Recast vs Extra Payments
Both send money to principal. They buy you completely different things — one lowers the payment you are obliged to make, the other shortens how long you make it for.
Private by design. Your numbers stay on this device.
Educational estimates only. Not financial, tax, or lending advice.
Which one should you choose?
A recast applies your lump sum to principal and then re-amortizes the remaining balance over the time that was already left, at the rate you already have. The required monthly payment drops. The payoff date does not move.
Extra principal does the opposite. The required payment stays exactly where it is, and every additional dollar shortens the loan — often by years — cutting the total interest against keeping the mortgage untouched.
Which is cheaper is not a general fact — it turns on how much you put in, and whether it arrives as one lump sum or a monthly habit. A recast buys a lower obligation; extra principal buys time. The calculator below prices both against keeping your mortgage unchanged, on the same engine and the same figures, so you can see which your own numbers favour instead of taking a rule of thumb on trust.
Over your 7-year stay
Which one costs less depends entirely on how much money goes in and when. What does not change is the shape: the recast lowers the payment you are obliged to make, and extra principal leaves that obligation alone. Read both rows before deciding which you need.
- Keep current
- Monthly payment
- $2,767
- Net cost over your stay
- $465,286
- vs keeping your mortgage
- —
- Break-even
- —
- Recast
- Monthly payment
- $2,422
- Net cost over your stay
- $442,835
- vs keeping your mortgage
- $22,451
- Break-even
- Ahead from month 1
- Extra payments
- Monthly payment
- $2,967
- Net cost over your stay
- $460,587
- vs keeping your mortgage
- $4,700
- Break-even
- Ahead from month 1
| Measure | Keep current | Recast | Extra payments |
|---|---|---|---|
| Interest rateThe rate on the new or largest loan in this scenario. | 6.875% | 6.875% | 6.875% |
| Starting loan balance | $320,000 | $270,000Low | $320,000 |
| Starting LTV (loan-to-value) | 71.1% | 60.0% | 71.1% |
| Principal & interest | $2,204 | $1,860Low | $2,204 |
| Extra principalVoluntary principal on top of the scheduled payment. Part of what you pay each month, so it belongs in the all-in figure. | — | — | $200 |
| PMI | — | — | — |
| Property tax + insuranceIdentical across every scenario for the same home, but a real part of the monthly bill. | $563 | $563 | $563 |
| Monthly HOA dues | — | — | — |
| All-in monthly payment | $2,767 | $2,423Low | $2,967 |
| Total closing costs | NoneLow | $250 | NoneLow |
| Cash needed at closingClosing costs paid in cash, plus any lump sum you contribute. | $0Low | $50,250 | $0Low |
| Cash received | None | None | None |
| Interest over 7 years | $145,286 | $122,585Low | $140,587 |
| Balance left after 7 yearsWhat you would still owe when you expect to sell or refinance again. | $280,138 | $236,366Low | $258,638 |
| Equity after 7 yearsHome value less the balance owed. Uses your assumed appreciation rate, which is 0% unless you change it — it is never used to remove mortgage insurance early. | $169,862 | $213,634Low | $191,362 |
| Invested balance after 7 yearsOnly the growth on this account is credited against net cost. The contributions are money you paid in, so counting the whole balance would count them twice. | — | — | — |
| Net cost over your planned stayCash closing costs + payments made + balance still owed − cash received. Excludes property tax, insurance and HOA, which are identical across scenarios. | $465,286 | $442,835Low | $460,587 |
| Savings vs keeping your mortgageThis is not the same as interest saved: it also counts the balance you still owe at the end of your stay and any cash you paid upfront. The row above reconciles the two. | Baseline | +$22,451Low | +$4,700 |
| Why that differs from interest saved | — | $22,701 less interest, plus $50,000 of balance you no longer owe, less $50,250 paid in cash at closing — leaving you $22,451 better off. | They agree. |
| Break-even point“Ahead from month 1” means there was no upfront cost to recover. “Never recovers” means the costs are never paid back. | — | Ahead from month 1 | Ahead from month 1 |
| Simple paybackUpfront cash divided by the monthly payment saving. This is the number most people mean by break-even, and it flatters a refinance: it ignores the principal you stop paying down when the term restarts. The equity-adjusted figure above is the one to rank on. | — | 12 years 2 months | No upfront cash to recover |
| Time to payoff | 26 years | 26 years | 21 yearsLow |
| Total interest, full term | $367,691 | $310,240 | $285,112Low |
| Lifetime cost (interest + costs) | $367,691 | $310,490 | $285,112Low |
How to read this: “Low” marks the lowest figure among the scenarios shown — it is not a recommendation. Net cost counts payments made plus the balance still owed at the end of your stay, minus cash received, which is what makes loans of different sizes and terms comparable.
