How should I compare an 8.02% 15-year fixed mortgage quote in Seoul?

[lookTheRiver]

I need to choose how to compare the offers before progressing with a Seoul purchase of about ₩607,200,000. One lender is quoting 8.02% fixed for 15 years. Its headline figure seemed competitive, but the applicable loan-to-value band and setup charges make the real cost less obvious.

Should I compare the loans over the period I am likely to keep them, using interest, fees and any early-repayment cost, or is APR still the better starting point? I also need to understand how the 15-year structure affects the monthly payment and whether portability would have practical value if I moved. What figures should I request from each lender to put the quotes on the same basis?

 

[measureTheEmber]

You have identified the fees and loan-to-value band, but the likely holding period is still unclear. I would run each quote to several plausible exit dates and add the interest, upfront charges and repayment cost at each one. APR is useful for narrowing the field, not necessarily for choosing the cheapest loan for your own timeline.

Next, ask the lender to confirm the loan amount behind the 8.02% quote and provide an amortization schedule. That will also show whether the monthly payment is manageable and how much principal would remain at each exit date.

 

[creek.local]

Before focusing on portability, confirm whether “15 years fixed” is also the full repayment term or merely the fixed-rate period within a longer loan. That changes both the monthly payment and any rate-reset risk. I’d also ask for an amortization schedule, because two loans with the same headline rate can reduce principal at very different speeds if their structures differ.

 

[lookTheRiver]

The holding period is the missing piece for me. I may not keep this exact property or mortgage for the full 15 years, so a full-term interest comparison could overstate the importance of later savings and understate early fees. I’m going back to the lenders for itemised fees, amortization schedules and the cost of repayment at several possible exit dates. I’ll also clarify whether the fixed period and repayment term are identical.

 

[small_quill]

I slightly disagree that APR should only be a shortlist tool: it is still a useful consistency test if every lender calculates the disclosed figure on the same basis. But Nina is right that it cannot answer a five-year-versus-15-year decision by itself.

A simple spreadsheet could compare each offer at several holding dates. Track cash paid, principal remaining, fees, and any early-repayment amount. Keep portability separate rather than assigning it a value unless you know the conditions under which the lender would allow it.

 

[creek.local]

Also run an affordability case without assuming refinancing will rescue the deal. Use the quoted payment first, then test what happens if refinancing is unavailable or unattractive when you want to exit. If the 15-year fix ends before the loan does, include a higher post-reset payment scenario; if it is fully repaid in 15 years, the bigger issue is whether that payment is comfortable from the start.