Comparing a 3.70% 30-year fixed mortgage quote in New York

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frame.grand

Mortgage adviser
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I would prefer the certainty of a fixed payment, but I do not want to pay heavily upfront just to make the monthly figure look attractive. One lender has quoted 3.70% fixed for 30 years on a New York purchase of around $205,000. Its fees and the applicable loan-to-value band make it less obviously competitive than the rate suggests.

APR gives one comparison, although keeping the mortgage for the full 30 years seems unlikely. Would you also calculate interest and fees over several realistic ownership periods, without assuming that refinancing will definitely be available?

I am checking the early-repayment conditions and whether portability offers anything useful in practice. Monthly affordability remains important, but I would rather assess that separately from the total cost so a smaller payment does not disguise a dearer loan.
 
One clarification: I have not settled on the right comparison period. Using all 30 years seems unrealistic if the property is sold or the loan refinanced earlier, but assuming an early refinance could make an expensive upfront fee look better than it is. Would comparing several holding periods be the fairest approach?
 
Yes—run the same quote over several plausible holding periods. For each one, compare upfront lender fees, cumulative interest and any cost of repaying or refinancing. Keep monthly affordability as a separate test. Is $205,000 the purchase price or the mortgage amount? Without the down payment, the loan-to-value comparison is still incomplete.
 
I would not make APR the sole deciding figure. It is useful for screening, but the result depends on how costs are spread across the assumed loan term. A fee-heavy offer can look reasonable over 30 years and poor if you exit much sooner. Also compare the projected remaining balance at each chosen date, especially if any fees are being added to the loan rather than paid upfront.
 
Portability deserves caution here. Before assigning it any value, ask exactly what the lender means: whether it relates to moving the existing borrowing to another property, what conditions would apply, and whether a fresh affordability or loan-to-value assessment would still be needed. For early repayment, ask for the actual charge structure rather than relying on a general description.
 
To make the decision manageable, I would build three columns for each lender: cash needed at closing, monthly payment, and estimated borrowing cost over a few realistic exit dates. Then add a note for early-repayment restrictions and portability. Since this is fixed for 30 years, the main rate risk comes from assuming you will refinance later; the replacement rate may not be as favorable.
 
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