I need to choose between mortgage illustrations for a roughly R$1,904,000 purchase in Rio de Janeiro, and the immediate trade-off is rate versus flexibility. One quote is fixed at 6.77% for one year, but fees, loan-to-value bands and differing lender assumptions make the headline numbers hard to compare.
My current plan is to put every offer on the same 12-month basis: instalments, interest and all upfront or arrangement charges. I would then run a separate scenario for the reset, including a higher follow-on rate and the cost of refinancing. Is that more useful here than relying mainly on APR?
I am also comparing early-repayment conditions, portability and monthly affordability. What else should be held constant—loan amount, payment date, fee treatment or insurance assumptions—before I decide whether the short fixed period is worth the reset risk?
My current plan is to put every offer on the same 12-month basis: instalments, interest and all upfront or arrangement charges. I would then run a separate scenario for the reset, including a higher follow-on rate and the cost of refinancing. Is that more useful here than relying mainly on APR?
I am also comparing early-repayment conditions, portability and monthly affordability. What else should be held constant—loan amount, payment date, fee treatment or insurance assumptions—before I decide whether the short fixed period is worth the reset risk?