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Which discounted interest rate is better?

Don't get caught out by a loan with an initial interest rate that lasts a shorter time than other discounted rates or which has a higher normal interest rate after the discount period.

You need to think carefully about your own time horizon for the loan you are seeking. What may look like a better deal up-front may cost you more in accumulated interest payments in the long-term. This calculator will show you that cost savings will differ depending on how long you have the loan in place.

For more information on this topic, try the article links below:

• What are Break Costs (or Early Repayment Fees)?
• What is refinancing and why would I do this?