|
|
Penfed Mortgage Rates Very Low again
08-11-2010, 09:21 AM
|
#1
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2007
Posts: 7,746
|
Penfed Mortgage Rates Very Low again
In case you don't already have enough spam in your inbox, I'm here to help shill Penfed. Their rates on the 5/5 Adjustable Rate Mortgage are down to 3.75% with no points and no origination fee. You can buy it down further to 3.625% or 3.5% for .25 and 0.625 points, respectively.
In the past many closing costs were paid by Penfed. I don't see that listed on their web site right now specifically, but when you click "apply" the first page discusses "low closing costs". I paid $400-500 for my recent refinance with this product. Call to verify what they are offering. Either way, a pretty good deal.
I have this mortgage right now, and it should work very well for FIRE-seekers who are paying off their mortgage in the next 5 to 10 years. The rate adjusts up to 2% above the initial rate after five years.
You can do the math on it yourself, but this will likely beat many fixed rate mortgages over a 10 year period.
https://www.penfed.org/productsAndRa...tesListing.asp
__________________
Retired in 2013 at age 33. Keeping busy reading, blogging, relaxing, gaming, and enjoying the outdoors with my wife and 3 kids (8, 13, and 15).
|
|
|
|
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
|
08-11-2010, 12:51 PM
|
#2
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
|
Every time I think I am done refinancing...
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
|
|
|
08-11-2010, 01:16 PM
|
#3
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2007
Posts: 7,746
|
Quote:
Originally Posted by brewer12345
Every time I think I am done refinancing...
|
Just think, if this "deflation" thing ever takes shape like the doomsayers here constantly talk about (when they aren't talking about inflation), then we may be refinancing into 1% mortgages in a few years.
__________________
Retired in 2013 at age 33. Keeping busy reading, blogging, relaxing, gaming, and enjoying the outdoors with my wife and 3 kids (8, 13, and 15).
|
|
|
08-11-2010, 01:36 PM
|
#4
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
|
If it takes shape in a few years I will not have a mortgage to refinance any more.
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
|
|
|
08-11-2010, 02:25 PM
|
#5
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Oct 2005
Location: North Oregon Coast
Posts: 16,483
|
Quote:
Originally Posted by FUEGO
Just think, if this "deflation" thing ever takes shape like the doomsayers here constantly talk about (when they aren't talking about inflation), then we may be refinancing into 1% mortgages in a few years.
|
Which they will need to pay for the food, energy and health care inflation that far exceeds the stated inflation rate.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
|
|
|
08-11-2010, 10:54 PM
|
#6
|
Dryer sheet aficionado
Join Date: May 2010
Posts: 44
|
"Deflation" is a smokescreen thrown up so the Federal Govt can print trillions to inflate its way out of its debt.
|
|
|
08-12-2010, 11:18 AM
|
#7
|
Recycles dryer sheets
Join Date: Jan 2007
Posts: 131
|
15 yr fixed is 3.875 as well....but with 1% origination. i think when it hits 3.75 i'll have to pull the trigger and refinance yet again. boo hoo.
|
|
|
08-12-2010, 11:43 AM
|
#8
|
Moderator Emeritus
Join Date: Dec 2002
Location: Oahu
Posts: 26,860
|
Quote:
Originally Posted by brewer12345
Every time I think I am done refinancing...
|
Same here. This would be our ninth between two homes over the last decade.
I wonder if the Fed's recent announcement about buying more bonds is causing mortgage rates to sag even further. Our local low-interest-mortgage bank has been offering a 30-year fixed 4% for two points. This week it's down to 1.75 points. I'm not sure they're appreciative of the lessons their potential future customers are learning from this rate watch, but we're probably going to pull the trigger in September along with a million other mortgage owners.
__________________
*
Co-author (with my daughter) of “Raising Your Money-Savvy Family For Next Generation Financial Independence.”
Author of the book written on E-R.org: "The Military Guide to Financial Independence and Retirement."
