I've probably as much suspicion and skepticism as any of you, but a recent mailer from USBank has me wondering what I'm missing...other than seemingly, an opportunity to save a bunch of money on our mortgage.
The basic gist of their letter - due to our "excellent credit and payment history", they're willing to lower our interest rate significantly on our existing USBank mortgage. I can't see the catch.
Existing mortgage details:
Balance of $181K, 15 year fixed @ 4.375%, $1500/month, 157 payments/$238K of payments remaining.
Proposed mortgage details:
New balance of $185,450 (includes all closing costs), 15 year fixed @ 3.250%, $1300/month, 180 payments/$234K of payments remaining.
Everything appears less, except the initial balance bump...monthly and total remaining payments are lower. We've no plans to pay it off early.
Assuming it's an obvious thing to take advantage of...why would a bank offer this up out of the blue?
The basic gist of their letter - due to our "excellent credit and payment history", they're willing to lower our interest rate significantly on our existing USBank mortgage. I can't see the catch.
Existing mortgage details:
Balance of $181K, 15 year fixed @ 4.375%, $1500/month, 157 payments/$238K of payments remaining.
Proposed mortgage details:
New balance of $185,450 (includes all closing costs), 15 year fixed @ 3.250%, $1300/month, 180 payments/$234K of payments remaining.
Everything appears less, except the initial balance bump...monthly and total remaining payments are lower. We've no plans to pay it off early.
Assuming it's an obvious thing to take advantage of...why would a bank offer this up out of the blue?