PenFed Lowers Mortgage Rates Again! 5/5 2.75%, 30 Yr 3.375% (Limited Time Offer)

Just my 2c here.

I was able to get in on this 'deal' but the closing process with the settlement company was rushed and unsatisfying.

The timeline was as such,

1) on 10/25 we called to ask what the status was, the PF rep said it was in the final stages and we should be closing within the next 7-10 business days, so far so good.
2) on 10/26 the settlement company call and needed us to close on 10/27 so they can get the paperwork out prior to 11/1. Less than 24hours notice, never had that before tried to postpone to 10/30 but they stated they needed a few days to disburse the funds. Feeling a bit rushed but went along with it.
3) On 10/27 we closed but with a notary public and not with the settlement company because they didn't have an opening on the 27th at their office during regular business hours. there was an issue on the HUD1 but it seems like everyone left for the day at the settlement office so we sent off a few emails and asked them to contact us if there are any issues. That proceeding Monday and Tuesday Sandy happened but here in VA we didn't get hit too hard but for some reason the settlement company did not process the disbursements even though they were open. We didn't get a call or any email so we presumed all went smoothly.
4) On 10/31, I had to call the settlement comp because of the money owed to me did not transfer via ACH yet, and that's when they told me there was an error on the HUD1 and I had to go in and clear things out. Now getting PO'ed.
5) Finally on 11/5, the funds were disbursed to the Wells Fargo.

So basically I got screwed out of a few days of interest because someone, somewhere wanted to process the loan before it was ready. HUD1 mistake was so obvious I couldn't believe anyone didn't catch on. In the end it just bad business practices, we could've easily settled on 10/30 without any rush but someone wanted to make their quota and books look better and screwed the consumer.

Quote from fangtl : Just my 2c here. I was able to get in on this 'deal' but the closing process with the settlement company was rushed and unsatisfying. The timeline was as such, 1) on 10/25 we called to ask what the status was, the PF rep said it was in the final stages and we should be closing within the next 7-10 business days, so far so good. 2) on 10/26 the settlement company call and needed us to close on 10/27 so they can get the paperwork out prior to 11/1. Less than 24hours notice, never had that before tried to postpone to 10/30 but they stated they needed a few days to disburse the funds. Feeling a bit rushed but went along with it. 3) On 10/27 we closed but with a notary public and not with the settlement company because they didn't have an opening on the 27th at their office during regular business hours. there was an issue on the HUD1 but it seems like everyone left for the day at the settlement office so we sent off a few emails and asked them to contact us if there are any issues. That proceeding Monday and Tuesday Sandy happened but here in VA we didn't get hit too hard but for some reason the settlement company did not process the disbursements even though they were open. We didn't get a call or any email so we presumed all went smoothly. 4) On 10/31, I had to call the settlement comp because of the money owed to me did not transfer via ACH yet, and that's when they told me there was an error on the HUD1 and I had to go in and clear things out. Now getting PO'ed. 5) Finally on 11/5, the funds were disbursed to the Wells Fargo. So basically I got screwed out of a few days of interest because someone, somewhere wanted to process the loan before it was ready. HUD1 mistake was so obvious I couldn't believe anyone didn't catch on. In the end it just bad business practices, we could've easily settled on 10/30 without any rush but someone wanted to make their quota and books look better and screwed the consumer.

Ask for a refund of some sort to compensate you for your overpaid interest and threaten to file a complaint with the RESPA office.

Quote from rajlovermaster : How much is the closing cost and rate u got in the end ????

Rate: 3.25%
Closing credit for 800 credit score and 75% LTV: $3970 (it covered closing costs and escrow)
Closing credit for 800 credit score and 80% LTV: $3200 (when i applied i mentioned 80% LTV but appraised for 75% so they increased the credit)

I will post Closing costs from HUD later.

Edited to post the closing costs:
Recording fee: 60
Settlement fee: 970
Appraisal: 400
Credit report: 8.25
flood cert: 11
Appraisal review: 100
Total: 1549.25

other charges are for escrow and interests.

