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

Rokket 6,651 September 6, 2012 at 09:37 PM in Home & Home Improvement (11)
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Today I received an email from PenFed (Pentagon Federal Credit Union) touting new lower mortgage rates: "Limited-Time Offer -- PenFed Lowers Mortgage Rates AGAIN!"

The 5/5 adjustable rate mortgage is now just 2.75%, with no origination fees and PenFed paying closing costs up to $10K. (There's also the 5 year HEL with a 1.99% rate; the HEL rate is not new.)
https://www.penfed.org/55-Adjusta...-Mortgage/
https://www.penfed.org/Home-Equit...-Overview/

The 30-year fixed rate mortgage is now just 3.375%, with no origination fees (per fine print on the application page).
https://www.penfed.org/30-Year-Fixed-Mortgage/

PenFed used to charge a 1% origination fee on all fixed rate mortgages, but right now the 30-year fixed rate mortgage seems to be exempt!

There are many ways to join PenFed; for example, you can make a donation to the National Military Family Association. The PenFed website has further details: https://www.penfed.org/

704 Comments

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#61
Thanks for the info NotReal. I probably can't do anything until I reach 20% equity.
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#62
Quote from NotReal View Post :
We are pretty conservative... Although our home has lost probably 35% of it's value (money that we actually have in it) we still have above 20% equity even in todays market

You will probably NEVER be able to borrow money again this cheaply! (although I said that 2 years ago when I got my 3.75% rate, lol)

I can't imagine taking out a 5 year loan, not being able to sell 5 years from now and having to walk away....
Are you going to refinance? I have a similar dilemma. I just refinanced last year. 20years@3.875. I cant believe how low rates have gotten. I see the 20 year rates are the same as the 30 years =( 3.375

If I refinance now, I will save $150/month@ 20 year(36K).
But will add 1 more year of mortgage(~24K) + whatever loan costs

Since my rates are decent, I may wait for QE3 and then I will jump in.
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#63
Quote from xceebeex View Post :
Crap, I am in NY state so Title Insurance is not covered under the closing costs by PenFed. I really hate NY state.

Anyone have any idea how much title insurance would cost? I would be refinancing a little less than $70k. Any recommendations for where I should get some quotes? I don't remember where I got mine when I originally bought the house (or how much it cost).
Wondering about this as well. The wording for NY was a little confusing...
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#64
Quote from tqlla3k View Post :
Are you going to refinance? I have a similar dilemma. I just refinanced last year. 20years@3.875. I cant believe how low rates have gotten. I see the 20 year rates are the same as the 30 years =( 3.375

If I refinance now, I will save $150/month@ 20 year(36K).
But will add 1 more year of mortgage(~24K) + whatever loan costs

Since my rates are decent, I may wait for QE3 and then I will jump in.
I applied and will probably go through with it. You can make yourself sick watching mortgage rates. To me, there really is no rhyme or reason. You think the rates should go down because of something that effects the economy - lowering the prime, increased jobs, etc - but then the rates start moving back up.... (at least that has been my experience)

For info, I refi'd 2 years ago through Provident.

I am happy with their rate today and I locked. I don't expect any problems and it should be a very easy procedure. I end up saving $100 a month. Who knows when I would be able to sell my house for what I have actually into it - but I am thinking with a lower monthly mortgage payment, we could always consider renting it out and moving on....
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#65
If you already have money in Escrow with your current lender, is the usual process that you first give your new lender the amount for the new Escrow and then you wait for your previous lender to return the money in the old Escrow back to you, or can the money be "transferred" from one Escrow to the other?

Thanks
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#66
i'm currently in a 15 year 4.25% rate with wellsfargo for 3 years already. i'm paying extra towards my principle bi-weekly.

if i switch to pen fed's 10 year 2.625%, and pay the same amount (with extra towards principle) monthly . I'm paying my mortgage off 4 months LATER than wellsfargo. (not including closing cost)

How does that work??
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#67
Quote from lebedev View Post :
If you already have money in Escrow with your current lender, is the usual process that you first give your new lender the amount for the new Escrow and then you wait for your previous lender to return the money in the old Escrow back to you, or can the money be "transferred" from one Escrow to the other?
Answering my own question, Escrows are not transferable:
http://homeguides.sfgate.com/happ...-3350.html

Not sure why I didn't just google it in the first place.
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#68
Dang it! i just refi'ed at 3.75 last month!
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#69
Quote from mrgodai View Post :
i'm currently in a 15 year 4.25% rate with wellsfargo for 3 years already. i'm paying extra towards my principle bi-weekly.

if i switch to pen fed's 10 year 2.625%, and pay the same amount (with extra towards principle) monthly . I'm paying my mortgage off 4 months LATER than wellsfargo. (not including closing cost)

How does that work??
I think your bi-weekly payments has a lot to do with it. On top of your extra money you are paying with each payment, when you make bi-weekly payments (every two weeks) your actually also making an extra monthly payment each year. 52 weeks in a year, so 26 bi-weekly payments is the same as 13 monthly payments
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#70
You can join if you work for a Federal Contractor. Which I did...but they never validated that I did.
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#71
Quote from NotReal View Post :
I think your bi-weekly payments has a lot to do with it. On top of your extra money you are paying with each payment, when you make bi-weekly payments (every two weeks) your actually also making an extra monthly payment each year. 52 weeks in a year, so 26 bi-weekly payments is the same as 13 monthly payments
doing biweekly for the mortgage term would also lower your interest rate from to 2.625% like 2.45% or so , you can use bankrate.com biweekly calc. to check accurate amount..
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#72
the 5 year mortgage would be so sweet for me, currently owe only 42k on my house, but it's a 30 year mortgage (27 years left), my monthly payment with insurance/tax is $327 a month, with the 2.75% interest my payment would be about 930 dollars a month, but would be paid off in full in five years. Definitely will be considering it in the coming years.
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#73
Quote from Moocher View Post :
See below for my charges if I refinance: 30 yr conventional loan 3.375 rate actual 3.393 APR

Mortgages to be paid with this loan $XXX,000.00
Pentagon Federal Credit Union's origination charge $65.00
Your charge for this interest rate $0.00
Required services we select $379.36
Appraisal Fee $300.00
Credit Report $13.36
Flood Certification Fee $7.00
Tax Service Fee $59.00
Title services and lender's title insurance $1,385.50
Government recording charges $165.00
Transfer taxes $1,457.50
Initial escrow deposit $2,041.67
Your new loan amount ($XXX,000.00)
Estimated Cash Required at Closing $5,494.03

Need to confirm that there's no origination fee Penfed usually charged in the past.
thanx for the info
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#74
Quote from Roland Deschain View Post :
I haven't done the math but I'm pretty sure the answer is "no, not worth it."
what about:

Is it worth refinancing with a 330K loan @ 4.5% with a new 30 year @ 3.375%?

wave
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#75
Quote from exemplar View Post :
what about:

Is it worth refinancing with a 330K loan @ 4.5% with a new 30 year @ 3.375%?

wave
very very likely yes. BUt how much equity you have in yourhome could play a huge factor in total closing costs thereby affecting whether or not it's actually worth it.

but the difference between 3.375% and 4.5% is 100% grounds for looking into this thoroughly and doing the math and figuring it out.
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