Second opinion on 3.35% 30-year mortgage quote in New York

[mina_details]

I’m 82 days into arranging financing for a New York property purchase of around $740,000. The current quote is 3.35% fixed for 30 years. A lower advertised rate caught my eye, but once arrangement fees and the applicable loan-to-value tier were included, the monthly difference became fairly small.

Would you compare these offers primarily by APR, interest over the period you expect to keep the mortgage, or total cash cost including fees? Flexibility may matter more here, so I’m also looking at portability and early-repayment terms rather than assuming I will refinance.

 

[OrlaIves]

APR is a useful first filter, but I would compare total cost over the number of years you realistically expect to keep the loan. Include upfront lender fees, monthly interest and any cost attached to repaying or refinancing. The purchase price alone is not enough to judge the LTV tier: what loan amount and down payment are you considering, and how long might you keep the property?

 

[xavi_flint]

I’d be cautious about optimizing around an expected refinance date. Plans change, and a future refinance may not be attractive or available. Since this is quoted as fixed for the full 30 years, I would first ask whether the payment is comfortably affordable without refinancing. Then get the portability and early-repayment wording clarified; those terms could outweigh a tiny monthly saving.

 

[rowan.keel]

Build three comparisons—perhaps keeping the loan for 5, 10 and 30 years—and use the same loan amount in each. Add fees and interest, but keep principal repayment separate because it reduces the balance rather than simply disappearing as a cost. Also compare the remaining balance at each date. That should expose whether the advertised rate only wins under a particular refinance assumption, while still letting you value the more flexible terms.