Quote from fangtl : Just my 2c here. I was able to get in on this 'deal' but the closing process with the settlement company was rushed and unsatisfying. The timeline was as such, 1) on 10/25 we called to ask what the status was, the PF rep said it was in the final stages and we should be closing within the next 7-10 business days, so far so good. 2) on 10/26 the settlement company call and needed us to close on 10/27 so they can get the paperwork out prior to 11/1. Less than 24hours notice, never had that before tried to postpone to 10/30 but they stated they needed a few days to disburse the funds. Feeling a bit rushed but went along with it. 3) On 10/27 we closed but with a notary public and not with the settlement company because they didn't have an opening on the 27th at their office during regular business hours. there was an issue on the HUD1 but it seems like everyone left for the day at the settlement office so we sent off a few emails and asked them to contact us if there are any issues. That proceeding Monday and Tuesday Sandy happened but here in VA we didn't get hit too hard but for some reason the settlement company did not process the disbursements even though they were open. We didn't get a call or any email so we presumed all went smoothly. 4) On 10/31, I had to call the settlement comp because of the money owed to me did not transfer via ACH yet, and that's when they told me there was an error on the HUD1 and I had to go in and clear things out. Now getting PO'ed. 5) Finally on 11/5, the funds were disbursed to the Wells Fargo. So basically I got screwed out of a few days of interest because someone, somewhere wanted to process the loan before it was ready. HUD1 mistake was so obvious I couldn't believe anyone didn't catch on. In the end it just bad business practices, we could've easily settled on 10/30 without any rush but someone wanted to make their quota and books look better and screwed the consumer.

Amerisave told 2 of my friends in advance about the closing date but they sent the HUD only few hours before closing even though the rule says it has to be sent 1 day before closing. Their loan was closed in 45 days. Another friend and mine took 60 days and we got HUD in advance. All of our funding date were after a week (5 business days) from closing dates. It is not a big deal because interest rate is calculated from the fund date.

What was the actual fund date? There is a wait period of 3 business days. Also, it usually not always processed on the same date by the receiving bank. So, u may end up paying interest for 2 days (fund date and payoff processed date). If the funding did not happen on the specified date, settlement company will refund the additional interest.

Edit:
They probably rushed because the payoff they received might be expiring or calculated based on that date. For me they added 30 days of interest to the payoff which I will get back anyways.

I have applied for this loan in Sept and it still hasn't closed.

Loan officer does not respond to emails or voice mail.

I don't know for sure, but it seems like there might be some loan agents from PenFed posting on this board? Like a bit of advertisement going on.

As of today - rates are definitely lower then when this PenFed deal started
http://www.mortgagenewsdaily.com/mortgage_rates/

Do yourself a favor if you have not closed yet - shop around and then find out where you stand with PenFed (how much you would owe if you walked away) I bet you would save money if you did

http://www.zillow.com/mortgage-rates?

Here's what Penfed offered me in the last minute (for a good 1 and half month since my initial application, there was virtually NO communication between the loan processor and me. All emails and phone calls were ignored), about 15 days away from the supposed closing date (which I set exactly 2 months from the initial application date):

"Penfed can only approve your refinance mortgage application if you agree to take out a min $10k HELOC at the current rate of 5% with Penfed to pay off your other loans. Please note that the HELOC rate can and will change and will not be finally determined til the HELOC is actually closed and finalized."

Penfed isn't as great as it used to be, like 3 years ago. They like to play "Bait N Switch" game this time around. Advertise the low rate to lure you in first. Then make you wait a month or so, giving you the impression your loan is doing OK (with the colorful pre-approval online process when you submit the application. EVERYONE gets approved. They do that because they know they gonna use the HELOC bait to switch later and if you refuse to go along, they will charge all those fees, ie. application fee, appraisal fee (Penfed was very quick to send someone out to your house for the appraisal after the online initial application, 3 business days to be exact).

You've been warned!

My 60-day rate lock ended on Dec. 1 and I tried to call Penfed to relock my rate at the lower 3.125% but the the rep said they just extended my original rate (3.375%) until the refinance closes. I'm a little frustrated that they won't relock at the lower rate. Is that a normal practice with lenders?

Quote from Elfear : My 60-day rate lock ended on Dec. 1 and I tried to call Penfed to relock my rate at the lower 3.125% but the the rep said they just extended my original rate (3.375%) until the refinance closes. I'm a little frustrated that they won't relock at the lower rate. Is that a normal practice with lenders?

Because they know most people will not walk away

Find out EXACTLY how much you would owe them right now to walk away and then shop for a new rate. Do the math and see if it is worth it. I started with PenFed and ended up with First Financial - very happy, good communication, 29 days from start to finish

Rates are lower now than they were when this deal first started. You should be able to do better. I am not an expert - but it has been my experience that all you would be out is the application fee, appraisal fee and a credit check fee. I don't think your responsible for the other fees (title insurance, etc) unless the loan actually closes - call and ask, or at least put pressure on them that your walking

Quote from Elfear : My 60-day rate lock ended on Dec. 1 and I tried to call Penfed to relock my rate at the lower 3.125% but the the rep said they just extended my original rate (3.375%) until the refinance closes. I'm a little frustrated that they won't relock at the lower rate. Is that a normal practice with lenders?

When the rate lock period expires, the next rate lock can go either way, depending on the prevailing market rate ATM. If Penfed refuses to give you the lower rate, walk away. Otherwise, Penfed can drag on your application however long they want, knowing the interest rate fluctuation is irrelevant for them in regards to your particular case.

