Mortgage Recast worksheet

1. New monthly payment after recast: $1,689.50

1. Find your current payment, so we can see what changes. A standard formula finds the one amount that clears the loan in 336 months, where the monthly rate is the yearly rate ÷ 12

   $\frac{\mathrm{\$275,000.00}\times 0.00625}{1-{\left(1+0.00625\right)}^{\mathrm{-336}}}$$=\mathrm{\$1,960.39}$

2. Take the lump sum off your balance

   $\mathrm{\$275,000.00}-\mathrm{\$38,000.00}$$=\mathrm{\$237,000.00}$

3. Recast: work out a new payment on the lower balance. The rate and the end date stay the same. A standard formula finds the one amount that clears the loan in 336 months, where the monthly rate is the yearly rate ÷ 12

   $\frac{\mathrm{\$237,000.00}\times 0.00625}{1-{\left(1+0.00625\right)}^{\mathrm{-336}}}$$=\mathrm{\$1,689.50}$

4. See how much lower your monthly payment is

   $\mathrm{\$1,960.39}-\mathrm{\$1,689.50}$$=\mathrm{\$270.89}$

5. Find the interest left if you do nothing: all payments minus the balance

   $\mathrm{\$1,960.39}\times 336-\mathrm{\$275,000.00}$$=\mathrm{\$383,689.65}$

6. Find the recast's savings: interest you avoid, minus the fee

   $\mathrm{\$383,689.65}-\mathrm{\$330,670.72}-\mathrm{\$250.00}$$=\mathrm{\$52,768.93}$

7. No recast: keep paying $1,960.39. The lower balance clears early, so count the interest month by month

   $227\text{\hspace{0.17em}months}$$=\mathrm{\$206,302.18}\text{\hspace{0.17em}interest}$

8. Find what the prepayment saves

   $\mathrm{\$383,689.65}-\mathrm{\$206,302.18}$$=\mathrm{\$177,387.47}$

9. See how long the lower payment takes to cover the fee, rounded up to a whole month

   $\frac{\mathrm{\$250.00}}{\mathrm{\$270.89}}$$=1\text{\hspace{0.17em}month}$

2. New monthly payment after recast: $931.42

1. Find your current payment, so we can see what changes. A standard formula finds the one amount that clears the loan in 360 months, where the monthly rate is the yearly rate ÷ 12

   $\frac{\mathrm{\$200,000.00}\times 0.00583333}{1-{\left(1+0.00583333\right)}^{\mathrm{-360}}}$$=\mathrm{\$1,330.60}$

2. Take the lump sum off your balance

   $\mathrm{\$200,000.00}-\mathrm{\$60,000.00}$$=\mathrm{\$140,000.00}$

3. Recast: work out a new payment on the lower balance. The rate and the end date stay the same. A standard formula finds the one amount that clears the loan in 360 months, where the monthly rate is the yearly rate ÷ 12

   $\frac{\mathrm{\$140,000.00}\times 0.00583333}{1-{\left(1+0.00583333\right)}^{\mathrm{-360}}}$$=\mathrm{\$931.42}$

4. See how much lower your monthly payment is

   $\mathrm{\$1,330.60}-\mathrm{\$931.42}$$=\mathrm{\$399.18}$

5. Find the interest left if you do nothing: all payments minus the balance

   $\mathrm{\$1,330.60}\times 360-\mathrm{\$200,000.00}$$=\mathrm{\$279,017.80}$

6. Find the recast's savings: interest you avoid, minus the fee

   $\mathrm{\$279,017.80}-\mathrm{\$195,312.46}-\mathrm{\$260.00}$$=\mathrm{\$83,445.34}$

7. No recast: keep paying $1,330.60. The lower balance clears early, so count the interest month by month

   $164\text{\hspace{0.17em}months}$$=\mathrm{\$77,625.04}\text{\hspace{0.17em}interest}$

8. Find what the prepayment saves

   $\mathrm{\$279,017.80}-\mathrm{\$77,625.04}$$=\mathrm{\$201,392.75}$

9. See how long the lower payment takes to cover the fee, rounded up to a whole month

   $\frac{\mathrm{\$260.00}}{\mathrm{\$399.18}}$$=1\text{\hspace{0.17em}month}$

3. New monthly payment after recast: $1,000.50

1. Find your current payment, so we can see what changes. A standard formula finds the one amount that clears the loan in 336 months, where the monthly rate is the yearly rate ÷ 12

