Mortgage quote in New York: 2.98% fixed for 3 years on a $915,000 purchase

[AdaBrooks]

Before committing to this loan, I need to compare what it costs through the end of the three-year fixed period rather than being led by the headline rate. The quote is 2.98% on a New York purchase of roughly $915,000, but the available loan-to-value tier and fee structure make it less straightforward than the advertisement suggested.

My current plan is to total the monthly payments and all lender charges through month 36, then compare the remaining balance under each option. I also need the written terms for extra payments, an early exit and moving the loan to another property. Is that a better basis than APR if refinancing after three years is only a possibility rather than a firm plan?

 

[nia_sage]

For a three-year decision, I would compare total cash outflow through month 36, plus the remaining loan balance at that point. APR is useful for an initial comparison, but it may not reflect your actual timeline if you refinance, sell or repay early. Include every lender fee and note whether each fee is paid upfront or added to the loan.

 

[PrimeField]

What loan-to-value are you being quoted, and is the arrangement fee the same at each tier? Those details could explain why the headline rate is not available to you. I’d also ask what “portability” means in the lender’s written terms—whether the existing rate actually transfers, or whether a move requires a fresh affordability and property assessment.

 

[nia_sage]

Loan-to-value is important, but I wouldn’t dismiss APR entirely. If the loan amount and term are identical, it is a good way to expose a low rate paired with heavy upfront charges. I’d use it to narrow the options, then calculate the three-year cash cost for the finalists. That avoids choosing solely on either the headline rate or a long-term measure.

 

[CandidCorner]

The main caveat is the refinance assumption. A plan that works only if cheaper financing is available in three years carries obvious rate-reset risk. Run the payment after the fixed period under less favorable rates and see whether it remains manageable. Also compare any early-repayment charge against the chance that you sell or refinance before month 36.

 

[AshaWade]

A simple comparison sheet should settle most of this. Give each quote columns for loan amount, loan-to-value, fixed monthly payment, upfront fees, financed fees, total payments over 36 months, remaining balance, early-repayment terms, reset method and portability conditions. Keep the property price and down payment consistent across every quote. Then compare both the three-year cost and the payment you could face if refinancing is unavailable.