Comparing a 6.65% two-year fixed quote on an $815,000 purchase

[weighTheRoute]

We want payment certainty for the next two years, but the quote is harder to judge once fees and our loan-to-value band are included. The purchase is about $815,000 in New York, and the fixed rate offered is 6.65%.

Should I compare lenders over the period we realistically expect to keep the property, using payments, fees and remaining balance, rather than relying on APR alone? We could move before the two years are up, so exit charges and the conditions attached to portability may matter more than a small rate difference.

 

[uma.park]

Given the possible move, I’d compare total cost up to your likely sale date: monthly payments, upfront or financed fees, and any early-repayment charge. APR can help, but it may be less useful if its assumed timeline does not match yours. Also run the monthly payment after the fixed period rather than relying on a favorable refinance assumption.

 

[weighTheRoute]

That makes sense. I was treating the two-year point as the comparison period, but an earlier move could make the fees much more important. I need to ask whether each fee is paid upfront or added to the balance.

I also don’t yet have a clear answer on portability. Is there anything specific I should ask beyond whether the loan can move with us?

 

[OrlaIves]

Ask what conditions apply at the time of the move, whether a new property and loan-to-value tier are assessed, and what happens if you need a different loan amount. A simple “portable” label may not tell you enough.

I’d also request side-by-side figures for staying two years, selling earlier, and keeping the loan beyond the fixed period. That exposes both exit costs and rate-reset risk.

 

[photosAndThread]

Getting this wrong could leave you with a manageable headline cost but an uncomfortable monthly commitment. I would set the maximum payment that still leaves room for moving, repairs and other surprises, then discard any quote above it before comparing two-year totals.

I would also test the payment after the fixed term at a less favourable rate. Refinancing may be possible then, but the purchase should not depend on obtaining an attractive new deal.