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refinance AGAIN??
Old 05-25-2010, 09:46 AM   #1
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refinance AGAIN??

PenFed 15yr fixed is 4.25% with 0 points and 1% origination fee....and rates may continue to fall further with the global markets in the coming weeks.

I've currently got a pretty good 4.625% 15 year note thru them with 14 yrs remaining. At the time I thought I had gotten the deal of a lifetime but now I'm starting to wonder if (or at what rate) I should refinance again.

Anyone else starting to consider?
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Old 05-25-2010, 10:09 AM   #2
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I've currently got a pretty good 4.625% 15 year note thru them with 14 yrs remaining. At the time I thought I had gotten the deal of a lifetime but now I'm starting to wonder if (or at what rate) I should refinance again.

Anyone else starting to consider?
Great rates-Makes me wonder about the state of the real estate market.

Any time I could lower my monthly payment it was worth it. You gotta do the math. Depending on you age, the amount, and the 1% origination. I always liked the longer term loans. The lower monthly payments put extra money in my pocket to invest.
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Old 05-25-2010, 10:22 AM   #3
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For those of us who have the Pen Fed 5/5 ARM, my understanding is that if you are willing to pay 1% of the outstanding balance they will reset your interest rate for a new 5 year period at the current going rate, although since this isn't a new loanthe remaining life of the loan does not change (i.e. if you are 2 years into a 30 year loan, you now have a 28 year loan with the new rate locked for 5 more years). Don't think they do similar on the fixed loans, but might be worth asking.
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Old 05-26-2010, 01:33 AM   #4
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I bet we refinanced on the same day...your loan sounds a lot like mine! :-)

Personally, I'm pretty happy with my current loan. I think the only way I will refinance is if my salary goes up over the next couple of years and interest rates stay as low as they are now. In that case I might look at a 10 year fixed.

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Old 05-26-2010, 10:15 AM   #5
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My thinking is if it will save you money..... do it...

How many months for payback on the 1%
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Old 05-26-2010, 10:27 AM   #6
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My thinking is if it will save you money..... do it...

How many months for payback on the 1%
None for me. I have the same rate they are offering now. But if you have a 5% rate on the 5/5, looks like a no-brainer.
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Old 05-26-2010, 11:32 AM   #7
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Yes, so far when I do the math it appears that it can save me $8-10k in lending costs (after the closing costs wrapped in) across the life of the loan, assuming we stay in the house for its entire duration.

So similar to what 2Cor521 said, I'm not sure that's very compelling just yet if sticking with a 15 year. When I did the last refinance we were saving $60-70k by getting a better rate and moving from a 30year to 15 year note. I probably need rates to go another 0.25 point lower to help motivate me or switch to a different product at some point.

But all in all I'm happy with our current mortgage. Maybe I'm just getting greedy
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Old 05-26-2010, 11:42 AM   #8
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I am keeping my fixed 4.75 for 30 years... its a great deal and I am not going to do much better that will save me a large amount of money...
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Old 05-26-2010, 11:57 AM   #9
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I am keeping my fixed 4.75 for 30 years... its a great deal and I am not going to do much better that will save me a large amount of money...

I am in your boat... but with a 4.5%.... I will not be paying this one down as I think I should be able to earn more over time...
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Old 05-28-2010, 10:20 AM   #10
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For those of us who have the Pen Fed 5/5 ARM, my understanding is that if you are willing to pay 1% of the outstanding balance they will reset your interest rate for a new 5 year period at the current going rate, although since this isn't a new loanthe remaining life of the loan does not change (i.e. if you are 2 years into a 30 year loan, you now have a 28 year loan with the new rate locked for 5 more years). Don't think they do similar on the fixed loans, but might be worth asking.
Just spoke with PenFed - thanks for the tip - I couldn't find this info on their site. Actually, for the 5/5 ARMs, they charge .5% of the outstanding balance. They are backed up about 3 weeks, so I hope the rates go down more and not up
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Old 05-31-2010, 01:54 PM   #11
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I'm all about the no cost refi. I did this a year and a half ago and brought my rate down from 6% to 5.25%. I called my bank up last week, and they said I could get a 30 year, no cost at 4.75% so I did it again. If rates continue to fall, I'll do it again. It super easy and doesn't cost a dime (the bank picks up all of the fees). Granted the rate might be slightly higher than paying closing costs and paying down points, but I think it's worth it.
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Old 06-24-2010, 10:42 AM   #12
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BUMP.

Ok, so now the 15 yr PenFed is down to 4.0%. The payback period is 34 months if I wrap in the 1% closing costs. Total savings if we stay in the house for 15 yrs is $14k.

Sigh. Decisions, decisions. Or maybe it's time to invest some money into the backyard that is eventually going to need it for the kids anyway....
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Old 06-24-2010, 11:19 AM   #13
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BUMP.

Ok, so now the 15 yr PenFed is down to 4.0%. The payback period is 34 months if I wrap in the 1% closing costs. Total savings if we stay in the house for 15 yrs is $14k.

Sigh. Decisions, decisions. Or maybe it's time to invest some money into the backyard that is eventually going to need it for the kids anyway....
If you can afford it... sounds like a no brainer to me...


(afford is cash flow... I did not go back to see the OP, what you owe etc. etc.)
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Old 06-24-2010, 12:50 PM   #14
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With mortgage rates at historic lows, it seems like a great time to refinance.

Calculated Risk: 30 Year Mortgage Rates fall to Record Low
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Old 06-27-2010, 12:49 AM   #15
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I thought PenFed won't refinance their own loans?
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Old 06-27-2010, 07:39 AM   #16
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I thought PenFed won't refinance their own loans?
They do.
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Old 06-27-2010, 10:15 AM   #17
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Ok, so now the 15 yr PenFed is down to 4.0%. The payback period is 34 months if I wrap in the 1% closing costs. Total savings if we stay in the house for 15 yrs is $14k.
We always refinance if we're staying in the house for longer than the payback period.
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Old 06-27-2010, 10:43 AM   #18
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They do.
Interesting. Maybe it depends on the loan...a relative has a PenFed re-financed mortgage and was told they could not re-finance again with PenFed.
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Old 06-27-2010, 12:38 PM   #19
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Sounds like a good thing to do if you plan to stay in the house for the length of the payback. 4% sounds very attractive.

My mortgage is now paid off, but I was able to refinance twice through Wells Fargo and each time reduced the interest rate and term of the mortgage. They offered no cost refinancing which I was able to do online. A close at home package was sent to me which I had to sign and get notarized and send back. It was a no brainer for me both times.
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Old 06-27-2010, 04:33 PM   #20
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Interesting. Maybe it depends on the loan...a relative has a PenFed re-financed mortgage and was told they could not re-finance again with PenFed.
What state are they in

My sister was refinancing with PenFed.. (for the 1st time with them)... but after the paperwork was done and the funding sent on... someone noticed that she had already had the loan refinanced... so the loan was considered something else here in Texas and PenFed would NOT do that... a first refinance was OK, the second one not...
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