Recasting After Selling a House
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 |
|---|
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
You found the next home before the last one sold, so you bought with a smaller down payment and a bigger payment than you wanted. Then the old house closed. Recasting is the tool built for exactly this moment — put the proceeds down and reset the payment, without giving up your rate.
This is the textbook use case for a recast. You closed on the new place before the old one sold, so instead of the 30%–40% down payment you'd planned, you scraped together the minimum — leaving a higher balance and a payment that pinches. When the old home finally sells, the proceeds arrive as a lump sum. A recast turns that lump sum into a permanently lower payment.
Why a recast beats a refinance here
If you bought recently, you're likely holding a current-market rate already — refinancing wouldn't lower it, and might raise it, all while charging thousands in closing costs. A recast keeps your exact rate and term and simply re-amortizes the smaller balance. For a few hundred dollars, your required payment drops to reflect the money you put down. Same loan, lower bill.
How the timing works
- Old home closes. Proceeds land in your account.
- Confirm eligibility. Ask your servicer whether the new loan qualifies and what the minimum principal and fee are.
- Apply the lump sum to principal and submit the recast request (order can matter — ask which comes first).
- New payment takes effect, usually within a billing cycle or two.
The calculator above is set up for this scenario — a larger balance, a recent rate, and a sizeable lump from a sale. Enter your figures to see the new payment and how quickly the small fee is recovered.
Tip: if the new loan can't be recast, applying the proceeds as an extra payment still cuts interest and term — you just won't get the lower required payment unless rates have dropped enough to refinance.
Recast after selling — FAQ
Can I recast my new mortgage after selling my old home?
Yes — this is one of the most common reasons to recast. You apply the sale proceeds to the new loan's principal and the servicer re-amortizes to a lower payment, keeping your rate and term.
Why recast instead of refinance after selling?
A recast keeps your current interest rate. If you bought recently at today's rates, refinancing wouldn't lower the rate — a recast simply drops the payment for a small fee.
How soon after selling can I recast?
Once the sale closes and funds are available, you can apply them. Servicers often require a couple of payments on the new loan first; confirm timing with yours.
Is there a minimum amount to apply?
Usually $5,000–$10,000 in principal, though sale proceeds typically far exceed that. Check your servicer's minimum and recast fee.
What if my loan can't be recast?
Apply the proceeds as an extra principal payment instead. Your payment won't drop, but you'll shorten the term and cut interest — or consider refinancing if rates have fallen.