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PenFed 10yr 4.99% HE LOAN
Old 05-02-2008, 10:53 AM   #1
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PenFed 10yr 4.99% HE LOAN

I see they're still offering this with zero costs. Has anyone closed on this offer recently? How did it go?

Will Penfed allow me to keep my other LOC?
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Old 05-02-2008, 11:16 AM   #2
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FYI. Just talked to BOA HELOC CS and he said their HELOC APR is going to 4.24 on May 7.
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Old 05-02-2008, 12:04 PM   #3
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What do you need to qualify for that? Direct pay? Other accounts? Draw amount?

Is that a fixed 4.24?
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Old 05-02-2008, 01:05 PM   #4
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I closed in late march. First payment due in a few days. 4.99% fixed for 10 years. HE loan. I basically refi-ed my whole mortgage into it, so presumably I could get a second mortgage (HE loan or HELOC) if I wanted.

Penfed should let you keep your 1st mortgage, but probably not any 2nd mortgages or LOC's. Call them and ask though. You never know, and if the LTV is good, they might take a 3rd position (who knows?).
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Old 05-02-2008, 01:40 PM   #5
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Why are they offering this HE Loan when the 10yr mortgage is 5.5 with $1500 closing costs.

What's the difference to them and to me?

I would refi my 1st mortgage into this which is currently at 6.5%, but I would like to keep my LOC which I got last yr. Total avail equity would put me at 68%, total used, around 42%.

I don't think mort rates are coming back down to 5% 0 pts.
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Old 05-02-2008, 02:20 PM   #6
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Maybe get a HE loan and a HELOC from pen fed at the same time?
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Old 05-02-2008, 05:53 PM   #7
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I just closed the 10 yr 4.99 Home Equity Loan (fixed) not line of credit. Painless. Was approved on line. That afternoon I got an email with directions to call about setting up a closing date. A week later I got the package, signed, notorized and sent it back. 7 days later money showed up in my account. Did direct draft for the amount. I basically took the money and put on my first mortgage. First will be paid off in 2 yrs, then I will have this little payment for the next 8. It was a cash flow play for me.

There is a clause that you must pay the closing cost if you pay it off in the first 24 months. But its only $120 or so.

Tomcat98
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Old 05-14-2008, 10:07 AM   #8
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Applied today online. I figured rates aren't coming down anytime soon and this will bump up my payment by only $50 month. I also get to keep my LOC with another bank.

Bummed that I missed 4.625/15 yr, but this will save me 20k over the next 10 yrs.

Cleaning up a 30yr at 6.5%. This will better align my ER in 11 years.
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Old 05-16-2008, 08:40 AM   #9
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Quote:
Originally Posted by Tomcat98 View Post
I just closed the 10 yr 4.99 Home Equity Loan (fixed) not line of credit. Painless. Was approved on line. That afternoon I got an email with directions to call about setting up a closing date. A week later I got the package, signed, notorized and sent it back. 7 days later money showed up in my account. Did direct draft for the amount. I basically took the money and put on my first mortgage. First will be paid off in 2 yrs, then I will have this little payment for the next 8. It was a cash flow play for me.
Tomcat98
I got approved the same day - checked the status online. I left a voice mail for the rep that got assigned to my application, but haven't heard back from anyone. I guess I'll just wait it out.
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