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Mortgage rates again
Old 12-11-2008, 08:22 PM   #1
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Mortgage rates again

Pen Fed is showing some products with sub 5% rates. If you missed the last rate dip, might be worth keeping a close eye on this one: https://www.penfed.org/productsAndRa...tesListing.asp
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Old 12-11-2008, 09:26 PM   #2
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NFCU bumped up their discount pts today. Still very good rates though.
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Old 12-12-2008, 05:12 AM   #3
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NFCU bumped up their discount pts today. Still very good rates though.

DA%^$#@.......
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Old 12-14-2008, 08:29 AM   #4
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Has anyone refinanced an existing PenFed mortgage w/ PenFed? We closed on a new home this spring with them on a 30yr 5.75% but that 15 yr rate is starting to look pretty tempting.

Not sure what the closing costs would be, though, since their 'no closing cost' promo isn't valid for refinancing existing PenFed mortgages....
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Old 12-14-2008, 06:47 PM   #5
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Plug in your stats on their web page to get a good faith estimate.

I just refi'd my 30yr @ 6.5 to a 15yr @ 4.5.
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Old 12-14-2008, 07:11 PM   #6
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Plug in your stats on their web page to get a good faith estimate.

I just refi'd my 30yr @ 6.5 to a 15yr @ 4.5.
Is this a Penfed 15 yr fixed conforming loan? The lowest rate on their page now is 4.625 with 0.625 points paid. How did you get 4.5? How many points? Thanks.
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Old 12-14-2008, 08:49 PM   #7
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Yes, 15 yr conforming. I did it wed or thur...the day they dropped a qtr pt.

I went with 4.5 .875 pts

I think it was

4.75 0
4.625 .375
4.5 .875

after that the points jumped big time. 4.125 was 3.5
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Old 12-14-2008, 09:56 PM   #8
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Yes, 15 yr conforming. I did it wed or thur...the day they dropped a qtr pt.

I went with 4.5 .875 pts

I think it was

4.75 0
4.625 .375
4.5 .875

after that the points jumped big time. 4.125 was 3.5
Not taking into account any other costs, your loan and the 4.125 with 3.5 pts are only .007 different in terms of APR (4.631 vs 4.638).

I don't see that on their web site right now either. The best APR 15yr fixed loan showing right now is 4.625 with .625 pts.

I got 4.25 15yr fixed with 1.875 pts from NFCU. They're also charging a 1% origination fee too. Still only 4.675 APR.
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Old 12-14-2008, 10:19 PM   #9
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Not taking into account any other costs, your loan and the 4.125 with 3.5 pts are only .007 different in terms of APR (4.631 vs 4.638).
True, but i didn't want to lay out 3.5 points cash. Plus if rates drop big again, I can lock at a lower rate for .625 points.
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I don't see that on their web site right now either. The best APR 15yr fixed loan showing right now is 4.625 with .625 pts.
You have to call to get all the offers. They only show 3 for each category.
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Old 12-17-2008, 11:01 AM   #10
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Plug in your stats on their web page to get a good faith estimate.

I just refi'd my 30yr @ 6.5 to a 15yr @ 4.5.
Yeah, looks like refinancing with PenFed as an existing customer isn't nearly cost-free as being a new customer. On a $350k note I'd end up paying about $3k in related closing costs.

Their 30yr rate dropped today to 5.125% with 0 points, but the 15yr stayed the same (4.75%) and now costs more points (1.5) than yesterday to buy it down to 4.5%. If those 15 year rates come down a bit further it'll be hard not to pull the trigger despite the extra costs.
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Old 12-17-2008, 11:39 AM   #11
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Rates should drop more eventually after the Fed drop right? I see that the points are less on the PenFed 20 yr than the 15 year, and the rate is the same. What's up with that?

I'm hoping for 4.5% for 20 years with no points........
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Old 12-17-2008, 12:37 PM   #12
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Most of the rates I'm seeing only have a 1/8% spread between a 15 and a 30. Although I'm a big fan of paying off the mortgage in 15 years instead of a 30, with a spread that small I think I'd take the 30 and plan to pay it off in 15. That way if you have a major expense or job loss, you can cut the payments back some to preserve cash flow.
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Old 12-17-2008, 06:06 PM   #13
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4.875 for 10, 15 and 30 year terms at my local CU, no points.
May finally do it.
Does anyone really think we will reach 4.5?
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Old 12-17-2008, 07:09 PM   #14
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4.75% at Penfed, no points for 10, 15, & 20 fixed.
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Old 12-17-2008, 07:46 PM   #15
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I personally am watching both the 15 fixed and the 5/5 at pen fed. I have 9.5 years to go on my note. At 4.5% or less on the 15 it is worth my while to refi. The interesting part would be the 5/5 if it gets to 4% or less. That particular loan can only adjust to a max of 2% at the reset date and is then set for another 5 years. Since I intend to keep paying down the note to make my original payoff date, the loan would be gone before it adjusted again. Fiddling with the numbers suggests that if the 5/5 goes to 4% or less the economics start to become quite compelling for me.
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Old 12-17-2008, 08:27 PM   #16
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I think PenFed pulled a bait and switch on me.

When I applied on the internet, good faith estimate closing costs were $1500.

Now they are $4400 plus there is some extra line item in my estimated monthly payment for $63 called Other & Spec Assess & Assoc. What the hell is that.

They can forget it if I have to pay all that sht. I'm pissed. Not to mention I don't get a called back and it's been 3 days.
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Old 12-17-2008, 08:32 PM   #17
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Pen Fed is showing some products with sub 5% rates.
Yup, and we're off to the races (again).

One colleague of mine took out a home equity interest only loan and used the proceeds to buy a floating rate medium/high quality corporate bond at pick ~600bp.

Another colleague is looking at taking out a fixed rate mortgage and buying NY State GO bonds at pick 200bp or so, tax free.

This is apparently what the Fed wants. It seems the animal spirits are stirring again and 2009 might prove to be a good year to buy risky assets as a result. But if cheap money inflated the last two bubbles, the next one might be the one to worry about.
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Old 12-18-2008, 09:48 AM   #18
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If anyone qualifies for membership, BECU has some of the best rates I could find. (becuhomeloans.org).

Yesterday's rates - todays aren't posted - are 4.5% with -.125 points for a 30-year fixed. Of course, there's the 1% origination fee, plus the other standard fees, but it can be worth it for the lower rate.
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Old 12-18-2008, 09:53 AM   #19
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This is apparently what the Fed wants. It seems the animal spirits are stirring again and 2009 might prove to be a good year to buy risky assets as a result. But if cheap money inflated the last two bubbles, the next one might be the one to worry about.
Not necessarily -- if bankers remain tight sober about their lending practices and approvals.

It wasn't the low rates in and of themselves that ruined the economy -- it was the reckless borrowing and lending with marginal borrowers taking out toxic ARMs with little or nothing down, backed by inflated assets.

I suspect the Fed wants two things: (1) to kickstart demand for housing; (2) for people with toxic ARMs and Alt-As that could blow up in a year or two to refi into a low rate traditional 15- or 30-year FRM. Of course, the people in (2) need to hope they have enough equity to refi.
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Old 12-18-2008, 10:42 AM   #20
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Qualstar CU (Washington State) quotes 4.75% on 30 year fixed with .75% origination fee. I was offered 4.625% on a refinance mortgage on Monday. Haven't seen the good faith estimate yet.
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