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!
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
