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Old 04-14-2010, 09:43 AM   #41
Dryer sheet wannabe
 
Join Date: Oct 2006
Posts: 24
Sorry to dredge up an old thread, but I wanted to say thanks for making me aware of this offer. My own mortgage company did not want to refinance me and would have charged me extra points simply because I'm refinancing a condo and not a single family dwelling.

I just closed this week, exactly 45 days after the online application. I paid off $150000 (6.25% 30 yr fixed), and the new loan is $133,000 (4%, 5/5ARM). Total settlement charges, including prepaid interest, were ~$1468 of which I paid ~$750 after PenFed's closing cost credit. My condo dropped in value, so including the closing costs I just mentioned, I actually paid $18000 to bring equity up to 20%.

The attorney/notary actually came to my office to complete settlement, so I didn't have to take the morning off work. That was sweet.

Other points:
-PenFed decided not to escrow, which is nice. My insurance is less than $200/yr and taxes are about $800 which I can deal with on my own once a year.
-Since I would have to pay all costs if the loan did not go through, PenFed was willing to do the appraisal first so that if I chose not to continue based on appraised value, the appraisal fee would be the only cost that I would incur.
--I'm not affiliated with the military, so had to make a one time donation to the National Military Family Assoc to be eligible to join PenFed
-The only problem that came up was with my own credit union, which tends to have sticky fingers with my money. I went in person last week to explain that I would be transferring a large sum (for me) to my checking account, and would there be any unusually long hold periods. I was told no. Are you sure? Yes. So what happened when I went in this week to get a cashier's check? I was told that there would be a longer hold because the money was coming from ING and that this was the only bank they do this for, "as ING as the ability to remove money as well as deposit it."

In summary, I've basically decimated my savings, but I will save $300/month with the new mortgage. I've been living very lean for a while now, trying to accelerate payments on a $20000 HELOC on a rental property. The plan is to continue living lean, focus on rebuilding savings in 2010 then pay off the HELOC in 2011. So by 2012, I'll be able to spend a little more to improve my standard of living, prepay the mortgage by $300 and start adding to my taxable investments again.
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5/5 ARM is back for 3.875!
Old 05-10-2010, 07:58 AM   #42
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5/5 ARM is back for 3.875!

5/5 ARM is back for 3.875! Must've changed as of Fri. PM, I just noticed it this morning (5/10).

Rate Points APR
3.875 0.000 4.116
3.750 0.250 4.092
3.625 0.625 4.078

-CC
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Old 05-10-2010, 07:28 PM   #43
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Does penfed charge anything for paying off these 5/5 loans early?
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Old 05-10-2010, 07:58 PM   #44
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Quote:
Originally Posted by drb111 View Post
Does penfed charge anything for paying off these 5/5 loans early?

As I understand it, if you pay off the loan completely within a year they charge you for what they paid to close the loan. So keep a smidge out for a year and you are home free.
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Old 05-12-2010, 01:05 PM   #45
Confused about dryer sheets
 
Join Date: May 2010
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I've read that people who have recently re-fi'ed with Penfed have paid significantly lower "Title services and insurance" than what they just quoted me in the GFE: $1628.34, which seems like a huge amount of money for title insurance.

I plan on going ahead with the loan but would rather not get burned on this if I don't have to. The quote was apparently from their preferred provider for these things: ServiceLink in Aliquippa, PA

Does it make sense for me to shop around and arrange for my own provider? Working with a 45 day lock which started Monday with the 3.875% rate.

Thanks for any help.
Ryan
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Old 05-12-2010, 01:16 PM   #46
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Quote:
Originally Posted by rlcrisp View Post
I plan on going ahead with the loan but would rather not get burned on this if I don't have to. The quote was apparently from their preferred provider for these things: ServiceLink in Aliquippa, PA

Does it make sense for me to shop around and arrange for my own provider? Working with a 45 day lock which started Monday with the 3.875% rate.
Are you sure the 1628.34 is just title insurance? Whenever I've seen title insurance quoted in the GFE it has always been a round number. If that's it, it does seem high, although I suppose it does depend on the property.

If you arrange for your own provider, you might not get a refund of your settlement charges. When I refi'd thru PenFed, they also used ServiceLink in PA. They came out to be about $360 for my house, which was not too much more expensive than a third party title insurance provider. I came out ahead since they refunded my settlement charges (IIRC about $350). If you want, you could check Title insurance direct to consumer | ENTITLE DIRECT to get a quote.
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Old 05-13-2010, 08:37 AM   #47
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Since I had purchased my condo only a few years ago, I requested the "reissue rate" on the title insurance to get a discount. I had to provide a copy of the (then) current policy.
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