I don't spend much time here— please send a PM.
|
|
|
08-12-2010, 07:42 PM
|
#9
|
Recycles dryer sheets
Join Date: Dec 2006
Posts: 479
|
I refi'd about 18 months ago 15 years at 4.5%. My balance is now under 100k so I don't think I'll save too much by any more refi's. Definitely nothing that charges a 1% origination fee.
|
|
|
08-13-2010, 06:01 AM
|
#10
|
Thinks s/he gets paid by the post
Join Date: Feb 2005
Posts: 2,032
|
Quote:
Originally Posted by brewer12345
Every time I think I am done refinancing...
|
I know... Just pulled the trigger on 4.375 no cost for 30 years.
|
|
|
08-13-2010, 06:47 AM
|
#11
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
|
Quote:
Originally Posted by saluki9
I know... Just pulled the trigger on 4.375 no cost for 30 years.
|
Actually, with a 123k mortgage at 3.875% that I am aggressively paying down, I may really be done refinancing. The marginal benefit is getting pretty skinny. I think that rates would have to go to 3% or less on my 5/5 or it to be worth another refi.
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
|
|
|
08-13-2010, 04:21 PM
|
#12
|
Full time employment: Posting here.
Join Date: Sep 2004
Posts: 607
|
Quote:
Originally Posted by JohnDoe
I refi'd about 18 months ago 15 years at 4.5%. My balance is now under 100k so I don't think I'll save too much by any more refi's. Definitely nothing that charges a 1% origination fee.
|
I refi'd to PenFed's 5/5 ARM about 4 months back and they didn't charge a origination fee. They stopped charging the 1% about 6-8 months I think.
Also, if PenFed still owns your loan then they'll only charge you 0.5% to modify the loan to the new rate. I have approx the same size loan at 4% and I'm making extra payments to pay it off in about 5 years. It doesn't make sense in my case since I would only save about 400 in interest over the 5 years when I take into account the 0.5% fee.
|
|
|
08-16-2010, 05:30 AM
|
#13
|
Thinks s/he gets paid by the post
Join Date: Feb 2005
Posts: 2,032
|
Quote:
Originally Posted by brewer12345
Actually, with a 123k mortgage at 3.875% that I am aggressively paying down, I may really be done refinancing. The marginal benefit is getting pretty skinny. I think that rates would have to go to 3% or less on my 5/5 or it to be worth another refi.
|
I'd happily give up my great rate for a 123k principal balance. Might consider a limb too
|
|
|
08-16-2010, 12:13 PM
|
#14
|
Recycles dryer sheets
Join Date: Jan 2007
Posts: 131
|
Quote:
Originally Posted by WanderALot
Also, if PenFed still owns your loan then they'll only charge you 0.5% to modify the loan to the new rate. I have approx the same size loan at 4% and I'm making extra payments to pay it off in about 5 years. It doesn't make sense in my case since I would only save about 400 in interest over the 5 years when I take into account the 0.5% fee.
|
I know I should just call in and ask, but does anyone know if this deal is just for the 5/5 ARM or if it also applies to fixed mortgages @ PenFed, too?
|
|
|
08-16-2010, 10:44 PM
|
#15
|
Full time employment: Posting here.
Join Date: Nov 2009
Location: VA
Posts: 923
|
Good time to buy or re-fi....4.375% 30-year fixed is incredible. There's no way rates will stay this low in the long run.
__________________
Disclaimer - I am an independent insurance agent. If the above message contains insurance-related content, it is NOT intended as advice, and may not be accurate, applicable or sufficient depending on specific circumstances. Don't rely on it for any purpose. I do encourage you to consult an independent agent for insurance-related advice if you have a question that is specific in nature.
|
|
|
08-17-2010, 12:12 PM
|
#16
|
Thinks s/he gets paid by the post
Join Date: Jan 2010
Location: 5-sided building
Posts: 1,184
|
I just called to get on the list for reducing my rate. Currently I'm on a 5/5 at 4.125%, looking to pay the .5% fee to reduce it to 3.75%. My balance is about $300K, so the fee will be $1500, giving me a break even point in 25 months.
Here's how it works:
1- Call their mortgage servicing at 800-585-9055, and tell them you are interested. Then you are on the list using today's rate, and they will call you back. He told me right now it takes about 3 weeks.
