Assuming that the OP knows their rate, they have an impound account of $505, which is what I already factored into my comment above. It’s not fishy at all…
and you don’t pay “points” in a monthly payment.
I was assuming the guy was talking about only the P/I (actually I in this case) portion of the costs, not the impound account for property taxes/insurance. Considering California at 1%, it may be a bit short for combined property taxes/insurance.. PMI too??
As for points, I was referring to amount added in for financing. The advertised/listed rate might have been 6.35%, but depending upon how financed.. there may have been points added. Too many people don’t go through their own loan documents and actually read them.
Most loans that have a prepayment penalty allow for paying up to 20% of principal per year without any penalty, so there is never a problem paying an extra payment here or there.
I have seen more than one that has a severe prepayment penalty on any percentage. One of these was a Countrywide origination… In fact, on that one, the period for prepayment penalty was something like 7 years.
