 |
I missed the PenFed firesale.....
01-29-2008, 09:43 AM
|
#1
|
Full time employment: Posting here.
Join Date: Feb 2006
Posts: 599
|
I missed the PenFed firesale.....
I didn't pull the trigger on the 15 yr, 4.75% rate last week due to my normal hand-wringing, and now I'm wondering if/when it will get back down that far again.
Any crystal balls out there?
Why did the rates shoot back up to 5.5% so quickly? Did they just get too many applications and didn't need any more business maybe?
|
|
|
 |
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!
|
01-29-2008, 09:54 AM
|
#2
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: No Country for Old Men
Posts: 47,520
|
Quote:
Originally Posted by cardude
Any crystal balls out there?
|
Nope. Mine aren't.
__________________
Numbers is hard
Retired in 2005 at age 58, no pension
|
|
|
01-29-2008, 09:59 AM
|
#3
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
|
Watch the bond market carefully, especially 10 year treasury rates. When Pen Fed was offering those rates, bond yields moved very sharply lower when the pucker factor went to infinity amid the global equity sell-off. When the markets rebounded, bond yields shot back up, and mortgage rates followed. If you see bond yields drop again, you can expect to see a cheap deal on mortgages again.
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
|
|
|
01-29-2008, 10:04 AM
|
#4
|
Full time employment: Posting here.
Join Date: Feb 2006
Posts: 599
|
|
|
|
01-29-2008, 11:12 AM
|
#5
|
Dryer sheet wannabe
Join Date: Jan 2008
Location: Seattle
Posts: 14
|
So I'm going to be watching the Pen Fed rates to jump at the next oppertunity. Should I join beforehand? Also I was kind of looking at their website and I don't meet any of their requirments except for one where I can join if I give them a donation.
Everyone that is using Pen Fed are you in the military or did you also give a donation.
Thanks!
|
|
|
01-29-2008, 11:16 AM
|
#6
|
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: No Country for Old Men
Posts: 47,520
|
I'd vote yes to joining now. You'll have to pony up the $20 donation and put $5 ($10?) in a savings account, but that will let you pull the trigger quickly should rates drop again. Probably money well spent...and they offer some other good deals from time to time, like much better than average CD rates.
__________________
Numbers is hard
Retired in 2005 at age 58, no pension
|
|
|
01-29-2008, 11:46 AM
|
#7
|
Recycles dryer sheets
Join Date: Sep 2005
Posts: 101
|
If you join and put $5 to open an account don't use your credit card for the $5.
My credit card (Chase) called the $5 a "cash advance" and charged me an additional $10 transaction fee.
I assumed the $5 would be treated as a purchase, but it was not.
|
|
|
01-29-2008, 12:11 PM
|
#8
|
Recycles dryer sheets
Join Date: Jul 2007
Posts: 116
|
It looks like 10 year bond rates dropped a little bit today. Has anyone checked Pen Fed to see if mortgage rates changed?
|
|
|
01-29-2008, 12:17 PM
|
#9
|
Recycles dryer sheets
Join Date: Dec 2006
Posts: 427
|
You want bond prices to go up, so the yield goes down. Prices have gone down pretty good so far today.
Pen Fed 15yr 0 pts is 5.125
|
|
|
01-29-2008, 12:34 PM
|
#10
|
Dryer sheet wannabe
Join Date: Jan 2008
Location: Seattle
Posts: 14
|
Thanks for the help so far. I'll go ahead and join soon.
For anyone that has already refinanced with Pen Fed how much were the closing costs end up being? I need to refinance my current loan which I owe 285K.
Thanks all!
|
|
|
01-29-2008, 01:02 PM
|
#11
|
Recycles dryer sheets
Join Date: Dec 2006
Posts: 427
|
You need to go to the web site and enter you mortgage scenario.
Also, it's been mentioned on here about Navy Fed. They are offering 4.625 on a 15yr 0 pts. I think membership is pretty much restricted to military peeps, though.
|
|
|
01-29-2008, 01:14 PM
|
#12
|
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 JohnDoe
Also, it's been mentioned on here about Navy Fed. They are offering 4.625 on a 15yr 0 pts. I think membership is pretty much restricted to military peeps, though.
|
I just checked and the 4.625 rate for the 15 yr mtg has a 0.75% origination fee (but no discount points). Or you can have the origination fee waived for a .25% increase in interest rate. Not sure if NavyFed pays all closing costs like penfed.
|
|
|
01-29-2008, 03:14 PM
|
#13
|
Full time employment: Posting here.
Join Date: Apr 2006
Posts: 890
|
Quote:
Originally Posted by rando348
Thanks for the help so far. I'll go ahead and join soon.
For anyone that has already refinanced with Pen Fed how much were the closing costs end up being? I need to refinance my current loan which I owe 285K.
Thanks all!
|
We talked about closing costs quite a bit in this thread.
-CC
__________________
"There's those thinkin' more or less, less is more, but if less is more, how you keepin' score?
It means for every point you make, your level drops. Kinda like you're startin' from the top..." "Society" - Eddie Vedder
|
|
|
01-29-2008, 03:39 PM
|
#14
|
Thinks s/he gets paid by the post
Join Date: Jun 2006
Location: Boise
Posts: 4,922
|
FYI, PenFed has a ratewatch tool where they'll email you when rates hit a target you set. I haven't successfully used it, though, so I don't know if it's something you could rely on to watch for you.
I always shop around for mortgages, but almost always end up back with PenFed or USAA.
2Cor521
__________________
"At times the world can seem an unfriendly and sinister place, but believe us when we say there is much more good in it than bad. All you have to do is look hard enough, and what might seem to be a series of unfortunate events, may in fact be the first steps of a journey." Violet Baudelaire.
|
|
|
01-31-2008, 11:09 AM
|
#15
|
Recycles dryer sheets
Join Date: Dec 2006
Posts: 427
|
I'm considering doing the Penfed refi today. 15yr .875 points at 4.75.
I'll get money money back 2-1 on the point paid over the term.
|
|
|
01-31-2008, 11:11 AM
|
#16
|
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 JohnDoe
I'm considering doing the Penfed refi today. 15yr .875 points at 4.75.
I'll get money money back 2-1 on the point paid over the term.
|
Over the 15 year term? Sounds like an iffy proposition to me.
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
|
|
|
01-31-2008, 11:53 AM
|
#17
|
Recycles dryer sheets
Join Date: Dec 2006
Posts: 427
|
I'll have it paid off in under 11 yrs.
With my calculations, and paying what I'm paying now per month, I would save $1000 per 1/8 point decrease in my interest rate. My current rate it 6.5 (30 years).
So I pay $1023 for .875 points and decrease my rate by 2/8. Net savings over 11 years is about $1000.
Plus, if for some reason, I couldn't keep paying extra per month like I'm doing now, I would save a lot more with a quarter point rate reduction.
|
|
|
 |
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
Thread Tools |
Search this Thread |
|
|
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
|
|
|