Recast vs Refinance vs Extra Payment Calculator

How the four strategies differ

• Do nothing keeps the current balance, rate, and remaining term.
• Lump-sum only cuts principal right away. Required monthly P&I usually stays the same, so the loan often ends sooner. See lump-sum principal payments and the extra payment calculator.
• Lump-sum + recast lowers the balance, then recalculates the payment at the same rate and remaining term. Enter a recast fee and it counts toward upfront cash. Not every loan allows a recast — read recast vs refinance.
• Refinance replaces the loan with a new rate and term; closing costs may be paid in cash or rolled into the new balance. Use the refinance calculator for a focused payment and break-even walkthrough.

Reading a typical result

In the default example — about $280,000 left at 7% with 25 years remaining and a $25,000 lump sum — the recast usually shows the lowest required monthly P&I among strategies that use the lump sum. Lump-sum-only often finishes earlier because the payment does not drop. Refinance results hinge on the new rate, term, and whether closing costs are paid in cash or financed.

Dig into any strategy’s schedule with the amortization calculator.

Assumptions and limits

• Fixed-rate amortizing loans only; no ARM, FHA MIP, or VA funding fee modeling.
• Recast is modeled as same rate and remaining term on the reduced balance.
• Refinance break-even is shown only when closing costs are paid in cash and monthly P&I savings are positive (cash costs ÷ monthly savings). When closing costs are financed into the new loan, a simple cash-cost break-even is not shown because the costs increase the loan balance and interest.
• Qualification, pricing, and fees depend on the lender and your profile.