Lender Question

[Allerian1004]

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So, I'm trying to choose between Anchorbank and Chase. I'm looking at 180,000 in loans.
Anchorbank:
2% reduction in interest after 48 payments
Chase:
1% reduction in interest rate
Which reduces the amount of interest I'm paying more? I tried to do calculations but think I did them wrong!

 

[mooredge]

You need to be careful with those interest rate reduction claims, because they are generally subject to change. I would personally look for a lender that first offers zero fees, then choose by interest rate reduction second.

In answer to your question.

$100,000 @ 5.8% interest w/10 year payment plan = $132,022

$100,000 @ 6.8% for 48 months with 2% reduction after = $132,818