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Help, I'm doing refi with Penfed right now
Old 08-06-2010, 06:33 PM   #1
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Help, I'm doing refi with Penfed right now

I'm about half way thru the online application and got an fee estimate as below:

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Estimated Settlement Charges
Pentagon Federal Credit Union's origination charge $1,225.00
Your credit for this interest rate ($65.00)
Required services we select $469.33
Appraisal Fee $400.00
Credit Report $7.33
Flood Certification Fee $7.00
Tax Service Fee $55.00
Title services and lender's title insurance $1,165.60
Government recording charges $84.00
Initial escrow deposit $2,349.97
Daily interest charges $49.94
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excluding the escrow deposit of $2,349.97 and daily interest charge, the total comes to around $2900 or so. this seems kind of high, doesn't it ? I read great reviews of it here and I thought they could do better than that. is lender's title insurance required?

this is for a 15 yr, $115k loan @ 3.875%

also, if I submit the app w/o locking, am I obligated to anything or fees?

my current lender is provident funding, their online quotes is around $1300 , too good to be true ? I used a broker for my last refi and have never dealt with them except my monthly auto payment. anyone had experience with them. btw, I backed away from amerisave after reading too many negative reviews of them.
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Old 08-06-2010, 06:47 PM   #2
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I've never refinanced with penfed but have taken out several HEL's. They paid all the fees and didn't charge for a home appraisal.

When I've refinanced with a bank, the closing costs have always left me ill. I hate anything and everything to do with real estate!

Amethyst
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Old 08-06-2010, 07:48 PM   #3
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Pen Fed has a 1% origination fee for fixed rate mortgages, so you can't get out of that if you want 15 year fixed. If you take the 3.875 5 year ARM you can avoid that fee. You can take a 15yr HEL at 5.99 for no fees. Since your loan amount is so small you should run the numbers to see what the real interest savings are. It might be better to do one of the other options.

Also, don't double count the required fees - they are the same as the appraisal fee, etc.

The lender requires title insurance, so you can't get out of that. They want the protection. Some lenders will allow you do bring your previous policy up to date for a cheaper amount. Don't know if Pen Fed allows this. I believe it is called a reissue.
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Old 08-06-2010, 08:03 PM   #4
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Also, don't double count the required fees - they are the same as the appraisal fee, etc.
.
understood. I didn't double count them. I had indented those numbers that make up the third party fees in my reply, they just didn't show up in the view page. problem with the html.

what's the difference bwtn a 5/5 Year Adjustable Rate - Conforming and a 5 Year Adjustable Rate - 30 Year Amortization
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Old 08-07-2010, 04:49 AM   #5
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Originally Posted by ER_Hopeful View Post
understood. I didn't double count them. I had indented those numbers that make up the third party fees in my reply, they just didn't show up in the view page. problem with the html.

what's the difference bwtn a 5/5 Year Adjustable Rate - Conforming and a 5 Year Adjustable Rate - 30 Year Amortization
With the latter, your rate is fixed for 5 ears and then adjusts every 1 year after that. IN a galloping rate environment, the rate cpuld climb real far, real fast. With the 5/5, your rate is fixed for 5 years and then adjusts once every 5 years. Due to the limits on how far the rate can move at each adjustment, you have a lot less interest rate/payment ruisk with the 5/5/ Spreadsheet it out and see. I chose to refi my 8 years left 15 year fixed loan to a 5/5 to get lower costs with negligible interest rate risk vs, the 15 year fixed.
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