AbraCalc

Mortgage Recast: $400K Balance, 7%, $100K Lump Sum

Calculate your new monthly payment after recasting a $400,000 mortgage at 7% with a $100,000 lump-sum payment over 25 remaining years.

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How to use this tool

  1. Enter your current balance, rate, and the years remaining.
  2. Enter the lump sum you will apply to principal.
  3. Read your new monthly payment, monthly savings, and total interest saved.
  4. Compare against refinancing if rates have changed.

Find your reduced monthly payment after a $100,000 lump-sum mortgage recast on a $400,000 balance at 7%.

Frequently asked questions

How is a recast different from refinancing?
A recast keeps your existing loan, rate, and payoff date and only lowers the payment after a lump-sum paydown. A refinance replaces the loan entirely with a new rate, term, and closing costs.
Does a recast lower my interest rate?
No. The rate stays the same. Your payment drops because the lump sum reduces the principal that the payment is calculated on, and you also pay less total interest.
Is recasting worth it?
It often is when you have a lump sum, a good existing rate you do not want to lose, and a lender that allows recasts for a small flat fee — much cheaper than refinancing's closing costs.