This month our new mortgage starts -- moving from a 30 year 4.675 Fixed to a 15 year 3.825 Fixed. Amazingly from Month 1 we pay more to principal than to interest. A lot.
The basic monthly numbers are:
Old payment about $1150.
New payment about $1600.
Old break down about:
$325 to principal. $825 to interest!
New break down about:
$930 to principal! $670 to interest.
Overall, we pay about $450 more per month with the new 15 year mortgage. But we get more than $605 more into the principal. Those are some great numbers and will let us really start building some equity into our house.
This refi originated from our current lender. It didn't cost us anything. From my understanding, our lender got paid from part of the Making Home Affordable program. They sought us out to do the refi, which is great since we were aren't quite 80% LTV so probably couldn't have gotten a good deal on our own.
Even more amazing is when I looked at our old refi docs from about 3 years ago. Because we did refi at that time and paid fees/closing cost, we have only banked a little over $2000 in equity since. I mean, it really was surprising to see our balance only lower by about $2000 those years. However, that refi did save us about $275 a month. So we saved over $9000 since then. But now with our household income up from those days it will be nice switching to the 15 year mortgage where we can really start chewing down the principal.