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Old 09-30-2009, 07:02 PM   #1
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Pen Fed is now at 4% for their 5/5 ARM. Gonna git me one o them.
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Old 09-30-2009, 07:17 PM   #2
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Wells Fargo

Have you looked on wellsfargo.com? Their rates are 3.875 for a 5 year arm
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Old 09-30-2009, 07:28 PM   #3
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On the lending (vs. borrowing) side, I noticed that for some CDs PenFed has fallen behind NFCU on interest rates. For a while, PenFed was paying higher rates. And USAA FSB is looking pretty good right now on 5 year CDs, relatively speaking.
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Old 09-30-2009, 07:38 PM   #4
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Pen Fed is now at 4% for their 5/5 ARM. Gonna git me one o them.
How did I wake up in 2006?
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Old 09-30-2009, 08:08 PM   #5
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Have you looked on wellsfargo.com? Their rates are 3.875 for a 5 year arm
But that product is a 5/1 ARM that can adjust 5% upwards at the reset. Pen Fed's loan is a 5/5 that can only go up by 2% at the reset.
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Old 09-30-2009, 08:09 PM   #6
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How did I wake up in 2006?
Wish it really were. That way I would know to short the crap out of everything next year...
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Old 09-30-2009, 09:19 PM   #7
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Well, that was (relatively) painless. No doubt the fun starts with the appraisal, although the ~40% LTV, assets in excess of the loan amount, and extremely secure employer should make that a moot point.

edit: Oh yeah, and for the record, I elected to pay .25 point and get 3.875% for my first 5 years.
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Old 10-01-2009, 08:06 AM   #8
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What's the max. readjustment? For instance, can it go to 8% after 10 years? Or, 10% after 15 years?

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Old 10-01-2009, 10:47 AM   #9
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I'm seeing 4.5% today on the 5/5 arms at penfed. Did the rates go back up that quick?
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Old 10-01-2009, 01:48 PM   #10
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Apparently they did. I saw penfed's 4.0% with my own eyes yesterday by random, dumb luck. Then I noticed this thread, and started to think about it. But, alas, it's "gone". ...if it ever was.

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Old 10-01-2009, 06:12 PM   #11
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That one was like a hummingbird: here and gone. Very glad I jumped on it, though.

In case it comes back for another brief spell, the max adjust every 5 years is 2% and the cum max adjust is 5%.
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Old 10-04-2009, 11:19 AM   #12
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Wow Brewer - I am so impressed. Striking while the iron is hot! Congrats on the execution.

Audrey
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Old 10-04-2009, 01:45 PM   #13
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Wow Brewer - I am so impressed. Striking while the iron is hot! Congrats on the execution.

Audrey
Thanks, but not complete yet. Still have to close, although with a 90 day lock and very easily passing the qualifications I imagine it will be more annoyance than uncertainty.
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Old 10-05-2009, 04:34 PM   #14
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Just locked on a 30 year fixed at 4.875 with no costs. Rates sure are getting attractive again.
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Old 10-05-2009, 06:10 PM   #15
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Pen Fed is now at 4% for their 5/5 ARM. Gonna git me one o them.
Congrats on hitting what looks like the low water mark. Just curious on the rationale behind picking an ARM rather than a fixed-rate loan? With long-term rates being so low, it seems that that would be a safer pick long-term. I'm not criticizing the choice, just looking for some education; I may be looking to refi soon, myself.
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Old 10-05-2009, 06:46 PM   #16
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Congrats on hitting what looks like the low water mark. Just curious on the rationale behind picking an ARM rather than a fixed-rate loan? With long-term rates being so low, it seems that that would be a safer pick long-term. I'm not criticizing the choice, just looking for some education; I may be looking to refi soon, myself.
IIRC Brewer has a fairly reasonable mortgage balance and was on a short payoff schedule.

In a situation like that you're best to hit the lowest rate you can for 5-7 years. By the time that rate lock comes up you will have paid down enough principal that the rate isn't going to matter all that much.
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Old 10-05-2009, 07:44 PM   #17
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Congrats on hitting what looks like the low water mark. Just curious on the rationale behind picking an ARM rather than a fixed-rate loan? With long-term rates being so low, it seems that that would be a safer pick long-term. I'm not criticizing the choice, just looking for some education; I may be looking to refi soon, myself.
Saluki had it. I am 8.75 years away from killing my originally 15 year mortgage. Even in the worst possible scenario (rate adjusts upward to the max at the end of the initial 5 years) I still come out substantially ahead on the new mortgage. In all likelihood, the loan will be paid off entirely shortly after the scheduled reset. I also have more liquid assets than the mortgage balance.

If I were not on such a short time scale, I would not have picked an ARM. This product is also somewhat unique in that when the reset happens the rate will be fixed for another 5 years. That is a lot less risky than having the rate eligible to readjust every year after the initial 5years. The worst possible outcome over a 10 year span is a lot better for a 5/5 than a 5/1.
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