Comparing a 5.64% five-year fixed mortgage quote in Mexico City

W

woodworksAndFinch

Buyer
I may be too close to this to judge it clearly. I have a 5.64% quote with a five-year fixed period for a Mexico City property priced around MX$20,970,000. The headline looked attractive, but arrangement fees and the loan-to-value tier changed the picture.

For comparing lenders, would you prioritize APR, interest paid during those five years, or total cash outlay including fees? I’m also checking monthly affordability, portability, early-repayment terms and what happens when the fixed period ends.
 
For the first comparison, I’d use total cash paid through month 60, including upfront and financed fees, then put the remaining principal beside it. That prevents a lower payment or rate from looking cheaper merely because less principal was repaid. APR is useful for screening, but only when every lender calculates it using comparable assumptions.
 
What loan amount and loan-to-value tier are you actually using? Also, are the arrangement fees paid in cash or added to the mortgage? Without those two details, the 5.64% figure is difficult to assess. Your expected ownership period matters too: a five-year comparison is less useful if you think you may sell or refinance after two.
 
One more point: run at least two timelines rather than assuming you refinance exactly when the fixed period ends. I’d compare an early exit at your plausible sale date, then five years with the balance still outstanding. Include any early-repayment charge in the first case. That should show whether the fee-heavy quote only works if you keep it long enough.
 
I wouldn’t reduce everything to one all-in number. A quote can be cheapest over five years and still be uncomfortable month to month. Check the payment against your normal budget, then test a higher payment after the fixed period. Rate-reset risk deserves separate attention because a refinance may not be available on the terms you expect.
 
Portability is another term that can sound broader than it is. Ask the lender to explain in writing what happens in specific scenarios: selling and buying another property, changing the loan amount, or moving before five years. Do the same for partial overpayments versus full repayment. The useful answer is the cost and process in your likely scenario, not simply “portable” or “prepayment allowed.”
 
I’d build a small table with one column per lender: cash due at closing, monthly payment, total payments over your chosen period, fees, early-exit cost, and balance remaining. Then add a second five-year scenario with no assumed refinance and a less favorable reset payment. That makes the trade-off visible without pretending the future rate can be predicted.
 
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