I missed the PenFed firesale.....

cardude · 01-29-2008, 08:43 AM

I didn't pull the trigger on the 15 yr, 4.75% rate last week due to my normal hand-wringing, and now I'm wondering if/when it will get back down that far again.

Any crystal balls out there?

Why did the rates shoot back up to 5.5% so quickly? Did they just get too many applications and didn't need any more business maybe?

REWahoo · 01-29-2008, 08:54 AM

Quote:

Originally Posted by cardude

Any crystal balls out there?

Nope. Mine aren't.

brewer12345 · 01-29-2008, 08:59 AM

Watch the bond market carefully, especially 10 year treasury rates. When Pen Fed was offering those rates, bond yields moved very sharply lower when the pucker factor went to infinity amid the global equity sell-off. When the markets rebounded, bond yields shot back up, and mortgage rates followed. If you see bond yields drop again, you can expect to see a cheap deal on mortgages again.

cardude · 01-29-2008, 09:04 AM

Quote:

Nope. Mine aren't.

Quote:

Watch the bond market carefully, especially 10 year treasury rates. When Pen Fed was offering those rates, bond yields moved very sharply lower when the pucker factor went to infinity amid the global equity sell-off. When the markets rebounded, bond yields shot back up, and mortgage rates followed. If you see bond yields drop again, you can expect to see a cheap deal on mortgages again.

OK. Thanks for the tip. I've never refinanced, so I'm without a clue........

rando348 · 01-29-2008, 10:12 AM

So I'm going to be watching the Pen Fed rates to jump at the next oppertunity. Should I join beforehand? Also I was kind of looking at their website and I don't meet any of their requirments except for one where I can join if I give them a donation.

Everyone that is using Pen Fed are you in the military or did you also give a donation.

Thanks!

REWahoo · 01-29-2008, 10:16 AM

I'd vote yes to joining now. You'll have to pony up the $20 donation and put $5 ($10?) in a savings account, but that will let you pull the trigger quickly should rates drop again. Probably money well spent...and they offer some other good deals from time to time, like much better than average CD rates.

burch64 · 01-29-2008, 10:46 AM

If you join and put $5 to open an account don't use your credit card for the $5.

My credit card (Chase) called the $5 a "cash advance" and charged me an additional $10 transaction fee.

I assumed the $5 would be treated as a purchase, but it was not.

Gworker · 01-29-2008, 11:11 AM

It looks like 10 year bond rates dropped a little bit today. Has anyone checked Pen Fed to see if mortgage rates changed?

JohnDoe · 01-29-2008, 11:17 AM

You want bond prices to go up, so the yield goes down. Prices have gone down pretty good so far today.

Pen Fed 15yr 0 pts is 5.125

rando348 · 01-29-2008, 11:34 AM

Thanks for the help so far. I'll go ahead and join soon.

For anyone that has already refinanced with Pen Fed how much were the closing costs end up being? I need to refinance my current loan which I owe 285K.

Thanks all!

JohnDoe · 01-29-2008, 12:02 PM

You need to go to the web site and enter you mortgage scenario.

Also, it's been mentioned on here about Navy Fed. They are offering 4.625 on a 15yr 0 pts. I think membership is pretty much restricted to military peeps, though.

FUEGO · 01-29-2008, 12:14 PM

Quote:

Originally Posted by JohnDoe

Also, it's been mentioned on here about Navy Fed. They are offering 4.625 on a 15yr 0 pts. I think membership is pretty much restricted to military peeps, though.

I just checked and the 4.625 rate for the 15 yr mtg has a 0.75% origination fee (but no discount points). Or you can have the origination fee waived for a .25% increase in interest rate. Not sure if NavyFed pays all closing costs like penfed.

CCdaCE · 01-29-2008, 02:14 PM

Quote:

Originally Posted by rando348

Thanks for the help so far. I'll go ahead and join soon.

For anyone that has already refinanced with Pen Fed how much were the closing costs end up being? I need to refinance my current loan which I owe 285K.

Thanks all!

We talked about closing costs quite a bit in this thread.

-CC

SecondCor521 · 01-29-2008, 02:39 PM

FYI, PenFed has a ratewatch tool where they'll email you when rates hit a target you set. I haven't successfully used it, though, so I don't know if it's something you could rely on to watch for you.

I always shop around for mortgages, but almost always end up back with PenFed or USAA.

2Cor521

JohnDoe · 01-31-2008, 10:09 AM

I'm considering doing the Penfed refi today. 15yr .875 points at 4.75.

I'll get money money back 2-1 on the point paid over the term.

brewer12345 · 01-31-2008, 10:11 AM

Quote:

Originally Posted by JohnDoe

I'm considering doing the Penfed refi today. 15yr .875 points at 4.75.

I'll get money money back 2-1 on the point paid over the term.

Over the 15 year term? Sounds like an iffy proposition to me.

JohnDoe · 01-31-2008, 10:53 AM

I'll have it paid off in under 11 yrs.

With my calculations, and paying what I'm paying now per month, I would save $1000 per 1/8 point decrease in my interest rate. My current rate it 6.5 (30 years).

So I pay $1023 for .875 points and decrease my rate by 2/8. Net savings over 11 years is about $1000.

Plus, if for some reason, I couldn't keep paying extra per month like I'm doing now, I would save a lot more with a quarter point rate reduction.