   $\frac{\mathrm{\$225,000.00}\times 0.00441667}{1-{\left(1+0.00441667\right)}^{\mathrm{-336}}}$$=\mathrm{\$1,286.36}$

2. Take the lump sum off your balance

   $\mathrm{\$225,000.00}-\mathrm{\$50,000.00}$$=\mathrm{\$175,000.00}$

3. Recast: work out a new payment on the lower balance. The rate and the end date stay the same. A standard formula finds the one amount that clears the loan in 336 months, where the monthly rate is the yearly rate ÷ 12

   $\frac{\mathrm{\$175,000.00}\times 0.00441667}{1-{\left(1+0.00441667\right)}^{\mathrm{-336}}}$$=\mathrm{\$1,000.50}$

4. See how much lower your monthly payment is

   $\mathrm{\$1,286.36}-\mathrm{\$1,000.50}$$=\mathrm{\$285.86}$

5. Find the interest left if you do nothing: all payments minus the balance

   $\mathrm{\$1,286.36}\times 336-\mathrm{\$225,000.00}$$=\mathrm{\$207,216.79}$

6. Find the recast's savings: interest you avoid, minus the fee

   $\mathrm{\$207,216.79}-\mathrm{\$161,168.62}-\mathrm{\$450.00}$$=\mathrm{\$45,598.18}$

7. No recast: keep paying $1,286.36. The lower balance clears early, so count the interest month by month

   $209\text{\hspace{0.17em}months}$$=\mathrm{\$93,085.61}\text{\hspace{0.17em}interest}$

8. Find what the prepayment saves

   $\mathrm{\$207,216.79}-\mathrm{\$93,085.61}$$=\mathrm{\$114,131.19}$

9. See how long the lower payment takes to cover the fee, rounded up to a whole month

   $\frac{\mathrm{\$450.00}}{\mathrm{\$285.86}}$$=2\text{\hspace{0.17em}months}$

4. New monthly payment after recast: $2,113.33

1. Find your current payment, so we can see what changes. A standard formula finds the one amount that clears the loan in 336 months, where the monthly rate is the yearly rate ÷ 12

   $\frac{\mathrm{\$345,000.00}\times 0.00666667}{1-{\left(1+0.00666667\right)}^{\mathrm{-336}}}$$=\mathrm{\$2,576.32}$

2. Take the lump sum off your balance

   $\mathrm{\$345,000.00}-\mathrm{\$62,000.00}$$=\mathrm{\$283,000.00}$

3. Recast: work out a new payment on the lower balance. The rate and the end date stay the same. A standard formula finds the one amount that clears the loan in 336 months, where the monthly rate is the yearly rate ÷ 12

   $\frac{\mathrm{\$283,000.00}\times 0.00666667}{1-{\left(1+0.00666667\right)}^{\mathrm{-336}}}$$=\mathrm{\$2,113.33}$

4. See how much lower your monthly payment is

   $\mathrm{\$2,576.32}-\mathrm{\$2,113.33}$$=\mathrm{\$462.99}$

5. Find the interest left if you do nothing: all payments minus the balance

   $\mathrm{\$2,576.32}\times 336-\mathrm{\$345,000.00}$$=\mathrm{\$520,642.62}$

6. Find the recast's savings: interest you avoid, minus the fee

   $\mathrm{\$520,642.62}-\mathrm{\$427,077.86}-\mathrm{\$240.00}$$=\mathrm{\$93,324.76}$

7. No recast: keep paying $2,576.32. The lower balance clears early, so count the interest month by month

   $199\text{\hspace{0.17em}months}$$=\mathrm{\$228,009.07}\text{\hspace{0.17em}interest}$

8. Find what the prepayment saves

   $\mathrm{\$520,642.62}-\mathrm{\$228,009.07}$$=\mathrm{\$292,633.55}$

9. See how long the lower payment takes to cover the fee, rounded up to a whole month

   $\frac{\mathrm{\$240.00}}{\mathrm{\$462.99}}$$=1\text{\hspace{0.17em}month}$

5. New monthly payment after recast: $2,012.87

1. Find your current payment, so we can see what changes. A standard formula finds the one amount that clears the loan in 300 months, where the monthly rate is the yearly rate ÷ 12

