New York mortgage quote: 2.91% fixed for 2 years on a $1.32m purchase

[inez.keel]

I have a 2.91% quote with the rate fixed for 2 years on a New York property purchase around $1,320,000. The advertised rate was lower, but the arrangement fees and our loan-to-value tier changed the real comparison.

Which figure would you prioritize when comparing lenders: APR, interest paid during those 2 years, or total cash cost including fees? We may move before the fixed period ends, so I’m also looking closely at early-repayment terms and whether the mortgage is genuinely portable.

 

[direct_map]

Given the possible move, I would compare total cost to your likely sale date rather than relying on APR alone. Add lender fees, interest and any early-repayment charge, but keep principal repayment separate because it reduces the balance you owe. Run the calculation at 12, 18 and 24 months if your timing is uncertain.

 

[esme.snow]

Is this a loan that becomes adjustable after two years, or does something else happen at the end of the fixed period? Also, what are the proposed loan amount and down payment? Without the actual loan-to-value and a breakdown of fees, the 2.91% figure is difficult to compare with the advertised offer.

 

[teaAndCairn]

I wouldn’t use total interest by itself. Two offers can produce different interest totals because of differences in loan amount or repayment structure, not just price. Compare the same borrowing amount and expected holding period, then look at upfront cash, monthly payment, remaining balance and any exit cost side by side.

 

[aisha.fable]

Portability deserves more scrutiny here. Ask what the lender means by that term: whether the existing rate can move to another property, whether you must qualify again, and what happens if the new purchase is more or less expensive. A feature that is conditional may not help much if the move and sale do not line up neatly.

 

[frame.grand]

The monthly payment still matters even if another offer is marginally cheaper over two years. I’d first eliminate any option that makes the budget uncomfortable, then compare costs among the affordable ones. Leave room for property expenses and for a potentially higher payment after the fixed period rather than assuming refinancing will solve it.

 

[GoodSignal]

Ask for the exact post-fixed-period terms too: how the new rate is determined, when it can first change and any limits on changes. That may not matter if you definitely sell within two years, but your wording suggests the timing is uncertain. Rate-reset risk belongs in the comparison alongside the fees.

 

[anika_vale]

The practical problem is that the moving date is uncertain, so I would not build the comparison around an on-time sale. A quote that looks best if you exit just before the two-year fix ends may be poor value if the sale slips and the rate resets.

I’d price three cases: selling during the fixed period, retaining the mortgage afterward, and refinancing at expiry. The last case should include fresh fees and any effect of the later loan-to-value, not an assumed cost-free switch. Give the planned move the most weight, but reject any option whose monthly payment becomes unaffordable if that plan is delayed.

 

[countTheGate]

A simple spreadsheet should make the trade-off visible. Give each lender columns for cash due upfront, monthly payment, cumulative interest, remaining balance and exit charges at several dates. Add a separate note for portability conditions and the rate-reset formula. APR can remain a reference point, but it should not override the scenario that matches your plans.

 

[frame.grand]

Jack’s caution is fair, although I’d still give the planned move more weight than a long holding period. The useful question is how expensive it becomes if the plan changes. If one quote wins at 18 months but becomes much worse at 30 months, that fragility is worth knowing before choosing it.

 

[frame.grand]

One other distinction: separate lender-specific charges from purchase expenses that would be broadly similar whichever loan you choose. Otherwise the mortgage comparison can be distorted. And confirm whether the quoted fees are paid in cash or added to the loan, because adding them changes both the balance and subsequent interest.

 

[anika_vale]

Agreed. I’d ask each lender to price the same loan amount and loan-to-value tier, with fees shown the same way, then request the cost of exiting at 12, 18 and 24 months. That should expose whether the lower advertised rate was actually valuable or simply paired with costs that do not work for a short holding period.