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I missed the PenFed firesale.....
Old 01-29-2008, 09:43 AM   #1
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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?
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Old 01-29-2008, 09:54 AM   #2
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Any crystal balls out there?
Nope. Mine aren't.
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Old 01-29-2008, 09:59 AM   #3
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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.
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Old 01-29-2008, 10:04 AM   #4
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Nope. Mine aren't.




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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........
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Old 01-29-2008, 11:12 AM   #5
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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!
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Old 01-29-2008, 11:16 AM   #6
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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.
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Old 01-29-2008, 11:46 AM   #7
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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.
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Old 01-29-2008, 12:11 PM   #8
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It looks like 10 year bond rates dropped a little bit today. Has anyone checked Pen Fed to see if mortgage rates changed?
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Old 01-29-2008, 12:17 PM   #9
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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
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Old 01-29-2008, 12:34 PM   #10
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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!
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Old 01-29-2008, 01:02 PM   #11
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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.
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Old 01-29-2008, 01:14 PM   #12
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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.
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Old 01-29-2008, 03:14 PM   #13
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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
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Old 01-29-2008, 03:39 PM   #14
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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.

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Old 01-31-2008, 11:09 AM   #15
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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.
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Old 01-31-2008, 11:11 AM   #16
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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.
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Old 01-31-2008, 11:53 AM   #17
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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.
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