My family applied for a 15 YR refinance with PenFed the first week in September, and just closed this past week. It has been frankly a nightmare.

We had three processors. When we told the first processor we were stil considering our options for the settlement agent, but would be open to using theirs, processor #2 gets the file and submits the title search anyway! Processor #2 goes on vacation for a few weeks (without informing me), and processor #3 quotes me a significant penalty for changing settlement agents, and informs me my closing will be delayed if I don't go with them (scheduled for a week later), but guarantees me that title costs won't exceed the GFE - in writing. This is mid-October.

The closing date then gets pushed back two weeks. I'm told their title company is backed up. How honest of them to leave that out. The closing date gets pushed back another two weeks each twice - it's now the end of November. The title company finally clears the title after our constant calls / e-mails.

We receive the HUD 30 minutes before closing, and the settlement agent cancels on us 10 minutes prior to closing since someone decided to go home early. The HUD shows about a $200 increase in title costs from the GFE, and settlement fees and title insurance costs in excess of the allowable charges in NJ (it's regulated here). I point these out, and they simply move the charges from one place to another to keep the same/increased title costs out-of-pocket. They refuse to honor the written commitment to not exceed the GFE, and e-mail this response in the MIDDLE of closing on the new date. The HUD actually changed while closing. They purposely leave the settlement location as their office in VA despite the fact it's happening in NJ, despite our insistence to change that. We had invested too much at this point to walk away.

At the end of the day, my family got a great rate from refinancing a mortgage at an interest rate greater than 5%. However, we advise those considering PenFed to stay away. We'll be probably filing complaints, but not too optimistic we can get anything out of it.

Quote from NotReal : Because they know most people will not walk away Find out EXACTLY how much you would owe them right now to walk away and then shop for a new rate. Do the math and see if it is worth it. I started with PenFed and ended up with First Financial - very happy, good communication, 29 days from start to finish Rates are lower now than they were when this deal first started. You should be able to do better. I am not an expert - but it has been my experience that all you would be out is the application fee, appraisal fee and a credit check fee. I don't think your responsible for the other fees (title insurance, etc) unless the loan actually closes - call and ask, or at least put pressure on them that your walking

Quote from DQue : When the rate lock period expires, the next rate lock can go either way, depending on the prevailing market rate ATM. If Penfed refuses to give you the lower rate, walk away. Otherwise, Penfed can drag on your application however long they want, knowing the interest rate fluctuation is irrelevant for them in regards to your particular case.

Thanks for the advice guys. I called and spoke with my actual mortgage adviser and she said it was company policy to just keep extending the original rate. I checked around and unfortunately the closing costs would be slightly higher going with another lender so I just settled for paying the rate protection fee and dropping my rate a bit. Originally I was at 3.25% with 0.625 discount points and now I'm at 3.125% with 0.625 rate protection points.

Quote from RobotsRock : My family applied for a 15 YR refinance with PenFed the first week in September, and just closed this past week. It has been frankly a nightmare. We had three processors. When we told the first processor we were stil considering our options for the settlement agent, but would be open to using theirs, processor #2 gets the file and submits the title search anyway! Processor #2 goes on vacation for a few weeks (without informing me), and processor #3 quotes me a significant penalty for changing settlement agents, and informs me my closing will be delayed if I don't go with them (scheduled for a week later), but guarantees me that title costs won't exceed the GFE - in writing. This is mid-October. The closing date then gets pushed back two weeks. I'm told their title company is backed up. How honest of them to leave that out. The closing date gets pushed back another two weeks each twice - it's now the end of November. The title company finally clears the title after our constant calls / e-mails. We receive the HUD 30 minutes before closing, and the settlement agent cancels on us 10 minutes prior to closing since someone decided to go home early. The HUD shows about a $200 increase in title costs from the GFE, and settlement fees and title insurance costs in excess of the allowable charges in NJ (it's regulated here). I point these out, and they simply move the charges from one place to another to keep the same/increased title costs out-of-pocket. They refuse to honor the written commitment to not exceed the GFE, and e-mail this response in the MIDDLE of closing on the new date. The HUD actually changed while closing. They purposely leave the settlement location as their office in VA despite the fact it's happening in NJ, despite our insistence to change that. We had invested too much at this point to walk away. At the end of the day, my family got a great rate from refinancing a mortgage at an interest rate greater than 5%. However, we advise those considering PenFed to stay away. We'll be probably filing complaints, but not too optimistic we can get anything out of it.

Wow, that's just a horrible experience. Thanks for sharing. If your claim is true, then the biz motto of Penfed would prob be:

"If you don't leave us after so many screw-ups, then there's something wrong with your head!"