In our article on mortgage comparison rates we showed what happens when you change the loan amounts or term on two loans with identical, advertised comparison rates. One percent seems quite small, so one tenth, one hundredth of one percent probably sounds irrelevant. But here’s what really happens:
A small difference in your interest rate can make a big difference in the actual cost of your loan, which is why comparing rate to rate can be tricky.
Look after the pennies and the dollars will look after themselves.
J. Paul Getty
Other factors
Higher interest rates nibble your lifestyle, every day.
Whenever you compare two interest rates, the higher rate means you must make higher repayments, which means you have less money to either pay your loan out faster or live the way you want.
