Investment Property Mortgage Recast
Payment breakdown
Interest & break-even
Total monthly housing cost
Where your money goes over time
If the freed-up cash is invested at 7%, the saved payments grow to about $0 by payoff.
Four ways to use that cash
| Scenario | Monthly P&I | Interest left | Payoff | What happens |
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Show the full amortization schedule (before vs after)
| # | Int. now | Prin. now | Bal. now | Int. recast | Prin. recast | Bal. recast |
|---|
How to use this calculator
- Enter your current loan balance, interest rate, and remaining term.
- Enter the lump-sum amount you plan to pay toward principal.
- Click Calculate to see your new payment, interest savings, and comparison.
About this tool
For a landlord, the monthly payment drop from a recast isn't just savings — it's cash flow. Recasting can lift a property's monthly return without a new appraisal, a fresh underwrite, or the rate reset that a refinance forces. Model the cash-flow gain below, then check the eligibility wrinkles that come with investor loans.
Recasting as a cash-flow tool
On a rental, the number that matters most isn't the interest you save over 27 years — it's how much more the property drops into your account every month. That's exactly the "you save" figure in the calculator: the reduction in your principal-and-interest payment is a direct, permanent increase in monthly cash flow, assuming rent and expenses hold. For a property running thin on cash flow, a recast can be the difference between a drag and a keeper.
The appeal over refinancing is sharper for investors. Investment-property refinances often carry higher rates and rate add-ons, plus a full income and appraisal review. A recast sidesteps all of that: your rate and term stay put, and there's no new qualification. You trade a lump of capital for a lower fixed cost — a clean lever when you have proceeds from another sale or strong reserves.
The trade-offs to weigh
- Locked-up capital. Cash sent to a rental's principal is hard to get back without a sale or a HELOC. For investors who prize dry powder for the next deal, that liquidity cost is real — the calculator's invest-instead comparison puts a number on it.
- Return on the cash. Paying down a 7% loan is a guaranteed 7% return; deploying the same cash into another property or the market might do better or worse. Compare the certain saving against your expected return.
- Eligibility. Not every servicer recasts investment-property loans, and investor overlays vary. Confirm your specific loan qualifies before planning.
- Tax treatment. Mortgage interest on a rental is generally deductible, which changes the after-tax value of paying it down. Talk to a tax professional about your situation.
Weigh recast against the alternatives
Cash-flow relief now, faster payoff, refinance, or redeploy the capital — compare on your numbers.
Investor recast questions
Can you recast an investment-property mortgage?
Sometimes — it depends on the loan type and investor. Many conventional investment loans can be recast; confirm eligibility with your servicer, as overlays vary more on investor loans.
How does recasting help rental cash flow?
It permanently lowers the monthly principal-and-interest payment, which directly increases the property's monthly cash flow if rent and expenses stay the same.
Recast or refinance a rental?
Recasting keeps your rate and skips underwriting, which is attractive since investment-property refinances often carry higher rates and add-ons. Refinance only if the rate improvement is large enough to justify the costs.
Should I pay down the rental or buy another property?
That's a capital-allocation question. Paying down is a guaranteed return equal to your rate; another deal carries risk and potential upside. The invest-instead figure in the calculator helps you compare.