Comparing a 7.73% 10-year fixed quote on a $655,000 purchase

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The 7.73% fixed rate for 10 years is only part of the cost. My concern is that the fees attached to the quote may outweigh the rate advantage on a New York purchase of about $655,000.

I’m building a side-by-side comparison that includes monthly payments, upfront or financed arrangement fees, overpayment limits and the balance left after year 10. Should APR be treated mainly as a first screen, with the real choice based on how long I expect to keep the loan?

Portability also sounds useful, but I’m unsure how much weight to give it if a future property or loan-to-value band might not qualify. I also want to test the rate reset rather than rely on refinancing being available.
 
I’d use APR only as an initial filter, then compare cash flows over the period you realistically expect to keep the loan. Include upfront lender fees, interest, and any interest charged on a financed fee, while keeping principal repayment separate from the true cost. Also compare the remaining loan balance at the end of each scenario. A cheaper-looking rate can lose once the fee is spread over a short holding period.
 
Before choosing a metric, what exactly happens after the tenth year? Also, are both quotes based on the same loan amount and LTV tier, and is the large fee paid upfront or added to the loan? Those details could reverse the result. I’d ask for the portability and early-repayment conditions in writing rather than assigning them much value from a headline description.
 
That’s the gap in my comparison. I was leaning too heavily on APR without testing an earlier sale or refinance. I’m now asking both lenders for matching illustrations using the same loan amount and LTV, with the fee shown both upfront and financed where available. I’ll also model keeping the loan for the full 10 years and ask them to spell out the rate-reset position after that.
 
I wouldn’t pay a large fee merely for flexible overpayments unless you have a realistic plan to use them. Calculate how much extra interest those overpayments could actually avoid, then compare that with the added fee. Separately, test whether the required monthly payment at 7.73% leaves enough room for other ownership costs. Portability may be useful, but it shouldn’t rescue a quote that is otherwise unaffordable or expensive.
 
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