2- If the rate goes up, no worries, you get the rate of the day you called. If it goes down, call them again for the lower rate. No additional fee, and you keep your place in "line."
3- When they call back, if you are still interested, they'll send you some paperwork and you send it back. He said no notary would be required.
4- Rate is now lower, and when it adjusts, it is from your new rate. For example, when mine adjusts, the most it can go up is to 5.75%.
I can't say enough good things about PenFed!
|
|
|
08-17-2010, 07:40 PM
|
#17
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2008
Location: No fixed abode
Posts: 8,765
|
I haven't looked into this yet, and I'm not (yet) a PenFed member, but this conversation is making me think about refinancing again. I'm curious though. We are retired, with no pension, no real income other than dividends and interest. We have plenty of money as far being able to pay off the mortgage at any time. But I'm wondering if we're going to be able to qualify again, in these new days of actually doing means testing. If I can get a 4.375% loan that's .5% better than what I currently have. About $120/month. It's real money, but I'd hate to have to jump through too many hoops (sorry Sarah ).
Another thing I'd like peoples opinion on. I can balance a checkbook, but I'm not a mathematician or anything. I'm trying to figure out at what point and level a mortgage is worth it to us. I'm carrying one because our house is pretty expensive even now, and having it 100% paid off is leaving a good chunk of money in non-liquid form. Also, having the mortgage deduction has helped keep us down in the 15% tax bracket last year, and probably for the next few years too, which will help with the Roth conversions.
So what I want to do is figure out how much the mortgage is costing us vs. how much it is saving us, and how much mortage is the sweet spot. I know I need to compare how much we get as a deduction vs. how much we are paying in interest, and I think I also need to consider how much we would be paying into the 25% bracket if we didn't have the deduction. I guess I also have to subtract out how much we are making in interest on the amount of the mortgage (negligible). Has anyone ever worked all this out, or (please, God) know of a site or calculator that will walk me through it? I'm keeping the mortgage under $400K so I can stay qualified for the best rates, and wouldn't mind decreasing it to cut down on what I have to come up with every year to pay it. Like I said, I'm looking for the sweet spot. If I can find it, it might make it worthwhile to go through the hassle of refinancing. Any ideas/help?
__________________
"Good judgment comes from experience. Experience comes from bad judgement." - Anonymous (not Will Rogers or Sam Clemens)
DW and I - FIREd at 50 (7/06), living off assets
|
|
|
08-17-2010, 07:48 PM
|
#18
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,021
|
Quote:
Originally Posted by harley
So what I want to do is figure out how much the mortgage is costing us vs. how much it is saving us, and how much mortage is the sweet spot. I know I need to compare how much we get as a deduction vs. how much we are paying in interest, and I think I also need to consider how much we would be paying into the 25% bracket if we didn't have the deduction. I guess I also have to subtract out how much we are making in interest on the amount of the mortgage (negligible). Has anyone ever worked all this out, or (please, God) know of a site or calculator that will walk me through it? I'm keeping the mortgage under $400K so I can stay qualified for the best rates, and wouldn't mind decreasing it to cut down on what I have to come up with every year to pay it. Like I said, I'm looking for the sweet spot. If I can find it, it might make it worthwhile to go through the hassle of refinancing. Any ideas/help?
|
Harley, do a forum search on "pay off the mortgage early?" and I'm betting you'll find TONS of help.
__________________
Numbers is hard
|
|
|
08-17-2010, 08:41 PM
|
#19
|
Recycles dryer sheets
Join Date: Aug 2010
Posts: 83
|
Any online calculators that anyone would recommend for the "To re-fi or not to re-fi" question?
|
|
|
08-17-2010, 08:56 PM
|
#20
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,021
|
A Google search reveals dozens of calculators to determine the interest savings but I don't think I've ever seen one that attempts to also include the tax deduction and potential investment gain aspects. The variables probably make it too complex to easily quantify - which is also the reason there is no consensus on this forum as to the wisdom/folly of early mortgage payoff.
__________________
Numbers is hard
|
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Thread Tools |
|
Display Modes |
Linear Mode
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|