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Old 10-22-2010, 01:28 PM   #61
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Originally Posted by WanderALot View Post
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.
I'm sitting still for the moment. Seeing if rates go down further. Still eyeing the Orange 5/1 mortgage at 3.125% with same closing costs as Easy Orange at 2.99%.

I also noticed the 5/5 ARM HELOCs are down to 3.88% right now.
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Old 10-22-2010, 01:52 PM   #62
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I'm sitting still for the moment. Seeing if rates go down further. Still eyeing the Orange 5/1 mortgage at 3.125% with same closing costs as Easy Orange at 2.99%.
What's does the Orange 5/1 offer over the Easy Orange? The only differences I see is the balloon payment (which sounds like it can be quickly rolled into a new mortgage without closing costs) and the biweekly/monthly payments.
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Old 10-22-2010, 02:04 PM   #63
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What's does the Orange 5/1 offer over the Easy Orange? The only differences I see is the balloon payment (which sounds like it can be quickly rolled into a new mortgage without closing costs) and the biweekly/monthly payments.
25 additional years to repay the loan is the key difference. And you know you won't be paying more than 2% more than the initial rate in year 6, then 2% more in year 7. Who knows, we may have 10% interest rates in 2015 when the Easy Orange is set for renewal, and you are subject to the mercy of the rates at that time (or just pay it off).

In my particular case, I could probably swing the Easy Orange at 1/8% less, just because I have a HELOC that won't charge me more than 6.25% in 5 years and I can put any remaining balance from the Easy Orange on the HELOC. Assuming I can subordinate the HELOC in a refi into an Easy Orange. I saw something at fatwallet I think that said you cannot have a HELOC on top of an Easy Orange?? I never looked into the Easy Orange any more though.
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Old 10-22-2010, 08:15 PM   #64
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I just noticed they have a 10 year fixed HE Term at 3.99 no closing costs. I think I will look into that.
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Old 10-23-2010, 12:59 PM   #65
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25 additional years to repay the loan is the key difference. And you know you won't be paying more than 2% more than the initial rate in year 6, then 2% more in year 7. Who knows, we may have 10% interest rates in 2015 when the Easy Orange is set for renewal, and you are subject to the mercy of the rates at that time (or just pay it off).
Agreed, but I thought you, like me, were paying extra and intended to pay off the loan by the time 5 years were up. The Fuego I know wouldn't let something like a small outstanding balance prevent him from saving 1/8%
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Old 10-23-2010, 01:11 PM   #66
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How easy is PenFed to deal with when taking out a new mortgage? I am on the west coast so the time difference can be a problem. I called the mortgage guy that was assigned to me on Thursday and left a message then called again on Friday and left a message.

I'm wondering if I can obtain a mortgage through them by early December.

Can anyone share their experience with me?

Thank you!
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Old 10-23-2010, 02:17 PM   #67
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How easy is PenFed to deal with when taking out a new mortgage? I am on the west coast so the time difference can be a problem. I called the mortgage guy that was assigned to me on Thursday and left a message then called again on Friday and left a message.

I'm wondering if I can obtain a mortgage through them by early December.

Can anyone share their experience with me?

Thank you!
I refinanced with Pen Fed last Fall, taking out a 5/5 ARM. It took 6 or 8 weeks, but I was not champing at the bit to get it done quick and was in fact travelling for business a fair bit and was not around for part of the time. I did almost everything by email, speakin my loan officer maybe twice. They wanted an amazing amount of documentation, but that appears to be typical of the mortgage market these days. I was able to submit everything electronically via email and it in general was not a big deal.

The wild card is that I don't know what potentially high refinancing volumes might do to Pen Fed's processing times, so YMMV.
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Old 10-23-2010, 07:45 PM   #68
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Agreed, but I thought you, like me, were paying extra and intended to pay off the loan by the time 5 years were up. The Fuego I know wouldn't let something like a small outstanding balance prevent him from saving 1/8%
I might be willing to pay the 1/8% as insurance to have an extra 25 years to repay "just in case" in general. But yes, you are right, I could take the $20-30k that would be left at the end of the 5 years and put it on my existing HELOC (assuming I could keep it by subordinating it to the new 1st position that the Easy Orange mortgage would hold). So essentially riskless for me in my position.

I'm still wondering whether up to $1000-$1400 is worth refi-ing for (if I hold 5 full years). Heck, if the market pops up 30% or so over the next couple years I may just sell a little bit of mutual funds and pay it off. Or take the wait and see approach and hope for even lower rates...
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Old 10-24-2010, 01:54 AM   #69
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I'm wondering if I can obtain a mortgage through them by early December.
Can anyone share their experience with me?
Thank you!
I think you can, depending on how long it takes your appraiser. It'll take PenFed 30-60 days total but they'll lock your rate for the duration.

I applied Friday the 15th on their website (no phone calls). I got a confirmation e-mail the next day. On Wed 20th my answering machine lit up with calls (we weren't home) about an issue that confused them. They figured it out without my help and the final message was "Um, never mind."

On Thu the 21st they e-mailed me the name of my processor along with a bunch of papers to sign/return. They had the wrong interest rate and points on the paperwork. We e-mailed back & forth, they admitted their oversight, we straightened out the numbers, and that night I cranked up the scanner. They claim they can close by 29 Nov, but our mortgage is only about 40% of the home's appraised value. Our last refi was only about 20 months ago so they also claim the house is eligible for an "expedited appraisal", whatever that means.

Today (Sat 23 Oct) we got our paperwork from the local title company. I'll send that in Monday and then e-mail the PenFed processor (who still hasn't acknowledged receipt of my previous paperwork) that we've sent in the title company's paperwork.

When we did a PenFed HELOC in 2008 they had a bunch of strange notary instructions. Our Hawaii notary did what she always does, and the paperwork bounced right back at us. The second time I made her follow PenFed's instructions, while agreeing with her that it didn't conform to Hawaii state law and was pretty redundant/stupid besides, but the paperwork went through. Hopefully that won't be an issue this time.
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