A recast and an extra payment solve different problems

Separate lower required payments from a shorter payoff timeline.

Start with the same principal reduction

Compare both choices after applying the same lump sum. Recasting recalculates the required payment over the original remaining maturity at the same rate. Keeping the old payment usually retires the reduced balance sooner. Comparing a recast with a no-lump alternative without counting the lump’s cash cost would be misleading.

Timing must match the schedule

Month zero in our tool means the reduction happens before the next interest period. A later selected month means the normal payment is made first, then the reduction and recast. The original-loan schedule shows the balance available at that date.

Eligibility is a separate question

A lender can restrict which loans can be recast and set conditions or fees. The model assumes the option exists. Its arithmetic does not establish approval. Check the actual loan terms and how the lender applies extra principal.

Compare recast and keeping the payment. Chase describes its recast process and eligibility boundaries.