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03-18-2008, 12:42 PM
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#201
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Thinks s/he gets paid by the post
Join Date: Jun 2005
Posts: 2,610
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Quote:
Originally Posted by brewer12345
Not sure if I quite have the brass cojones to do this, but a thought has crossed my mind: with the Fed whacking rates to beat the band and not about to reverse course any time soon, why not refi the mortgage onto a HELOC? Schwab offers a 70% LTV HELOC at prime minus 1%, which would be 5% right now (less if the Fed does what everyone seems to be expecting).
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Regarding the FED raising rates, (or not) course reversal will occur and very possibly much sooner than we might imagine... The Fed wants to turn around housing with as little pain on the inflation and falling dollar front as possible. Just as soon as we see the slightest sign housing is recovering the Fed will jump at the chance to raise. IMHO I would think that will happen about 12 months from now.
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03-18-2008, 03:06 PM
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#202
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2006
Location: west coast, hi there!
Posts: 8,809
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Saw this nice chart of what I think are mortgage rates that might appeal to some who are monitoring the situation: Bloomberg.com: Investment Tools
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03-19-2008, 08:34 AM
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#203
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Moderator Emeritus
Join Date: Dec 2002
Location: Oahu
Posts: 26,860
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Quote:
Originally Posted by brewer12345
Not sure if I quite have the brass cojones to do this, but a thought has crossed my mind: with the Fed whacking rates to beat the band and not about to reverse course any time soon, why not refi the mortgage onto a HELOC? Schwab offers a 70% LTV HELOC at prime minus 1%, which would be 5% right now (less if the Fed does what everyone seems to be expecting).
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That sounds like a great way to arb the interest rates.
What are the terms of the loan? Does it stop drawing after 10 years and require you to pay it back over the next 10?
NFCU shaved an eighth off their 30-year fixed-rate no-points 80% loan, but it's still 5.75% and .375% above our current rate. No change since the Fed meeting (yet).
I'm intrigued by this offer in NFCU's fixed-rate loan section: "Interest only payment options are available on 30 year products." But that's probably in its own class of interest rates.
__________________
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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.
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03-19-2008, 08:57 AM
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#204
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
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HELOC's mostly come in the 10 year draw, 15 year repayment flavor. But Pen Fed's is a 15 year draw, bullet maturity.
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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03-19-2008, 11:01 AM
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#205
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Recycles dryer sheets
Join Date: Dec 2006
Posts: 479
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That's strange...looks like Pen Fed changed their rates twice today.
Around 11am 15yr was
5.125 0
5.000 .25
4.875 .875
Now they have
5.250 0
5.125 .375
5.000 1.125
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03-19-2008, 11:07 AM
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#206
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2006
Location: Boise
Posts: 7,882
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Quote:
Originally Posted by JohnDoe
That's strange...looks like Pen Fed changed their rates twice today.
Around 11am 15yr was
5.125 0
5.000 .25
4.875 .875
Now they have
5.250 0
5.125 .375
5.000 1.125
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I think PenFed changes their rates once a day around lunch time. So most likely you'll see the second set of rates until tomorrow lunch time.
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.
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03-19-2008, 11:11 AM
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#207
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
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I am patiently waiting to see if the 5/5 ARM goes to 4.5% or so. Given how low treasury rates are and the news on the chains around Fannie and Freddy being loosened, its only a matter of time before mortgage spreads decline.
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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03-19-2008, 11:55 AM
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#208
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Recycles dryer sheets
Join Date: Jan 2008
Posts: 328
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Quote:
Originally Posted by JohnDoe
That's strange...looks like Pen Fed changed their rates twice today.
Around 11am 15yr was
5.125 0
5.000 .25
4.875 .875
Now they have
5.250 0
5.125 .375
5.000 1.125
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The other option of course would be to "buy down" the rate by paying more points.
__________________
Primary title "chief moron"
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03-19-2008, 03:07 PM
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#209
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Moderator Emeritus
Join Date: Feb 2005
Location: San Diego
Posts: 5,267
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Quote:
Originally Posted by brewer12345
I am patiently waiting to see if the 5/5 ARM goes to 4.5% or so. Given how low treasury rates are and the news on the chains around Fannie and Freddy being loosened, its only a matter of time before mortgage spreads decline.
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I know this would just be guessing, but how low do you think 15 year rates might go? I'm in a 20 year @ 5.125% so I don't think it will ever be worth it to refi, but I'm keeping my eyes open.
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03-19-2008, 03:17 PM
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#210
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
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Quote:
Originally Posted by laurencewill
I know this would just be guessing, but how low do you think 15 year rates might go? I'm in a 20 year @ 5.125% so I don't think it will ever be worth it to refi, but I'm keeping my eyes open.
