1.99% Home Equity Loan from Pentagon Federal Credit Union (PenFed) with NO Closing Costs!

Damn, I already have a loan with PenFed, but did my home equity locally to expedite building....

Anyways, I owe 17,428.81 ....at %3.99 .....would it make much sense for me to contact PenFed at %1.99? We have only paid for about 10 mos. so far. out of 60.

Is it fixed rate?

Definitely going to check this out. Thanks!

Quote from thecalip : What exactly is the different between a home equity loan and home equity line of credit? My assumption is the loan is you take it out right away. The line of credit is available to you when you need it?

That sums it up. HELOC only assess intererest on what you take out, AND you can take out, repay, and take back out. Loan is just that -- a loan. A lump sum that acrues interest charges starting the moment you take the $$$.

Quote from no_ron_paul : I smell a scam...

From PenFed? Only if their system was hacked & they didn't realize it yet...

Quote from tomekolodziej : Is it fixed rate?

Probably not. Line of Credit rates are usually adjustable and are tied to Prime.

Quote from Boomancini : Probably not. Line of Credit rates are usually adjustable and are tied to Prime.

Hi, just to clarify, this is a HEL, not a HELOC. The 1.99% is a fixed rate for five years.

Why does this seem too good to be true?

I have a remaining balance of $56K on my mortgage @4.5% with an estimated home value of over $160K. I've wanted to refi to get the lower interest rates but the closing costs usually sour the deal enough to not make it worth the trouble... could I take out this home equity loan at 1.99%, pay off the rest of my mortgage and be done with it? I'd much rather pay off this much better looking 1.99% than 4.5%. Is my logic flawed or what?

Quote from conquistadorst : Why does this seem too good to be true? I have a remaining balance of $56K on my mortgage @4.5% with an estimated home value of over $160K. I've wanted to refi to get the lower interest rates but the closing costs usually sour the deal enough to not make it worth the trouble... could I take out this home equity loan at 1.99%, pay off the rest of my mortgage and be done with it? I'd much rather pay off this much better looking 1.99% than 4.5%. Is my logic flawed or what?

makes sense to me!

Quote from dorkino : LOL @ home equity. Right...

someone sounds really bitter about their poor timing in the past

Quote from no_ron_paul : I smell a scam...

you must be new to slickdeals

Almost a page in and no Dave Ramsey reference yet? good or bad.

NEW RECORD!

.... well I guess not since I mentioned it..bummer.

Quote from conquistadorst : Why does this seem too good to be true? I have a remaining balance of $56K on my mortgage @4.5% with an estimated home value of over $160K. I've wanted to refi to get the lower interest rates but the closing costs usually sour the deal enough to not make it worth the trouble... could I take out this home equity loan at 1.99%, pay off the rest of my mortgage and be done with it? I'd much rather pay off this much better looking 1.99% than 4.5%. Is my logic flawed or what?

if you can't even figure out whether or not this makes sense assuming you qualify why in the world did you take out a mortgage in the place first?

no wonder the sub prime crisis happened, people borrowed without understanding what they were doing

FYI for first timers: you need very good credit to qualify for a loan from these guys

Re-fied two places through PenFed no cost loans. Both went seamlessly. Highly recommend!

Quote from GreatDeals4Me2 : Has anyone ever used this that can chime in on this in more detail? I have student loans to pay that are currently out of this world at 6.8% and would love to get in on this to lower the interest rate significantly. Any help/advice would be greatly appreciated. Thanks!!!

If you are married, your student loan will become a joint debt if you convert the student loan to a home equity loan. Good I suppose if you want your partner to share in your student loan debt (and not necessarily know it!)