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Old 10-15-2010, 02:53 PM   #41
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I got an email from PenFed today stating their 30 year fixed is at 3.958% APR. I would love to snag that rate.
We just pulled the trigger on the 3.625% 30-year fixed at 1.375 points (plus PenFed's 1% origination fee). It took about 30 minutes to do the application on PenFed's website, and I guess they'll follow up by mail.

This will be our sixth refi on this home in 10 years, although nearly all of the previous refi fees have been paid back. It'll restart the mortgage, of course, and lower our payments by 12%. We'll have it paid off when I'm 80 years old.

Unless rates go lower...
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Old 10-15-2010, 11:42 PM   #42
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This will be our sixth refi on this home in 10 years, although nearly all of the previous refi fees have been paid back. It'll restart the mortgage, of course, and lower our payments by 12%. We'll have it paid off when I'm 80 years old.

Unless rates go lower...
Good for you Nords! That's incredible to lower your payment by 12%. I'm going to wager that this won't be the last time you refinance.

I thought we would put an offer in on the house tonight. We decided to take the weekend and decide if we want to try to get them to pick up 1/2of the closing costs in addition to our low offer.

I think housing prices in Portland, OR are going to continue down for a while and it would be wise to rent for a year or two before buying. So, if they reject the offer we will just hang tight and look for a rental.

I am also on the selling end of this mess (with two other properties) and I do have sympathy for the seller.
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Old 10-16-2010, 12:15 AM   #43
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I'm going to wager that this won't be the last time you refinance.
Funny, that's what spouse said the last five times too.

I told her it's really really really really really really different this time. And this time I really mean it.
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Old 10-19-2010, 10:45 AM   #44
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FYI, Penfed's 5/5 ARM rate is lower now. 3.625% with no points, 3.5% with 0.375 points.

Also tasty in the mortgage market is ING Orange Mortgage at 3.125% for a 5/1 ARM with low closing costs.

For all my fellow gluttonous diners at the buffet of cheap debt.
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Old 10-19-2010, 11:18 AM   #45
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FYI, Penfed's 5/5 ARM rate is lower now. 3.625% with no points, 3.5% with 0.375 points.

Also tasty in the mortgage market is ING Orange Mortgage at 3.125% for a 5/1 ARM with low closing costs.

For all my fellow gluttonous diners at the buffet of cheap debt.
Lest we get distracted by the cheap eats, let us not forget that all of this has to be serviced and eventually paid back.
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Old 10-19-2010, 12:30 PM   #46
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Lest we get distracted by the cheap eats, let us not forget that all of this has to be serviced and eventually paid back.
Who knows, maybe the government will come up with an Income Based Repayment plan for mortgages too! They already have in a way for select debtors.
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Old 10-20-2010, 05:40 PM   #47
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I just crunched the numbers on my 15 year 4.5% mortgage with taking it down to 10 years @ 3.25%.

Based on their website and a quick call, my closing costs would be a whopping $3,600 on a note under 100k.

Keeping my payment amount the same(I prepay) and rolling the closing, it looks like it would cut 2 months of the payoff date and save me about 5k.

Not sure it's worth the hassle. Last time with Penfed was a nightmare.
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Old 10-21-2010, 02:04 AM   #48
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Was looking forward to doing a rate mod with them to current 15yr fixed 3.5% paying 1pt for rate mod fee. Unfortunately, the customer rep told me that they stopped doing the rate mod special for existing fixed mortgages since Thursday last week. Bummer.
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Old 10-21-2010, 07:52 AM   #49
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I opened an account with PenFed in case I wanted to do a loan of some sort. Have no money invested with them. Just an account number. Yesterday I got a flyer about them offering 2.9% auto loan. I'm interested in that. Is it that easy to get a loan with them? I have a good credit score.
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Old 10-21-2010, 11:20 AM   #50
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We just pulled the trigger on the 3.625% 30-year fixed at 1.375 points (plus PenFed's 1% origination fee).

And here I was, all excited about my 30yr at 4.375 no cost refi.

I'll take my ball and go home
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Old 10-21-2010, 02:48 PM   #51
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And here I was, all excited about my 30yr at 4.375 no cost refi.
I'll take my ball and go home
They just knocked another quarter-point off the refi costs because the loan amount is considered a low percentage of the home's value.

Now it's time to print/scan/e-mail the documentation from hell.
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Old 10-21-2010, 05:29 PM   #52
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Hello everyone this is my first post. I've been lurking for about 1 or 2 weeks great site! So many questions going through my mind but I guess I have to start somewhere.

Dw and I began getting aggressive on our mortgage 9/08. We owed 245k and as of today we owe 151k. We refied a year ago from a 30 year fixed @ 6.25% to a 15 year fixed @ 4.75%.

My question is with our aggressive ways (buying down the rate) would it be worth it to refi again at 3.75% no points 10 or 15 year fixed? We will pay all closing cost out of pocket.

