mortgage calculator with lump sum payment

#Mortgage calculator with lump sum payment how to

You can still make extra payments and pay the loan off faster, but you don’t have to. Using our recasting mortgage calculator, we can estimate your new monthly payment and loan balance once the recast is complete: Before Recast After Recast Principal balance: $243,075 $143,325 Years left on mortgage: 28 28 Principal & interest payment: $1,419 $837Īs you can see, the recast mortgage payment is $582 less than the original payment. You talk with your lender and discover that they can do it for a fee of $250. Let’s also assume that you recently received an inheritance of $100,000 and would like to pay down your mortgage and recast the payment. Your principal and interest payment is $1,419/month.Īfter two years of regular monthly mortgage payments, your principal balance is now $243,075. Let’s assume you took out a 5.50% 30-year fixed mortgage for $250,000 two years ago.

To see how this works, let’s look at a mortgage recast example. Your lender may have a minimum lump sum requirement and/or may charge a small recasting fee to cover their processing expenses. Most lenders offer a recast mortgage option, but qualifying requirements may differ from one lender to another. You’ll also pay closing costs and be subject to the usual income and credit requirements and documentation. When you refinance, you replace your existing mortgage with a new mortgage that likely has a different interest rate and loan term. Note that a mortgage recast is not a refinance.

Lower payments: You pay the new reduced payment for the remainder of the loan term.

Payment recalculation: Your lender recalculates your monthly payment based on the reduced loan balance and remaining loan term.

Lump sum payment: You make a large one-time lump sum payment on your mortgage principal balance.

This is beneficial for homeowners who have a large lump sum of money available and want to use it to reduce their monthly mortgage payments without going through a refinance. The purpose of a recast is to reduce your loan amount and monthly payment while maintaining your original loan term. A recast is also known as mortgage reamortization.

Frequently Asked Questions What is a Mortgage Recast?Ī mortgage recast refers to the process of recalculating the payment and remaining payment schedule of your mortgage without changing the interest rate or loan term.

Step 3 – Pay Down Amount and Recast Fee.

Step 2 – Mortgage Payment and Years Left.

#Mortgage calculator with lump sum payment how to

How To Use Our Mortgage Recasting Calculator.