Comparing mortgages just during initial period
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marcosscriven
Posts: 81 Forumite
Any mortgage cost comparison I can find shows you the initial monthly rate and payment, the fees, and the APR over the whole life of the mortgage.
What this never seems to do though is give you a simple guide of the cost only during the initial period (I.e. interest + fees). Although it's a simple calculation, it does make a simple 'sort by initial monthly payment' not give you the cheapest overall for that period.
Sorting by APR doesn't help either, as if you intend to look for another deal, it doesn't matter what the rate reverts to.
Are there any online comparisons on this basis, or is it just a case of working it out manually
What this never seems to do though is give you a simple guide of the cost only during the initial period (I.e. interest + fees). Although it's a simple calculation, it does make a simple 'sort by initial monthly payment' not give you the cheapest overall for that period.
Sorting by APR doesn't help either, as if you intend to look for another deal, it doesn't matter what the rate reverts to.
Are there any online comparisons on this basis, or is it just a case of working it out manually
0
Comments
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APR is meaningless for mortgages.
MSE tries to get close but mess it up as they count the total payments with the fees added to the loan.
Best to just do it yourself as it is not hard.
simplest approach for same debt same full term is add the fees, make the payments the same and see what's left at some point in the future like the end of a fix.
lowest remaining debt for the same cash out of pocket.0
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