1. What Is Mortgage Recast?

Mortgage recast is a process where a lender recalculates your monthly mortgage payment after you make a large principal payment. This results in a lower monthly payment while keeping the original loan term and interest rate unchanged.

2. How Does The Calculator Work?

The calculator uses the mortgage recast formula:

Where:

• \( Balance \) — Remaining mortgage balance after large payment ($)
• \( Months\ Left \) — Remaining months in the loan term

Explanation: This formula calculates the new monthly payment by dividing the remaining balance by the number of months left in the loan term.

3. Importance Of Mortgage Recast

Details: Mortgage recast can significantly reduce your monthly mortgage obligations without refinancing, saving you money on closing costs and potentially keeping a favorable interest rate.

4. Using The Calculator

Tips: Enter your remaining mortgage balance in dollars and the number of months left on your loan. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is a mortgage recast fee?
A: Wells Fargo typically charges a fee for mortgage recast, usually around $250-$500, though this may vary.

Q2: How often can I recast my mortgage?
A: Most lenders, including Wells Fargo, allow one recast per mortgage loan, though policies may vary.

Q3: Does recasting affect my interest rate?
A: No, recasting keeps your original interest rate and loan term unchanged - it only adjusts your monthly payment.

Q4: What's the minimum payment required for recast?
A: Wells Fargo typically requires a minimum principal payment of $10,000-$20,000 to qualify for recast.

Q5: How long does the recast process take?
A: The recast process usually takes 30-60 days to complete after submitting the required payment and paperwork.