You owe $350,000 on your loan and make monthly payments of $2,255. You receive a $50,000 inheritance and decide to use the windfall to recast your mortgage.

For example, some banks would recast at any time you paid 10k or more on the principal. Others may allow only one recast over the life of the loan and it often must be at least six months after ...

When you recast your mortgage, you pay your lender a large sum toward your principal, and your loan is then reamortized - in other words, recalculated based on your new, lower balance.

Your payment is $955. You'll owe $157,568 after 10 years. Your total interest over 30 years will be $143,739. If you pay $20,000 to recast your mortgage at that point, your new balance would be ...