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09-30-2009, 06:02 PM
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#1
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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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Woop! Woop!
Pen Fed is now at 4% for their 5/5 ARM. Gonna git me one o them.
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"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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09-30-2009, 06:17 PM
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#2
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Dryer sheet aficionado
Join Date: Mar 2004
Posts: 27
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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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09-30-2009, 06:28 PM
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#3
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Thinks s/he gets paid by the post
Join Date: Jun 2002
Posts: 1,637
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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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friar1610
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09-30-2009, 06:38 PM
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#4
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Sep 2005
Posts: 5,381
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 Quote:
Originally Posted by brewer12345
Pen Fed is now at 4% for their 5/5 ARM. Gonna git me one o them.
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How did I wake up in 2006?
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09-30-2009, 07:08 PM
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#5
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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 artist59
Have you looked on wellsfargo.com? Their rates are 3.875 for a 5 year arm
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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.
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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09-30-2009, 07:09 PM
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#6
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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 . . . Yrs to Go
How did I wake up in 2006?
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Wish it really were. That way I would know to short the crap out of everything next year...
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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09-30-2009, 08:19 PM
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#7
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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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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.
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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10-01-2009, 07:06 AM
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#8
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Full time employment: Posting here.
Join Date: Apr 2006
Posts: 897
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What's the max. readjustment? For instance, can it go to 8% after 10 years? Or, 10% after 15 years?
-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
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10-01-2009, 09:47 AM
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#9
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Nov 2007
Posts: 7,746
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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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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).
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10-01-2009, 12:48 PM
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#10
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Full time employment: Posting here.
Join Date: Apr 2006
Posts: 897
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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.
-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
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10-01-2009, 05:12 PM
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#11
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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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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%.
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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10-04-2009, 10:19 AM
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#12
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,140
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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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10-04-2009, 12:45 PM
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#13
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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 audreyh1
Wow Brewer - I am so impressed. Striking while the iron is hot! Congrats on the execution.
Audrey
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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.
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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10-05-2009, 03:34 PM
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#14
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Thinks s/he gets paid by the post
Join Date: Feb 2005
Posts: 2,032
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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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10-05-2009, 05:10 PM
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#15
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Full time employment: Posting here.
Join Date: Sep 2006
Location: SoCal
Posts: 928
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Quote:
Originally Posted by brewer12345
Pen Fed is now at 4% for their 5/5 ARM. Gonna git me one o them.
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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.
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I can't complain, but sometimes I still do.
- Joe Walsh
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10-05-2009, 05:46 PM
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#16
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Thinks s/he gets paid by the post
Join Date: Feb 2005
Posts: 2,032
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Quote:
Originally Posted by ProspectiveBum
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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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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10-05-2009, 06:44 PM
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#17
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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 ProspectiveBum
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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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.
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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