Advanced Mortgage Recast Calculator
How Mortgage Recast Calculator Works:
- Current Mortgage Balance: The remaining balance on the mortgage before the lump sum payment.
- Annual Interest Rate: The interest rate on the mortgage.
- Remaining Term: The remaining time on the mortgage in years.
- Lump Sum Payment: The amount of the lump sum payment made toward the mortgage balance.
- New Monthly Payment: After the recast, the calculator will output the new monthly payment.
Steps to Use Mortgage Recast Calculator:
- Input the current mortgage balance.
- Enter the annual interest rate.
- Input the remaining term in years.
- Enter the lump sum payment you plan to make.
- Click the “Calculate New Payment” button after the recast to see your new monthly mortgage payment.
This Mortgage Recast Calculator will help your users understand the financial impact of a lump sum payment on their mortgage, including how it can reduce their monthly payments.
Step-by-Step Example for Recast Mortgage Calculator
- Initial Mortgage Setup:
- Original mortgage: $200,000
- Required monthly principal and interest payment: $954
- Payments Over Time:
- After 15 years, you’ve paid $70,000 toward the mortgage principal.
- You decide to make an additional lump sum payment of $15,000.
- Impact of Extra Payment:
- Total paid toward the principal: $85,000
- New mortgage balance: $115,000
- The new early payoff date would be 2 years earlier, ending at Year 28.
- Recasting the Mortgage:
- After recasting, the new required monthly payment is reduced to $848, with the same remaining term.
In conclusion, a Mortgage Recast allows you to lower your monthly payments without shortening the loan term by making an extra lump-sum payment towards the principal. For example, with an initial mortgage of $200,000, if you make a $15,000 extra payment after 15 years, your new balance would be $115,000, and the required monthly payment would decrease from $954 to $848 while keeping the original loan term intact. This process offers a way to manage finances more effectively by reducing monthly obligations.
How did you like to use our Recast Mortgage Calculator?
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