Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 03-18-2008, 01:42 PM   #201
Thinks s/he gets paid by the post
JPatrick's Avatar
 
Join Date: Jun 2005
Posts: 2,494
Quote:
Originally Posted by brewer12345 View Post
Not sure if I quite have the brass cojones to do this, but a thought has crossed my mind: with the Fed whacking rates to beat the band and not about to reverse course any time soon, why not refi the mortgage onto a HELOC? Schwab offers a 70% LTV HELOC at prime minus 1%, which would be 5% right now (less if the Fed does what everyone seems to be expecting).
Regarding the FED raising rates, (or not) course reversal will occur and very possibly much sooner than we might imagine... The Fed wants to turn around housing with as little pain on the inflation and falling dollar front as possible. Just as soon as we see the slightest sign housing is recovering the Fed will jump at the chance to raise. IMHO I would think that will happen about 12 months from now.
__________________

__________________
JPatrick is offline   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 03-18-2008, 04:06 PM   #202
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Lsbcal's Avatar
 
Join Date: May 2006
Location: west coast, hi there!
Posts: 5,676
Saw this nice chart of what I think are mortgage rates that might appeal to some who are monitoring the situation: Bloomberg.com: Investment Tools
__________________

__________________
Lsbcal is offline   Reply With Quote
Old 03-19-2008, 09:34 AM   #203
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,616
Quote:
Originally Posted by brewer12345 View Post
Not sure if I quite have the brass cojones to do this, but a thought has crossed my mind: with the Fed whacking rates to beat the band and not about to reverse course any time soon, why not refi the mortgage onto a HELOC? Schwab offers a 70% LTV HELOC at prime minus 1%, which would be 5% right now (less if the Fed does what everyone seems to be expecting).
That sounds like a great way to arb the interest rates.

What are the terms of the loan? Does it stop drawing after 10 years and require you to pay it back over the next 10?

NFCU shaved an eighth off their 30-year fixed-rate no-points 80% loan, but it's still 5.75% and .375% above our current rate. No change since the Fed meeting (yet).

I'm intrigued by this offer in NFCU's fixed-rate loan section: "Interest only payment options are available on 30 year products." But that's probably in its own class of interest rates.
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Old 03-19-2008, 09:57 AM   #204
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
HELOC's mostly come in the 10 year draw, 15 year repayment flavor. But Pen Fed's is a 15 year draw, bullet maturity.
__________________
"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 03-19-2008, 12:01 PM   #205
Recycles dryer sheets
 
Join Date: Dec 2006
Posts: 424
That's strange...looks like Pen Fed changed their rates twice today.

Around 11am 15yr was

5.125 0
5.000 .25
4.875 .875

Now they have

5.250 0
5.125 .375
5.000 1.125
__________________
JohnDoe is offline   Reply With Quote
Old 03-19-2008, 12:07 PM   #206
Thinks s/he gets paid by the post
SecondCor521's Avatar
 
Join Date: Jun 2006
Location: Boise
Posts: 2,401
Quote:
Originally Posted by JohnDoe View Post
That's strange...looks like Pen Fed changed their rates twice today.

Around 11am 15yr was

5.125 0
5.000 .25
4.875 .875

Now they have

5.250 0
5.125 .375
5.000 1.125
I think PenFed changes their rates once a day around lunch time. So most likely you'll see the second set of rates until tomorrow lunch time.

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.
SecondCor521 is offline   Reply With Quote
Old 03-19-2008, 12:11 PM   #207
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
I am patiently waiting to see if the 5/5 ARM goes to 4.5% or so. Given how low treasury rates are and the news on the chains around Fannie and Freddy being loosened, its only a matter of time before mortgage spreads decline.
__________________
"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 03-19-2008, 12:55 PM   #208
Recycles dryer sheets
 
Join Date: Jan 2008
Posts: 314
Quote:
Originally Posted by JohnDoe View Post
That's strange...looks like Pen Fed changed their rates twice today.

Around 11am 15yr was

5.125 0
5.000 .25
4.875 .875

Now they have

5.250 0
5.125 .375
5.000 1.125
The other option of course would be to "buy down" the rate by paying more points.
__________________
Primary title "chief moron"
myself is offline   Reply With Quote
Old 03-19-2008, 04:07 PM   #209
Moderator Emeritus
laurence's Avatar
 
Join Date: Feb 2005
Location: San Diego
Posts: 5,234
Quote:
Originally Posted by brewer12345 View Post
I am patiently waiting to see if the 5/5 ARM goes to 4.5% or so. Given how low treasury rates are and the news on the chains around Fannie and Freddy being loosened, its only a matter of time before mortgage spreads decline.
I know this would just be guessing, but how low do you think 15 year rates might go? I'm in a 20 year @ 5.125% so I don't think it will ever be worth it to refi, but I'm keeping my eyes open.
__________________
laurence is offline   Reply With Quote
Old 03-19-2008, 04:17 PM   #210
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
Quote:
Originally Posted by laurencewill View Post
I know this would just be guessing, but how low do you think 15 year rates might go? I'm in a 20 year @ 5.125% so I don't think it will ever be worth it to refi, but I'm keeping my eyes open.
Sitting on the reaminder of a 15 year at 5% myself and wondering the same thing. I really don't know. Depends on whether the mortgage market ever heals. Hard to see treasuries much lower than where they are now, so I think this is mostly about spreads of mortgages over treasuries. I think spreads could drop 75BP, maybe more, but it would require the mortgage mess to come unstuck. As long as treasuries didn't sell off enough to offset the spread drop, mortgage rates could go down a good bit.
__________________
"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 03-19-2008, 04:58 PM   #211
Thinks s/he gets paid by the post
DblDoc's Avatar
 
Join Date: Aug 2007
Posts: 1,224
We are about to close (hopefully) with a Pen Fed 15yr @ 5% thanks to the early posts in this thread so not likely to refi again unless rates really tumble.

