Metric
—
Free · Private · No sign-up
Recast vs Refinance Calculator
Compare payment relief, cash required today, transaction fees, interest, and payoff timing under the same assumptions.
Primary estimateLive · USD
Estimated result
—
Based on the assumptions entered.
Metric
—
Metric
—
Scenario comparison
Longer bars represent the larger value.
| Scenario | Value | Detail |
|---|
What this result means
Recasting applies cash to principal and keeps your existing rate and remaining term. Refinancing replaces the loan, so a lower payment can come from a new rate, a new term, or both. Finly keeps principal contributions separate from transaction fees so the cash commitment is visible.
How this calculator works
Each loan uses the fixed-rate payment formula. Refinance points equal the selected percentage of refinance principal. The simple payment break-even divides refinance transaction fees by monthly payment savings versus the current loan.
Worked example
For example, start with a $350,000 balance at 6.5% with 25 years remaining. Compare a $50,000 recast contribution and $250 fee with a 20-year refinance at 5.75% and $6,000 closing costs. Finly keeps principal, fees, monthly payment, interest, and payoff time in separate rows so a smaller payment cannot hide a longer or more expensive path.
Assumptions and limitations
- Fixed-rate loans with monthly compounding
- Closing costs and points are paid in cash rather than financed
- No escrow, tax deduction, prepayment penalty, or opportunity-cost modeling
- A lower displayed value is descriptive, not a recommendation
Frequently asked questions
Is it better to recast or refinance a mortgage?
It depends on the numbers and your goal. Recasting keeps the current rate and term with a typically smaller fee; refinancing replaces the loan and may change the rate and payoff date. Compare total cash due, payment, interest, fees, and break-even together.
Does a lower refinance payment always mean lower cost?
No. A longer new term can reduce the payment while increasing total interest. Compare payment, fees, interest, and payoff timing together.
Which usually costs less upfront, a recast or refinance?
A recast commonly has a smaller administrative fee, while a refinance may include closing costs and points. Actual lender charges and eligibility vary.
How is refinance break-even calculated?
Finly divides refinance transaction fees by the monthly payment savings versus the current loan. This is a simple cash-flow break-even and does not include tax effects or the opportunity cost of cash.
Are refinance points included?
Yes. Points are calculated as a percentage of refinance principal and included in transaction fees and cash needed.
Sources and methodology
See the official primary source used for this calculator and read Finly’s calculation methodology.
Updated and logic reviewed: September 17, 2026. Results are educational estimates, not financial, tax, legal, or investment advice.