I originally took out a loan in August 2015 for $132k on this house using the first time buyer rural USDA loan. My interest rate was 4% and my payments have been $826 per month ($268.02 principal, $365.29 interest, $193.50 escrow).
I called Wells Fargo (my current mortgage company) today about refinancing to take advantage of the low interest rates. He said that my new interest rate for a 15 year mortgage would be 2.25% (2.645 APR) and my monthly payment would only go up to $904 (including the escrow).
My outstanding loan principal is $109.5k and they said the new loan would be for around $115k and all closing costs and appraisals and fees would be included in the loan.
I've made 66 monthly payments so far, leaving me with 294 remaining. If I keep my current loan, it would cost an additional $243k over the next 24.5 years. If I refinance, it would cost an additional 163k over the next 15 years. That's a savings of $80k and the house would be paid off almost 10 years earlier.
Is my math wrong? Is there something I'm missing? It just seems too good to be true to me and I'm scared to just assume that there isn't a catch or a gotcha in here somewhere.
Submitted February 20, 2021 at 12:15AM by throwmeawayimsad https://ift.tt/3s9MeMB
