Rocket Mortgage Recast Calculator is a powerful tool designed to help you understand the potential recast of your mortgage. Whether you are planning to make additional payments or adjusting your loan terms, this calculator provides quick and accurate results.
Formula: The recast result is calculated using the formula:
Recast Result = Loan Amount * (1 + (Interest Rate * Loan Term / 100))
How to Use:
- Enter the loan amount in the “Loan Amount” field.
- Input the interest rate as a percentage in the “Interest Rate” field.
- Specify the loan term in years using the “Loan Term” field.
- Click the “Calculate” button to get the recast result.
Example: Suppose you have a loan amount of $200,000, an interest rate of 4.5%, and a loan term of 15 years. After clicking “Calculate,” the recast result will be displayed.
FAQs:
- Q: What is mortgage recasting? A: Mortgage recasting involves making a large payment on your mortgage principal, resulting in a lower monthly payment.
- Q: Can I recast my mortgage multiple times? A: While it depends on your lender, many allow mortgage recasting, but there may be restrictions on frequency.
- Q: Is recasting the same as refinancing? A: No, recasting involves making extra payments to the existing loan, while refinancing replaces the loan with a new one.
Conclusion: The Rocket Mortgage Recast Calculator simplifies the process of understanding how changes to your mortgage may impact your monthly payments. Use this tool to make informed decisions about your mortgage recasting strategy.