J
jodyanne
Guest
I would really appreciate any thoughts on this, even if it's just to clarify what we need to consider.
We are currently in a fixed 5.45% with AIB until end Sep 2011. We would like to re-fix for another 3 or 5 years at that stage as we like the security but given all the issues with fixed rates recently, we're worried that there won't be a reasonable fixed rate with AIB come September.
So we're considering paying the breakage cost to come out of this fixed rate and immediately re-fixing at their current fixed rates (3.89% for 3yr and 4.39% for 5 year). And we're trying to figure out if it's worth it for us!
Cost to break out: 2,404.98
Rough monthly savings between now and September on our monthly repayments: about 600 if we opt for 5yr and about 1000 if we opt for 3yr
So net cost to us for the security of re-fixing now: Between 1,400 and 1,800
What do you think? We could cover the breakage with savings but is it worth it? How can I figure out if this would leave us better or worse off?
Would really appreciate any thoughts, thank you!
We are currently in a fixed 5.45% with AIB until end Sep 2011. We would like to re-fix for another 3 or 5 years at that stage as we like the security but given all the issues with fixed rates recently, we're worried that there won't be a reasonable fixed rate with AIB come September.
So we're considering paying the breakage cost to come out of this fixed rate and immediately re-fixing at their current fixed rates (3.89% for 3yr and 4.39% for 5 year). And we're trying to figure out if it's worth it for us!
Cost to break out: 2,404.98
Rough monthly savings between now and September on our monthly repayments: about 600 if we opt for 5yr and about 1000 if we opt for 3yr
So net cost to us for the security of re-fixing now: Between 1,400 and 1,800
What do you think? We could cover the breakage with savings but is it worth it? How can I figure out if this would leave us better or worse off?
Would really appreciate any thoughts, thank you!