   $\frac{\mathrm{\$320,000.00}\times 0.00633333}{1-{\left(1+0.00633333\right)}^{\mathrm{-300}}}$$=\mathrm{\$2,385.63}$

2. Take the lump sum off your balance

   $\mathrm{\$320,000.00}-\mathrm{\$50,000.00}$$=\mathrm{\$270,000.00}$

3. Recast: work out a new payment on the lower balance. The rate and the end date stay the same. A standard formula finds the one amount that clears the loan in 300 months, where the monthly rate is the yearly rate ÷ 12

   $\frac{\mathrm{\$270,000.00}\times 0.00633333}{1-{\left(1+0.00633333\right)}^{\mathrm{-300}}}$$=\mathrm{\$2,012.87}$

4. See how much lower your monthly payment is

   $\mathrm{\$2,385.63}-\mathrm{\$2,012.87}$$=\mathrm{\$372.75}$

5. Find the interest left if you do nothing: all payments minus the balance

   $\mathrm{\$2,385.63}\times 300-\mathrm{\$320,000.00}$$=\mathrm{\$395,687.69}$

6. Find the recast's savings: interest you avoid, minus the fee

   $\mathrm{\$395,687.69}-\mathrm{\$333,861.49}-\mathrm{\$200.00}$$=\mathrm{\$61,626.20}$

7. No recast: keep paying $2,385.63. The lower balance clears early, so count the interest month by month

   $200\text{\hspace{0.17em}months}$$=\mathrm{\$206,712.50}\text{\hspace{0.17em}interest}$

8. Find what the prepayment saves

   $\mathrm{\$395,687.69}-\mathrm{\$206,712.50}$$=\mathrm{\$188,975.19}$

9. See how long the lower payment takes to cover the fee, rounded up to a whole month

   $\frac{\mathrm{\$200.00}}{\mathrm{\$372.75}}$$=1\text{\hspace{0.17em}month}$

6. New monthly payment after recast: $1,445.54

1. Find your current payment, so we can see what changes. A standard formula finds the one amount that clears the loan in 336 months, where the monthly rate is the yearly rate ÷ 12

   $\frac{\mathrm{\$280,000.00}\times 0.005}{1-{\left(1+0.005\right)}^{\mathrm{-336}}}$$=\mathrm{\$1,722.35}$

2. Take the lump sum off your balance

   $\mathrm{\$280,000.00}-\mathrm{\$45,000.00}$$=\mathrm{\$235,000.00}$

3. Recast: work out a new payment on the lower balance. The rate and the end date stay the same. A standard formula finds the one amount that clears the loan in 336 months, where the monthly rate is the yearly rate ÷ 12

   $\frac{\mathrm{\$235,000.00}\times 0.005}{1-{\left(1+0.005\right)}^{\mathrm{-336}}}$$=\mathrm{\$1,445.54}$

4. See how much lower your monthly payment is

   $\mathrm{\$1,722.35}-\mathrm{\$1,445.54}$$=\mathrm{\$276.81}$

5. Find the interest left if you do nothing: all payments minus the balance

   $\mathrm{\$1,722.35}\times 336-\mathrm{\$280,000.00}$$=\mathrm{\$298,708.67}$

6. Find the recast's savings: interest you avoid, minus the fee

   $\mathrm{\$298,708.67}-\mathrm{\$250,701.92}-\mathrm{\$275.00}$$=\mathrm{\$47,731.75}$

7. No recast: keep paying $1,722.35. The lower balance clears early, so count the interest month by month

   $230\text{\hspace{0.17em}months}$$=\mathrm{\$160,872.92}\text{\hspace{0.17em}interest}$

8. Find what the prepayment saves

   $\mathrm{\$298,708.67}-\mathrm{\$160,872.92}$$=\mathrm{\$137,835.76}$

9. See how long the lower payment takes to cover the fee, rounded up to a whole month

   $\frac{\mathrm{\$275.00}}{\mathrm{\$276.81}}$$=1\text{\hspace{0.17em}month}$

7. New monthly payment after recast: $1,625.28

1. Find your current payment, so we can see what changes. A standard formula finds the one amount that clears the loan in 384 months, where the monthly rate is the yearly rate ÷ 12

