UCO,
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.
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.