01-29-2008, 08:43 AM	#1
cardude Recycles dryer sheets Join Date: Feb 2006 Posts: 95	I missed the PenFed firesale..... I didn't pull the trigger on the 15 yr, 4.75% rate last week due to my normal hand-wringing, and now I'm wondering if/when it will get back down that far again. Any crystal balls out there? Why did the rates shoot back up to 5.5% so quickly? Did they just get too many applications and didn't need any more business maybe?

01-29-2008, 08:59 AM	#3
brewer12345 Give me a museum and I'll fill it. (Picasso) Give me a forum ... Join Date: Mar 2003 Posts: 9,166	Watch the bond market carefully, especially 10 year treasury rates. When Pen Fed was offering those rates, bond yields moved very sharply lower when the pucker factor went to infinity amid the global equity sell-off. When the markets rebounded, bond yields shot back up, and mortgage rates followed. If you see bond yields drop again, you can expect to see a cheap deal on mortgages again. __________________ "When caught between two evils I generally pick the one I haven't tried before." - Mae West "Diamonds...Because she will pretty much have to..."

01-29-2008, 10:16 AM	#6
REWahoo Moderator Emeritus Join Date: Jun 2002 Location: Texas Hill Country Posts: 11,073	I'd vote yes to joining now. You'll have to pony up the $20 donation and put $5 ($10?) in a savings account, but that will let you pull the trigger quickly should rates drop again. Probably money well spent...and they offer some other good deals from time to time, like much better than average CD rates. __________________ [MODERATOR EDIT]

01-29-2008, 02:39 PM	#14
SecondCor521 Thinks s/he gets paid by the post Join Date: Jun 2006 Location: Boise Posts: 1,319	FYI, PenFed has a ratewatch tool where they'll email you when rates hit a target you set. I haven't successfully used it, though, so I don't know if it's something you could rely on to watch for you. I always shop around for mortgages, but almost always end up back with PenFed or USAA. 2Cor521 __________________ "At times the world can seem an unfriendly and sinister place, but believe us when we say there is much more good in it than bad. All you have to do is look hard enough, and what might seem to be a series of unfortunate events, may in fact be the first steps of a journey." Violet Baudelaire.

Thread Tools	Search this Thread
Show Printable Version Email this Page	Search this Thread: Advanced Search
Display Modes
Linear Mode Switch to Hybrid Mode Switch to Threaded Mode

01-29-2008, 10:12 AM	#5
rando348 Confused about dryer sheets Join Date: Jan 2008 Posts: 2	So I'm going to be watching the Pen Fed rates to jump at the next oppertunity. Should I join beforehand? Also I was kind of looking at their website and I don't meet any of their requirments except for one where I can join if I give them a donation. Everyone that is using Pen Fed are you in the military or did you also give a donation. Thanks!

01-29-2008, 10:46 AM	#7
burch64 Recycles dryer sheets Join Date: Sep 2005 Posts: 54	If you join and put $5 to open an account don't use your credit card for the $5. My credit card (Chase) called the $5 a "cash advance" and charged me an additional $10 transaction fee. I assumed the $5 would be treated as a purchase, but it was not.

01-29-2008, 11:11 AM	#8
Gworker Recycles dryer sheets Join Date: Jul 2007 Posts: 86	It looks like 10 year bond rates dropped a little bit today. Has anyone checked Pen Fed to see if mortgage rates changed?

01-29-2008, 11:17 AM	#9
JohnDoe Recycles dryer sheets Join Date: Dec 2006 Posts: 260	You want bond prices to go up, so the yield goes down. Prices have gone down pretty good so far today. Pen Fed 15yr 0 pts is 5.125

01-29-2008, 11:34 AM	#10
rando348 Confused about dryer sheets Join Date: Jan 2008 Posts: 2	Thanks for the help so far. I'll go ahead and join soon. For anyone that has already refinanced with Pen Fed how much were the closing costs end up being? I need to refinance my current loan which I owe 285K. Thanks all!

01-29-2008, 12:02 PM	#11
JohnDoe Recycles dryer sheets Join Date: Dec 2006 Posts: 260	You need to go to the web site and enter you mortgage scenario. Also, it's been mentioned on here about Navy Fed. They are offering 4.625 on a 15yr 0 pts. I think membership is pretty much restricted to military peeps, though.

01-31-2008, 10:09 AM	#15
JohnDoe Recycles dryer sheets Join Date: Dec 2006 Posts: 260	I'm considering doing the Penfed refi today. 15yr .875 points at 4.75. I'll get money money back 2-1 on the point paid over the term.

01-31-2008, 10:53 AM	#17
JohnDoe Recycles dryer sheets Join Date: Dec 2006 Posts: 260	I'll have it paid off in under 11 yrs. With my calculations, and paying what I'm paying now per month, I would save $1000 per 1/8 point decrease in my interest rate. My current rate it 6.5 (30 years). So I pay $1023 for .875 points and decrease my rate by 2/8. Net savings over 11 years is about $1000. Plus, if for some reason, I couldn't keep paying extra per month like I'm doing now, I would save a lot more with a quarter point rate reduction.

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

Similar Threads
Thread	Thread Starter	Forum	Replies	Last Post
What is your opinion of PenFed?	wildcat	FIRE and Money	63	07-10-2007 11:40 AM
PenFed	qbkatran	FIRE and Money	1	01-01-2006 10:17 PM
ready at 39...have i missed anything?	ozarkjohn	Hi, I am...	43	12-16-2004 09:07 AM
Penfed Heads-up	Bob_Smith	FIRE and Money	8	02-26-2004 01:33 PM