I need to decide on this financing quote soon. The immediate attraction is payment certainty, but it lasts for only one year: 7.76% fixed on a New York purchase of around $1,080,000.
The headline offer looked cheaper until the fee structure and loan-to-value band were applied. For comparing lenders, should I focus on all cash paid in year one or model the cost of keeping the mortgage after the fixed period?
My current thought is to use two branches. If refinancing after a year is realistic, I would include the setup and exit costs in that short holding period. If it is not, I need to know the reset payment and remaining balance. I am also checking early-repayment restrictions and portability, since either refinancing or moving could change which quote works best.
The headline offer looked cheaper until the fee structure and loan-to-value band were applied. For comparing lenders, should I focus on all cash paid in year one or model the cost of keeping the mortgage after the fixed period?
My current thought is to use two branches. If refinancing after a year is realistic, I would include the setup and exit costs in that short holding period. If it is not, I need to know the reset payment and remaining balance. I am also checking early-repayment restrictions and portability, since either refinancing or moving could change which quote works best.