5.76% fixed for two years on a $1,245,000 New York purchase—what should I compare?

[liv_homes]

I need to choose between financing quotes soon, and the cheapest advertised rate is not producing the lowest two-year cost. One offer is fixed at 5.76% for two years on a New York purchase of about $1,245,000; fees and the applicable loan-to-value band make the comparison less obvious.

Would you rank the options by cash paid over 24 months after allowing for principal reduction, or give more weight to APR? If I am likely to keep the loan for only two years, that seems like one calculation. If refinancing is delayed or unavailable, the reset payment and ongoing affordability seem more important. I am also checking exit charges and portability rather than treating either as an afterthought.

 

[OrlaIves]

For a two-year comparison, I’d calculate the total payments and upfront fees through month 24, then subtract the principal repaid. Also record the remaining balance at that point. APR is useful context, but it can be misleading if its assumed period doesn’t match how long you expect to keep this loan.

 

[calm_chart]

What happens after the fixed period? Without the reset terms, 5.76% doesn’t tell you enough. I’d also ask each lender to show the exact loan-to-value tier used and whether the arrangement fee is paid in cash or added to the balance. Those details could explain the gap from the advertised rate.

 

[slate.modern]

I’d push back on building the decision around a refinance in two years. Rates, approval and the property valuation could all be different then. Compare the quotes over 24 months, certainly, but also test whether the payment after the reset would still be manageable. Early-repayment restrictions matter if you sell or refinance sooner than planned.

 

[hana_tools]

The 24-month period should drive the first comparison. Put every quote on the same loan amount and record upfront cash, monthly payments, principal repaid, the balance at month 24 and any charge for leaving at months 12 or 24.

That supports the short-term price comparison, but Felix’s point about the reset still needs a separate stress test. If the post-fix payment remains affordable, the lower two-year cost can carry more weight; if it does not, flexibility may be worth paying for. Ask for same-day figures in writing, and count portability only where its conditions match a realistic move.