Some mortgage rates have a product fee but the amount of the fee can vary. Usually the larger the fee the lower the interest rate you will be charged. The product fee is added to the mortgage when the mortgage starts, which means you can either pay the fee off or leave it on there. If you pay it off within 30 days, no interest will be charged on the fee. If you leave it on your mortgage, then interest will be charged on it until it is paid off.
Here are some key points to take into account when weighing up rates against fees.
Is getting the lowest monthly mortgage payment your top priority? Are you happy to pay a higher fee to get a better rate? Will you be able to pay the fee off ? Or if you want to add it to the mortgage, will the amount you can borrow allow for If you choose a lower rate and pay a higher fee, do you mind that this might mean that the overall costs over the life The other option is to take a rate with no product fee. The rate will be higher but you'll avoid a product fee which you'll be charged interest on if it's added to your mortgage. Here are some key points to take into account, when looking at choosing a rate with no fee.
Are you happy to have a higher monthly mortgage payment to avoid a fee? Based on your budget would a higher payment stretch you? Do you want to avoid adding fees to your mortgage or having to pay a product fee up front? 