Mortgage Rate - move now or sit and wait?

[Pearl]

Currently on fixed 2.8% until April 2012.

Wondering if I should move to fixed for 5 yrs at 4.39%?

Would be great to have a formula to work out the difference, but that formula would depend on knowledge of the variable rate in April 2012 - and any subsequent hikes!

Bank of Ireland has a 5 yr fixed rate of 4%.

Is switching your mortgage from AIB to B.O.I. still doable?

Thanks!
Pearl

 

[NorfBank]

Bank of Ireland has a 5 yr fixed rate of 4%.

The APR of the Bank of Ireland 5 year fixed is 4%. They do not publish their actual nominal rate for the 5 years but it will be a lot higher than 4%.

The APR on the AIB fixed rate is 3.85% while the rate itself is 4.39% for the 5 years.

Be sure to compare like with like.

[broken link removed]

 

[Pearl]

Thanks for pointing that out, NorfBank.

I got this quote from searching:

"The short answer is that you should ignore the nominal rate and only compare loans based on their quoted APRs (or cost per thousand based on comparable criteria - e.g. term)."

So if I am using Karl's Mortgage Calculator to predict my payments, I should use the APR rate?

Is there a difference between the "APR Annuity" and "APR over 20 yrs" - or are they directly comparable - making AIB the better option?

Thanks in advance,
Pearl

 

[Pearl]

Let me correct that - when using the calculator, I should use the nominal rate. Your point is that BOI don't publish their nominal rate - right?

Okay, I think I get it - thanks.

 

[irishlinks]

That BOI 5 yr fixed rate is 4.64
see http://www.*****************.com/mortgages/5-year-fixed-rates

When comparing 2 fixed rates - APRs are pretty meaningless because they assume the variable rate will be the lenders current standard rate after the fixed rate ends.