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Sitting on the reaminder of a 15 year at 5% myself and wondering the same thing. I really don't know. Depends on whether the mortgage market ever heals. Hard to see treasuries much lower than where they are now, so I think this is mostly about spreads of mortgages over treasuries. I think spreads could drop 75BP, maybe more, but it would require the mortgage mess to come unstuck. As long as treasuries didn't sell off enough to offset the spread drop, mortgage rates could go down a good bit.
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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03-19-2008, 03:58 PM
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#211
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Thinks s/he gets paid by the post
Join Date: Aug 2007
Posts: 1,224
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We are about to close (hopefully) with a Pen Fed 15yr @ 5% thanks to the early posts in this thread so not likely to refi again unless rates really tumble.
DD
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03-19-2008, 07:23 PM
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#212
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Recycles dryer sheets
Join Date: Dec 2006
Posts: 479
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I'm sitting on a 30 yr @ 6.5, and I want to get under 5 on a 15yr.
I was about to call pen fed at lunch today to see what 3 points would get me, but they changed the rates.
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03-19-2008, 09:14 PM
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#213
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Full time employment: Posting here.
Join Date: Mar 2007
Posts: 577
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I closed with Penfed a couple weeks ago at 15yr fixed 4.625% I think the rate was only that low for a day. I did the app at night and the next morning I had an email saying thanks all you need to do now is choose when to lock your rate (which I thought I did the night before) I replied to lock now and a few hours later the rate was climbing.
__________________
I highjacked a rainbow and crashed into a pot of gold - Bon Jovi
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03-20-2008, 05:48 AM
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#214
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Recycles dryer sheets
Join Date: Dec 2006
Posts: 479
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Yea, it went from 4.625 to 5.125 the next day. That's an awesome rate.
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09-11-2009, 02:08 PM
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#215
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Recycles dryer sheets
Join Date: Apr 2005
Posts: 62
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Hi folks. Just thought I would mention this again as PenFed is currently offering 30 yr fixed at 4.875 with 0 points.
I pulled the trigger and submitted my application. I'm just hoping the appraisal does not come in so low that my LTV is > 80%. We've lost some value in the last couple years. Not sure how much though.
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09-11-2009, 03:36 PM
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#216
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
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I am thinking that I will be watching Pen Fed's 5/5 rate like a hawk. If it dips to 4.25% or less I will almost certainly pull the trigger.
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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09-12-2009, 05:19 AM
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#217
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Oct 2006
Posts: 7,733
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Is anybody watching PenFed's CD rates? When they go back up to 6%. Somebody please post that ....
Right now I have 1 CD at 6% 1 HELCO at 4.99% and another CD at 4%. Seems like PenFed and I are even in the interest rate department.
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09-12-2009, 10:47 AM
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#218
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Recycles dryer sheets
Join Date: Jan 2007
Posts: 131
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Quote:
Originally Posted by BristolBane
Hi folks. Just thought I would mention this again as PenFed is currently offering 30 yr fixed at 4.875 with 0 points.
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Note that PenFed is still charging a 1% origination fee for all fixed mortgages....they previously didn't do this. These are still are great rates, though.
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09-12-2009, 01:48 PM
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#219
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Moderator Emeritus
Join Date: Dec 2002
Location: Oahu
Posts: 26,860
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Quote:
Originally Posted by clifp
Is anybody watching PenFed's CD rates? When they go back up to 6%. Somebody please post that ....
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I'm gonna be crying when my 6.25% CD matures in January...
__________________
*
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.
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09-12-2009, 02:35 PM
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#220
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Recycles dryer sheets
Join Date: Sep 2009
Location: Two Harbors
Posts: 54
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W/O reading this entire thread...is PenFed a or THE best source for online CDs and Mortgage offerings??
I am considering refinancing my 15 yr 5.375% mtg and I also have a 10 year fixed income ladder with mostly Bank CDs averaging 5% return. I am in need of a 7 year maturity and a 10 year maturity and have been waiting/looking for some better rates. My anticipation is that CD rates will go up vs down in the next couple of years.
My 15 year mortgage has less than 10 years and I am open to some of the lower rate options...say 10/1...w/additional principal payments to amortize over the reduced interest rate 10 year period. That creates lower/lowest? rate...but accomplishes mortgage payoff at about the same time as my current 15 year...which is my general goal.
I could payoff right away...but I like the discipline of using current earnings to pay down mtg...vs. reducing investment assets. I am self-employed...somewhat less than 50% of my time...trying not to reduce investment assets for another 4-5 years. Consulting practice doing pretty well...withdrawn little/nothing for 7+ years of "flexible" working arrangement
Thanks...1st post...Tom R in Two Harbors, Mn
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