinguishes it from a refinance.
Is the interest saved from the recast or the lump sum?
Mostly from the lump sum, which reduces the principal that accrues interest. The recast lowers the required payment to match. Prepaying without a recast also saves interest, but the payment stays the same.
Which clients benefit from a recast plan?
Move-up buyers who need to buy before selling and will have significant proceeds, and buyers expecting a large lump sum. The calculator shows whether the payment drop is meaningful for them.
What do I tell clients about recast fees?
That lenders typically charge a modest administrative fee and set a minimum lump sum, and that they should confirm both with their servicer. It's usually far cheaper than refinancing, but they need to check.
Should I recommend recasting over refinancing?
No. Show the recast math, and let the client compare options with their lender. Market rates and loan type decide which makes sense.
Which plan includes it?
Every plan. Mortgage recast is one of the mortgage tools on the free Agent plan and above.
How should I combine it with other tools?
For move-up sellers, a widget with the seller net sheet, HELOC and recast calculators covers the whole plan: what they'll net, how to bridge and the payment at the end.
Does it run in Spanish?
Yes. It runs in English and Spanish.
Pairs well with
Calculators that pair well with this one
Put the Mortgage Recast Calculator on your next listing
Included on every plan, including the free Agent plan. No card needed.