   $\frac{\mathrm{\$340,000.00}\times 0.00466667}{1-{\left(1+0.00466667\right)}^{\mathrm{-384}}}$$=\mathrm{\$1,905.50}$

2. Take the lump sum off your balance

   $\mathrm{\$340,000.00}-\mathrm{\$50,000.00}$$=\mathrm{\$290,000.00}$

3. Recast: work out a new payment on the lower balance. The rate and the end date stay the same. A standard formula finds the one amount that clears the loan in 384 months, where the monthly rate is the yearly rate ÷ 12

   $\frac{\mathrm{\$290,000.00}\times 0.00466667}{1-{\left(1+0.00466667\right)}^{\mathrm{-384}}}$$=\mathrm{\$1,625.28}$

4. See how much lower your monthly payment is

   $\mathrm{\$1,905.50}-\mathrm{\$1,625.28}$$=\mathrm{\$280.22}$

5. Find the interest left if you do nothing: all payments minus the balance

   $\mathrm{\$1,905.50}\times 384-\mathrm{\$340,000.00}$$=\mathrm{\$391,711.94}$

6. Find the recast's savings: interest you avoid, minus the fee

   $\mathrm{\$391,711.94}-\mathrm{\$334,107.24}-\mathrm{\$225.00}$$=\mathrm{\$57,379.70}$

7. No recast: keep paying $1,905.50. The lower balance clears early, so count the interest month by month

   $267\text{\hspace{0.17em}months}$$=\mathrm{\$216,946.69}\text{\hspace{0.17em}interest}$

8. Find what the prepayment saves

   $\mathrm{\$391,711.94}-\mathrm{\$216,946.69}$$=\mathrm{\$174,765.25}$

9. See how long the lower payment takes to cover the fee, rounded up to a whole month

   $\frac{\mathrm{\$225.00}}{\mathrm{\$280.22}}$$=1\text{\hspace{0.17em}month}$

8. New monthly payment after recast: $1,593.75

1. Find your current payment, so we can see what changes. A standard formula finds the one amount that clears the loan in 288 months, where the monthly rate is the yearly rate ÷ 12

   $\frac{\mathrm{\$300,000.00}\times 0.00483333}{1-{\left(1+0.00483333\right)}^{\mathrm{-288}}}$$=\mathrm{\$1,931.82}$

2. Take the lump sum off your balance

   $\mathrm{\$300,000.00}-\mathrm{\$52,500.00}$$=\mathrm{\$247,500.00}$

3. Recast: work out a new payment on the lower balance. The rate and the end date stay the same. A standard formula finds the one amount that clears the loan in 288 months, where the monthly rate is the yearly rate ÷ 12

   $\frac{\mathrm{\$247,500.00}\times 0.00483333}{1-{\left(1+0.00483333\right)}^{\mathrm{-288}}}$$=\mathrm{\$1,593.75}$

4. See how much lower your monthly payment is

   $\mathrm{\$1,931.82}-\mathrm{\$1,593.75}$$=\mathrm{\$338.07}$

5. Find the interest left if you do nothing: all payments minus the balance

   $\mathrm{\$1,931.82}\times 288-\mathrm{\$300,000.00}$$=\mathrm{\$256,364.24}$

6. Find the recast's savings: interest you avoid, minus the fee

   $\mathrm{\$256,364.24}-\mathrm{\$211,500.50}-\mathrm{\$300.00}$$=\mathrm{\$44,563.74}$

7. No recast: keep paying $1,931.82. The lower balance clears early, so count the interest month by month

   $201\text{\hspace{0.17em}months}$$=\mathrm{\$139,359.28}\text{\hspace{0.17em}interest}$

8. Find what the prepayment saves

   $\mathrm{\$256,364.24}-\mathrm{\$139,359.28}$$=\mathrm{\$117,004.96}$

9. See how long the lower payment takes to cover the fee, rounded up to a whole month

   $\frac{\mathrm{\$300.00}}{\mathrm{\$338.07}}$$=1\text{\hspace{0.17em}month}$

9. New monthly payment after recast: $1,193.80

1. Find your current payment, so we can see what changes. A standard formula finds the one amount that clears the loan in 288 months, where the monthly rate is the yearly rate ÷ 12