DD
__________________
DblDoc is offline   Reply With Quote
Old 03-19-2008, 08:23 PM   #212
Recycles dryer sheets
 
Join Date: Dec 2006
Posts: 424
I'm sitting on a 30 yr @ 6.5, and I want to get under 5 on a 15yr.

I was about to call pen fed at lunch today to see what 3 points would get me, but they changed the rates.
__________________
JohnDoe is offline   Reply With Quote
Old 03-19-2008, 10:14 PM   #213
Full time employment: Posting here.
Darryl's Avatar
 
Join Date: Mar 2007
Posts: 577
I closed with Penfed a couple weeks ago at 15yr fixed 4.625% I think the rate was only that low for a day. I did the app at night and the next morning I had an email saying thanks all you need to do now is choose when to lock your rate (which I thought I did the night before) I replied to lock now and a few hours later the rate was climbing.
__________________
I highjacked a rainbow and crashed into a pot of gold - Bon Jovi
Darryl is offline   Reply With Quote
Old 03-20-2008, 06:48 AM   #214
Recycles dryer sheets
 
Join Date: Dec 2006
Posts: 424
Yea, it went from 4.625 to 5.125 the next day. That's an awesome rate.
__________________
JohnDoe is offline   Reply With Quote
Old 09-11-2009, 03:08 PM   #215
Recycles dryer sheets
 
Join Date: Apr 2005
Posts: 62
Hi folks. Just thought I would mention this again as PenFed is currently offering 30 yr fixed at 4.875 with 0 points.

I pulled the trigger and submitted my application. I'm just hoping the appraisal does not come in so low that my LTV is > 80%. We've lost some value in the last couple years. Not sure how much though.
__________________
BristolBane is offline   Reply With Quote
Old 09-11-2009, 04:36 PM   #216
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
I am thinking that I will be watching Pen Fed's 5/5 rate like a hawk. If it dips to 4.25% or less I will almost certainly pull the trigger.
__________________
"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 09-12-2009, 06:19 AM   #217
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
clifp's Avatar
 
Join Date: Oct 2006
Posts: 7,450
Is anybody watching PenFed's CD rates? When they go back up to 6%. Somebody please post that ....

Right now I have 1 CD at 6% 1 HELCO at 4.99% and another CD at 4%. Seems like PenFed and I are even in the interest rate department.
__________________
clifp is offline   Reply With Quote
Old 09-12-2009, 11:47 AM   #218
Recycles dryer sheets
 
Join Date: Jan 2007
Posts: 105
Quote:
Originally Posted by BristolBane View Post
Hi folks. Just thought I would mention this again as PenFed is currently offering 30 yr fixed at 4.875 with 0 points.
Note that PenFed is still charging a 1% origination fee for all fixed mortgages....they previously didn't do this. These are still are great rates, though.
__________________
jblack is offline   Reply With Quote
Old 09-12-2009, 02:48 PM   #219
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,616
Quote:
Originally Posted by clifp View Post
Is anybody watching PenFed's CD rates? When they go back up to 6%. Somebody please post that ....
I'm gonna be crying when my 6.25% CD matures in January...
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Old 09-12-2009, 03:35 PM   #220
Recycles dryer sheets
 
Join Date: Sep 2009
Location: Two Harbors
Posts: 54
W/O reading this entire thread...is PenFed a or THE best source for online CDs and Mortgage offerings??

I am considering refinancing my 15 yr 5.375% mtg and I also have a 10 year fixed income ladder with mostly Bank CDs averaging 5% return. I am in need of a 7 year maturity and a 10 year maturity and have been waiting/looking for some better rates. My anticipation is that CD rates will go up vs down in the next couple of years.

My 15 year mortgage has less than 10 years and I am open to some of the lower rate options...say 10/1...w/additional principal payments to amortize over the reduced interest rate 10 year period. That creates lower/lowest? rate...but accomplishes mortgage payoff at about the same time as my current 15 year...which is my general goal.

I could payoff right away...but I like the discipline of using current earnings to pay down mtg...vs. reducing investment assets. I am self-employed...somewhat less than 50% of my time...trying not to reduce investment assets for another 4-5 years. Consulting practice doing pretty well...withdrawn little/nothing for 7+ years of "flexible" working arrangement

Thanks...1st post...Tom R in Two Harbors, Mn
__________________

__________________
TomCat is offline   Reply With Quote
Reply

Tags
mortgage


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
Mortgage Rates & the Fed scooter260 Other topics 6 12-08-2007 08:09 AM
Mortgage Rates runnerr FIRE and Money 1 12-02-2007 03:49 PM
Mortgage Rates Arc FIRE and Money 37 03-26-2007 09:21 PM
Refi Question for all you Mortgage Gurus Patrick FIRE and Money 7 10-03-2006 11:19 PM
Mortgage/Withdrawal Rates stevelb FIRE and Money 2 07-02-2002 02:04 AM

 

 
All times are GMT -6. The time now is 01:32 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.