We traded our 4.5% mortgage for a Penfed 5-year conventional 2.99 HEL (not a HELOC or ARM). We do our own tax/insurance escrow, so those costs don't apply in our case. We applied on line and were credit-approved instantly. We used a notary at our home credit union for the paperwork. We paid the following fees:
- $50.00 to the mortgage co. to process our payoff
- $14.50 total for our CU to wire the payoff to the mortgage co, and for the mortgage co. to accept the wire.
- PFCU also charges a lien release fee (currently $37.50), and if we were to pay off the HEL before 24 months have elapsed, PFCU will retroactively charge the closing costs to us. Naturally, we don't expect to incur that expense.
Now, here is the wrinkle: The whole procedure took almost two months
- far longer than we expected. We are in MD, and PFCU's loan dept is in NE. Everything except the notarized papers, which we Fedexed to NE, went by U.S. mail, including PFCU's check to us. PFCU blamed the delays on those two sacred cows of all excuses, "The Holidays" (Columbus and Veteran's Days to be exact) and "The Post Office."
PFCU's check then had to sit in our credit union for a week before the CU would wire the funds to the mortgage co, so that
delay cost us an additional $100.00 in mortgage interest. Yes, even though it was a check from another financial institution, the CU had to follow "procedure" and let it mellow for a while!
Originally Posted by Mulligan
Im really tempted to do this Pen Fed 5/5 arm. Was it truly a " no cost"? I have never refinanced "off site" and they mentioned about sending the paper work to your lawyer, to close, which I do not have. Is that a cost I incur? Approximate cost to do that? I guess, Im looking at any expenses that I would truly have to pay for the Pen Fed 5/5 offer besides the escrow adjustments and interest for the month. How many "man hours" did you have to endure to complete the process? Thanks for anyone to respond if they have refinanced with PF.