Comparing a 7.81% three-year fixed mortgage quote in New York

[AishaCole]

I’m caught between two plausible comparisons: APR gives me a standard measure, while the cash cost through the three-year fixed period better matches how long this quote is protected.

The offer is 7.81% on a New York purchase of about $1,205,000. A lower headline rate was advertised, but my quoted loan-to-value tier and lender charges make it a poor guide to the deal actually available.

Should I compare each offer by upfront fees, payments and interest through month 36, together with the remaining balance? I also want to include any cost of repaying early, the portability conditions and what happens after the fixed period. Refinancing may be possible later, but the monthly payment needs to remain manageable if that option is delayed or unattractive.

 

[sailsAndWall]

For a three-year decision horizon, I’d calculate total payments and upfront lender fees through month 36, then show the remaining loan balance at that point. APR is useful as a common comparison, but it may not reflect your actual holding period. I would also test whether the monthly payment remains comfortable without a future refinance.

 

[esme.snow]

What loan amount and loan-to-value tier are you being quoted? On a $1,205,000 purchase, that missing piece could explain why the advertised rate is irrelevant to your offer. Also, is this a three-year adjustable structure or a loan due after three years? Those create different rate-reset and refinancing risks.

 

[esme.snow]

If a decision is due before the lender changes the quote, compare the offers on one identical loan amount now. The trade-off is not only month-36 cost: selling or moving earlier could make an apparently cheaper loan expensive.

Ask for the early-payoff provisions, portability conditions and post-fixed-period structure in writing. Then place the fees, monthly payments and remaining balances side by side at several dates, including month 36. Choose on the three-year figures only if you are also comfortable with the earlier-exit and no-refinance cases.