Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 12-27-2011, 05:20 AM   #21
Thinks s/he gets paid by the post
Marita40's Avatar
 
Join Date: May 2011
Location: St. Paul
Posts: 1,121
Your experience with Penfed is very helpful. I filled out the online application today (very easy to do; user friendly site) and so, fingers crossed, it is now a wait-and-see. All my calculations show that I will save about $4500-$5000. with this route, shaving @ 4 months off my mortgage payoff. That's good enough for me!
__________________

__________________
Marita40 is online now   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 12-27-2011, 10:49 AM   #22
Thinks s/he gets paid by the post
 
Join Date: Mar 2010
Posts: 1,649
Quote:
Originally Posted by Marita40 View Post
Brewer, I am seriously considering the 2.99% 5 year Penfed home equity loan. As you state with such a low rate and no closing costs there's nothing that beats this for my situation. I've always had a traditional mortgage so I'm just a bit concerned with going this route. Does anyone see any problem at all with taking this home equity loan to pay off the balance of my mortgage? By paying more on the Penfed principal each month my calculations state that I can now shave 1/2 year off my current mortgage payments--ie. be done with the whole thing in 3 1/2 years. Any thoughts from the experts here?
I think this is a good idea. I did it back when they were giving money away and got an equity line for Prime minus 1 point. My interest rate is currently 2.25% with about a $36K balance. It's been this low for about 2 or 3 years now. Just keep in mind when or if interest rates go up, these rates may also float up as equity lines follow the Fed Funds rate. But mine is an "equity line". Not sure if your rate can go up with an "equity loan", but I'd ask the question.
I plan on having this "paid off" in 2 years....but I don't want it totally paid off as I want to keep the line open. It's a $300K source of money if I want it ..without having to mess with the banks again.

Doesn't hurt to keep some available credit money around....so you might consider getting an amount as high as you can. You will only be charged for the balance that is on it. But again, this might be the difference between an equity loan and an equity line.
__________________

__________________
sheehs1 is offline   Reply With Quote
Old 12-30-2011, 04:55 PM   #23
Thinks s/he gets paid by the post
Marita40's Avatar
 
Join Date: May 2011
Location: St. Paul
Posts: 1,121
My heartfelt thanks to brewer12345! It took two days--two days!--for Penfed to approve the 2.99% home equity loan. I'm now in the process of completing the simple paper work and move to closing. brewer, you saved me from swimming in the murky lake of refinancing (especially the incredibly boring job of running around comparing interest rates, etc). This turned out to be an excellent option and a very simple process. I really appreciate your help!
__________________
Marita40 is online now   Reply With Quote
Old 12-30-2011, 05:08 PM   #24
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
My pleasure. I have had two mortgages, a car loan, a credit card and multiple CDs with Pen Fed and never had cause for complaint. Glad they could help you.
__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Old 12-30-2011, 05:12 PM   #25
Full time employment: Posting here.
tightasadrum's Avatar
 
Join Date: Aug 2006
Location: athens
Posts: 802
Inspired by this thread I called PenFed. It turns out that even though I am not their target client base, I can join by simply joining a volunteer organization that they suggest. I intend to join on Monday, and I'll look into a refinancing plan soon after. By using the ARM 5/5 they offer interest rates as low as about 2.5% with no closing cost, if I understood correctly! If I can pull this off, I'll be able to pay off two rental mortgages ten years early at almost the same monthly cost. No brainier, on steroids. I have my fingers crossed on this one. The only catch may be my earned income. It's been a problem before. Banks don't trust rental income to be real income apparently. Funny though, it spends almost exactly like wage income.
__________________
Can't you see yourself in the nursing home saying, " Darn! Wish I'd spent more time at the office instead of wasting time with family and friends."
tightasadrum is offline   Reply With Quote
Old 12-30-2011, 05:46 PM   #26
Thinks s/he gets paid by the post
Marita40's Avatar
 
Join Date: May 2011
Location: St. Paul
Posts: 1,121
To join I gave my brother's name: he's an ex ROTC. As I recall they simply ask whether any friend or family member served in the military. Also, to answer an earlier question on this thread, the application did ask whether I was going to pay off a mortgage with the loan, and I suspect that this fact did help speed the process.
__________________
Marita40 is online now   Reply With Quote
Old 12-30-2011, 06:01 PM   #27
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
clifp's Avatar
 
Join Date: Oct 2006
Posts: 7,451
Quote:
Originally Posted by Marita40 View Post
My heartfelt thanks to brewer12345! It took two days--two days!--for Penfed to approve the 2.99% home equity loan. I'm now in the process of completing the simple paper work and move to closing. brewer, you saved me from swimming in the murky lake of refinancing (especially the incredibly boring job of running around comparing interest rates, etc). This turned out to be an excellent option and a very simple process. I really appreciate your help!
Approval is quick for many companies, what sets Penfed apart is how fast and straightforward the closing process is. I wish credit unions could go public cause I'd definitely buy their stock.
__________________
clifp is offline   Reply With Quote
Old 12-30-2011, 06:45 PM   #28
Recycles dryer sheets
Beryl's Avatar
 
Join Date: Jun 2007
Posts: 413
Quote:
Originally Posted by Marita40
Your experience with Penfed is very helpful. I filled out the online application today (very easy to do; user friendly site) and so, fingers crossed, it is now a wait-and-see. All my calculations show that I will save about $4500-$5000. with this route, shaving @ 4 months off my mortgage payoff. That's good enough for me!
Congrats!

I paid off my home 6/2010 and it is a exhilarating feeling to this day. I find no better feeling that to be completely debt-free. Those few years will go quickly and who knows -- maybe you'll pay down the principle sooner.
__________________

__________________
Retired - Class of 2011
Beryl is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Hi...Trying to decide whether or not to refinance lostgator Hi, I am... 36 12-08-2014 06:36 AM
Another HSA question - order of contributions question NYCO FIRE and Money 4 11-14-2011 08:49 PM
Refinance rules change for some underwater mortgages MichaelB FIRE and Money 89 10-31-2011 11:13 AM
Question re: best way to invest "extra cash" Lisa99 FIRE and Money 21 08-10-2011 03:25 PM

 

 
All times are GMT -6. The time now is 02:48 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.