Full amortization schedule
Every payment, month by month: how much goes to interest, how much retires principal, and what you still owe afterwards. The last money column is the all-in cost — principal, interest, any extra you send, mortgage insurance, property tax, homeowners insurance and HOA dues — which is the figure that actually leaves your account. Switch to the annual view for a year-by-year summary, or download the full schedule as a CSV that opens in Excel, Google Sheets and Numbers.
| Month | Payment date | Beginning balance | Payment | Principal | Interest | Extra principal | Ending balance | Cumulative interest | Mortgage insurance | Taxes & insurance | HOA | Total monthly cost | LTV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Jan 01, 2026 | $320,000.00 | $2,204.15 | $370.82 | $1,833.33 | — | $319,629.18 | $1,833.33 | — | $562.50 | — | $2,766.65 | 79.9% |
| 2 | Feb 01, 2026 | $319,629.18 | $2,204.15 | $372.94 | $1,831.21 | — | $319,256.24 | $3,664.54 | — | $562.50 | — | $2,766.65 | 79.8% |
| 3 | Mar 01, 2026 | $319,256.24 | $2,204.15 | $375.08 | $1,829.07 | — | $318,881.16 | $5,493.61 | — | $562.50 | — | $2,766.65 | 79.7% |
| 4 | Apr 01, 2026 | $318,881.16 | $2,204.15 | $377.23 | $1,826.92 | — | $318,503.93 | $7,320.53 | — | $562.50 | — | $2,766.65 | 79.6% |
| 5 | May 01, 2026 | $318,503.93 | $2,204.15 | $379.39 | $1,824.76 | — | $318,124.54 | $9,145.29 | — | $562.50 | — | $2,766.65 | 79.5% |
| 6 | Jun 01, 2026 | $318,124.54 | $2,204.15 | $381.56 | $1,822.59 | — | $317,742.98 | $10,967.88 | — | $562.50 | — | $2,766.65 | 79.4% |
| 7 | Jul 01, 2026 | $317,742.98 | $2,204.15 | $383.75 | $1,820.40 | — | $317,359.23 | $12,788.28 | — | $562.50 | — | $2,766.65 | 79.3% |
| 8 | Aug 01, 2026 | $317,359.23 | $2,204.15 | $385.95 | $1,818.20 | — | $316,973.28 | $14,606.48 | — | $562.50 | — | $2,766.65 | 79.2% |
| 9 | Sep 01, 2026 | $316,973.28 | $2,204.15 | $388.16 | $1,815.99 | — | $316,585.12 | $16,422.47 | — | $562.50 | — | $2,766.65 | 79.2% |
| 10 | Oct 01, 2026 | $316,585.12 | $2,204.15 | $390.38 | $1,813.77 | — | $316,194.74 | $18,236.24 | — | $562.50 | — | $2,766.65 | 79.0% |
| 11 | Nov 01, 2026 | $316,194.74 | $2,204.15 | $392.62 | $1,811.53 | — | $315,802.12 | $20,047.77 | — | $562.50 | — | $2,766.65 | 79.0% |
| 12 | Dec 01, 2026 | $315,802.12 | $2,204.15 | $394.87 | $1,809.28 | — | $315,407.25 | $21,857.05 | — | $562.50 | — | $2,766.65 | 78.8% |
Showing 1–12 of 312 payments
Download any scenario
Each file is generated in your browser — nothing is uploaded. Scenarios with a second lien include a separate block for each loan.
Educational estimates only. Not financial, tax, or lending advice. Want every option side by side instead? Open the full comparison.