We plan on staying in the home indefinitely. Both still w***ing although dw is drawing a pension (she started vary young now 50). Thanks for any replies.
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Old 10-21-2010, 06:22 PM   #53
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My question is with our aggressive ways (buying down the rate) would it be worth it to refi again at 3.75% no points 10 or 15 year fixed? We will pay all closing cost out of pocket.
It's hard to say without exact numbers. By "aggressive ways", I assume you mean by aggressively paying down the mortgage (not "buying down the rate" which implies getting a lower interest rate by paying points).

There are several mortgage calculators you can use to figure out if the extra costs are worth it to refinance. Additionally, you might be interested in the PenFed 5/5 ARM which will give you pretty low rates at a pretty low cost. The rate is fixed for 5 years before it adjusts up, so if you have the cash flow, you can pay it down pretty aggressively before it adjusts.
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Old 10-21-2010, 06:42 PM   #54
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Yes I do mean aggressively paying down the mortgage every month. My way of understanding the numbers is if we are paying loads of principal each month we are in the end paying less interest over the life of the loan (same as lowering the interest rate).

I may look into one of those arms. I'm more of a traditionalist I guess have always been told to go fixed on mortgages. We hope to be able to pay it off within 2 or 3 years.
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Old 10-21-2010, 08:06 PM   #55
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Yes I do mean aggressively paying down the mortgage every month. My way of understanding the numbers is if we are paying loads of principal each month we are in the end paying less interest over the life of the loan (same as lowering the interest rate).

I may look into one of those arms. I'm more of a traditionalist I guess have always been told to go fixed on mortgages. We hope to be able to pay it off within 2 or 3 years.
Kongmen, you can google the mortgage professor and use his excellent calculators to see what makes the most sense for you (the owner of the site is a professor emeritus of mortgage finance from Wharton), but based on my own modelling of mortgage refi scenarios it is highly unlikely that any standard mortgage refinance will make sense if you really intend to pay off your existing mortgage within 2 to 3 years. I am in somewhat similar straights, in that I am aggressively paying down my mortgage and expect to be one within 5 years. Like you, I always went for the scurity of a fixed note until last November when I did enough modelling to become comfortable with a refi from a 5% 15 year fixed to a 3.875% 5/5 ARM from Pen Fed. A year later with some lump sum paydowns and an aggressive monthly paydown, my modelling suggests that at best I would break even by refinancing even at rates a full percenage point below curent record low rates. So for me this is a source of comfort: its not going to make any difference by refinancing, so all I need to do is keep plodding along, try not to go insane, and kill the mortgage. I would not be surprised to find you are in the same boat.

BTW, you will find an, um, diversity of opinion on mortgage paydown on this site. I personally would like to congratulate you on the excellent progress you have made on paying down your note. It demonstrates very strong frugality and ability to sock it away. Kudos.
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Old 10-21-2010, 08:51 PM   #56
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brewer12345, thanks for the kudos. You know, that really does help. I've been working an INSANE amount of overtime but I think it will be worth it in the end even if I am giving back cheap money .

I don't know the details of your mortgage situation but I'm sure you are sacrificing as well so I want to CONGRATULATE you on your efforts as well.
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Old 10-21-2010, 09:00 PM   #57
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brewer12345, thanks for the kudos. You know, that really does help. I've been working an INSANE amount of overtime but I think it will be worth it in the end even if I am giving back cheap money .

I don't know the details of your mortgage situation but I'm sure you are sacrificing as well so I want to CONGRATULATE you on your efforts as well.
Much appreciated. I would suggest that you think about what comes next. I can tell you from painful personal experience that killing yourself for a financial goal goes only so far, and then you generally hit the wall. For me, this lead to a revelation that I need to take better care of myself and try to achieve some balace. Whe the mortgage is paid off, then what? Important stuff, IMO. Way more important than rate and term.
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How low can it go?!
Old 10-22-2010, 12:04 PM   #58
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How low can it go?!

PenFed's 5/5 ARM is now down to 3.5! I'm considering paying 0.5 points and refi-ing my existing 5/5 4.0 rate. If nothing else, it'll restart my 5 year clock.

I'm interested on how this will affect their previous rate floor of 3.75.
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Old 10-22-2010, 12:16 PM   #59
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PenFed's 5/5 ARM is now down to 3.5! I'm considering paying 0.5 points and refi-ing my existing 5/5 4.0 rate. If nothing else, it'll restart my 5 year clock.

I'm interested on how this will affect their previous rate floor of 3.75.
Consider maybe buying it down another .125 by paying another .125 in discount points.

Is the 0.5 points for a rate reduction still valid?
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Old 10-22-2010, 12:45 PM   #60
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Consider maybe buying it down another .125 by paying another .125 in discount points.

Is the 0.5 points for a rate reduction still valid?
Good idea on the buy down. Apparently the rate reduction for their ARMs is now 1pt (as of 10/14). Also, they've completely stopped the rate reductions on their fixed rate loans.

The cost for the ING Direct 2.99% loan and the PenFed rate reduction is now the same. The rate reduction is performed by paying the point and signing a simple form. I'm in the middle of changing jobs so it seems like the rate reduction would be much easier to do. Or, I could just wait and see if PenFed goes down a little bit closer to the ING rate. Lots to think about.
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