   $\frac{\mathrm{\$250,000.00}\times 0.00416667}{1-{\left(1+0.00416667\right)}^{\mathrm{-288}}}$$=\mathrm{\$1,492.24}$

2. Take the lump sum off your balance

   $\mathrm{\$250,000.00}-\mathrm{\$50,000.00}$$=\mathrm{\$200,000.00}$

3. Recast: work out a new payment on the lower balance. The rate and the end date stay the same. A standard formula finds the one amount that clears the loan in 288 months, where the monthly rate is the yearly rate ÷ 12

   $\frac{\mathrm{\$200,000.00}\times 0.00416667}{1-{\left(1+0.00416667\right)}^{\mathrm{-288}}}$$=\mathrm{\$1,193.80}$

4. See how much lower your monthly payment is

   $\mathrm{\$1,492.24}-\mathrm{\$1,193.80}$$=\mathrm{\$298.45}$

5. Find the interest left if you do nothing: all payments minus the balance

   $\mathrm{\$1,492.24}\times 288-\mathrm{\$250,000.00}$$=\mathrm{\$179,766.21}$

6. Find the recast's savings: interest you avoid, minus the fee

   $\mathrm{\$179,766.21}-\mathrm{\$143,812.97}-\mathrm{\$225.00}$$=\mathrm{\$35,728.24}$

7. No recast: keep paying $1,492.24. The lower balance clears early, so count the interest month by month

   $197\text{\hspace{0.17em}months}$$=\mathrm{\$93,370.04}\text{\hspace{0.17em}interest}$

8. Find what the prepayment saves

   $\mathrm{\$179,766.21}-\mathrm{\$93,370.04}$$=\mathrm{\$86,396.17}$

9. See how long the lower payment takes to cover the fee, rounded up to a whole month

   $\frac{\mathrm{\$225.00}}{\mathrm{\$298.45}}$$=1\text{\hspace{0.17em}month}$

10. New monthly payment after recast: $1,714.76

1. Find your current payment, so we can see what changes. A standard formula finds the one amount that clears the loan in 252 months, where the monthly rate is the yearly rate ÷ 12

   $\frac{\mathrm{\$275,000.00}\times 0.006}{1-{\left(1+0.006\right)}^{\mathrm{-252}}}$$=\mathrm{\$2,119.37}$

2. Take the lump sum off your balance

   $\mathrm{\$275,000.00}-\mathrm{\$52,500.00}$$=\mathrm{\$222,500.00}$

3. Recast: work out a new payment on the lower balance. The rate and the end date stay the same. A standard formula finds the one amount that clears the loan in 252 months, where the monthly rate is the yearly rate ÷ 12

   $\frac{\mathrm{\$222,500.00}\times 0.006}{1-{\left(1+0.006\right)}^{\mathrm{-252}}}$$=\mathrm{\$1,714.76}$

4. See how much lower your monthly payment is

   $\mathrm{\$2,119.37}-\mathrm{\$1,714.76}$$=\mathrm{\$404.61}$

5. Find the interest left if you do nothing: all payments minus the balance

   $\mathrm{\$2,119.37}\times 252-\mathrm{\$275,000.00}$$=\mathrm{\$259,081.35}$

6. Find the recast's savings: interest you avoid, minus the fee

   $\mathrm{\$259,081.35}-\mathrm{\$209,620.36}-\mathrm{\$365.00}$$=\mathrm{\$49,095.98}$

7. No recast: keep paying $2,119.37. The lower balance clears early, so count the interest month by month

   $167\text{\hspace{0.17em}months}$$=\mathrm{\$129,659.68}\text{\hspace{0.17em}interest}$

8. Find what the prepayment saves

   $\mathrm{\$259,081.35}-\mathrm{\$129,659.68}$$=\mathrm{\$129,421.67}$

9. See how long the lower payment takes to cover the fee, rounded up to a whole month

   $\frac{\mathrm{\$365.00}}{\mathrm{\$404.61}}$$=1\text{\hspace{0.17em}month}$