Comparing a 6.61% 10-year fixed mortgage quote in Seoul

B

bikesAndEcho

Homeowner
Established
The fees changed my view of the quote. I was offered 6.61% with a 10-year fixed period on a Seoul purchase of about ₩986,700,000, and the lower advertised figure did not reflect the LTV tier that would apply to the application.

I still need to pin down the actual loan amount and amortization term, but I want a comparison that also captures monthly affordability, upfront charges, early repayment and portability. If I expect to exit before year 10, should I focus on the cost and remaining balance at that date? If I may keep the loan beyond the fixed period, how should I build the rate-reset risk into the decision?
 
A single headline measure will not settle this. The main concern is matching the calculation to how long the borrower is likely to keep the mortgage.

For an early sale or repayment, add the fees and any exit charge to the payments made, then show the outstanding balance on that date. If the plan is to stay for all 10 fixed years, compare the monthly burden, cumulative interest and balance at year 10, followed by a stressed post-fix payment. APR is still useful for screening quotes, but those two branches are more likely to reveal the practical difference.
 
Do you know the actual loan amount and amortization term, rather than just the purchase price? The LTV tier cannot be compared properly without those. I’d also ask whether the arrangement fees are paid upfront or added to the balance, and what happens to the rate after year 10. Are you expecting to sell, repay or refinance before then?
 
Once the lender supplies the loan amount and full amortization schedule, one question remains: is refinancing merely an option, or does the deal depend on it? I would treat it as an optional route because future rates and eligibility cannot be known now.

Run an early-exit case, a case covering the entire 10-year fixed period, and another that continues after the reset at a less comfortable rate. Portability also needs written clarification. If a move triggers a fresh affordability review or a new LTV assessment, it may not provide the flexibility the label suggests.
 
Thanks—using one comparison period was the piece I was missing. I’ll request figures for the same loan amount and amortization schedule, with fees shown both upfront and, if offered, added to the balance. I’ll compare an early exit against the full 10 years and include the post-fix payment risk rather than assuming refinancing will be available. I’ll also ask for the early-repayment and portability conditions in writing before deciding.
 
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