Comparing a 3.64% one-year fixed mortgage quote in New York

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Buyer
A low opening rate is attractive, but a one-year fix may make the reset terms more important than the headline. For a New York purchase of about $225,000, one quote is 3.64% fixed for 1 year; fees and the applicable loan-to-value band make it less straightforward than the initial promotion suggested.

What is the clearest like-for-like measure here: total cash paid through month 12, interest over that period, or APR? I also want to compare the balance remaining when the fix ends and model what the payment could become afterward.

Portability and early-repayment terms could affect the choice if I move or refinance. Which of those provisions would you treat as decisive for such a short product?
 
I’d compare total cost through month 12 first: payments, lender fees, and the remaining balance at that point. APR is useful, but it can be misleading for your decision if its assumptions do not match a one-year comparison period.

The missing detail is what happens after year one. How is the new rate determined, and are there limits on the reset? That may matter more than a small difference in the opening rate.
 
I wouldn’t focus only on the first-year cash total. A cheaper introductory year can still leave you exposed if the payment resets sharply and refinancing is unavailable or expensive. Run at least two post-reset payment scenarios and ask whether either would strain monthly affordability.

Also compare every quote at the same loan amount and loan-to-value tier. Otherwise the rate comparison is not like-for-like.
 
Agreed on the reset risk, though I’d treat portability as secondary unless moving during that year is a realistic possibility. Don’t assume the word means the existing rate automatically follows you to another property; ask the lender to explain the conditions in writing.

A simple table should include rate, monthly payment, upfront lender fees, balance after 12 months, early-repayment cost, and the post-year-one terms.
 
One more caution: don’t make the deal work only by assuming you can refinance after 12 months. Rates, property value, income, and refinancing costs may all look different then.

I’d request a fee breakdown and separate lender charges from third-party purchase costs. Then compare the 3.64% offer with alternatives over the same 12-month period and under the same down-payment assumptions. That should show whether the lower advertised rate was genuinely cheaper or merely presented differently.
 
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