New York purchase: comparing a 5.27% two-year fixed quote and fees

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I’m comparing financing for a New York property priced around $385,000. One quote is 5.27% fixed for two years. The headline looked attractive, but arrangement fees and the loan-to-value tier may make it more expensive overall.

For a fair lender comparison, would you prioritize APR, interest paid over those two years, or total cash cost including fees? I’m also looking at monthly affordability, early-repayment terms and whether “portability” would actually help if I moved.
 
I’d compare them over the two-year period you expect to keep this deal: upfront fees, 24 monthly payments, and the remaining loan balance at the end. APR is useful, but it may not reflect your actual time horizon. Also clarify what happens after month 24—is there a rate reset, a required refinance, or something else?
 
The remaining balance is the piece I wasn’t giving enough weight. I’ll put each quote into the same 24-month comparison rather than looking only at payments. I also need the lenders to define the post-two-year terms clearly. Would you count a fee added to the loan as an upfront cost plus the interest charged on it?
 
Yes, economically it is still a cost, and financing it can add interest. But I wouldn’t automatically choose the lowest 24-month total. If refinancing after two years is only an assumption, the rate-reset risk matters. A slightly dearer option could be preferable if its later terms are less exposed or its early-repayment conditions are more flexible.
 
One more thing: run the comparison at the same loan amount and loan-to-value tier. Otherwise you may be comparing a lower rate available with a larger down payment against a higher rate requiring less cash. Keep down payment, lender fees, monthly payments and projected balance in separate columns so that trade-off remains visible.
 
I’d add two stress tests: staying beyond two years without refinancing, and selling during the fixed period. Ask for the payment after any reset, how early repayment is treated, and precisely what portability means in this offer. Then compare both the total two-year cost and the highest monthly payment you could realistically absorb. Cheapest on paper is not necessarily safest for cash flow.
 
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