1. What is Mortgage Recalculation?

Mortgage recasting is a process where your lender recalculates your monthly payment after you make a large principal payment, reducing your monthly payments while keeping the same loan term and interest rate.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( Balance \) — Current mortgage balance ($)
• \( Remaining Months \) — Number of months left in the loan term

Explanation: This calculation provides an estimate of your new monthly payment after a mortgage recast with Wells Fargo.

3. Importance of Mortgage Recalculation

Details: Mortgage recasting can significantly lower your monthly payments without refinancing, saving you money while maintaining your current interest rate and loan term.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: What is a mortgage recast?
A: A mortgage recast is when your lender recalculates your monthly payment after a large principal payment, reducing your monthly obligation.

Q2: Does Wells Fargo charge for mortgage recasting?
A: Wells Fargo typically charges a fee for mortgage recasting, usually around $200-$250, but policies may vary.

Q3: How does recasting differ from refinancing?
A: Recasting keeps your existing loan terms and interest rate while reducing payments, while refinancing involves getting a new loan with potentially different terms.

Q4: What's the minimum payment required for a recast?
A: Wells Fargo typically requires a minimum principal payment (often $5,000-$10,000) to qualify for a mortgage recast.

Q5: Are there any downsides to mortgage recasting?
A: The main downside is the recasting fee, and it may not be available for all loan types. It also doesn't lower your interest rate like refinancing might.