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PenFed 15/15 ARM 3.000% 0 Points 0% Origination $10K paid in closing costs

estoyloco 2,215 1,575 April 28, 2015 at 01:14 PM in Finance
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I am closing on a new house and looking to lock this in, figured I share and maybe get feedback if anyone knows of anything better.

So far this seems like a killer deal. Offer good for both refi/purchase.

3.000% Rate/3.125% APR first 15 years.
Adjust only once, 2nd 15 years 3.000% rate/3.125% APR (+up to 6%).

1% origination fee waived when using their preferred Realtor/Title Co. (I assume purchases only).

0 discount points.
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#2
Quote from estoyloco View Post :
I am closing on a new house and looking to lock this in, figured I share and maybe get feedback if anyone knows of anything better.

So far this seems like a killer deal. Offer good for both refi/purchase.

3.000% Rate/3.125% APR first 15 years.
Adjust only once, 2nd 15 years 3.000% rate/3.125% APR (+up to 6%).

1% origination fee waived when using their preferred Realtor/Title Co. (I assume purchases only).

0 discount points.
In addition when using their preferred Realtor/title company they will pay up to $10K in closing costs.
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#3
dang.... thats nice! beats VA for the first 15 yrs...

Do they do hard cash loans for fixer upper homes (with proper credit and debt/income ratio)?
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#4
i would be worried about that last 15 years. i mean you can lock in 30 yrs for 3.625% to 3.75% easily

you could be paying 3% for 15 years, but then paying 9% for the last 15 years - unlikely, but why gamble over .625%?
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#5
I'm assuming the waived origination fee and realtor deal is only for new purchases: https://www.penfed.org/real-estate-rewards/

The terms and conditions note that existing PenFed refi's are excluded, so maybe it is valid for refi of other loans. I'm looking to refi my 5% 30 year to 15, so this 15/15 is tempting.
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#6
Quote from ionizer View Post :
i would be worried about that last 15 years. i mean you can lock in 30 yrs for 3.625% to 3.75% easily

you could be paying 3% for 15 years, but then paying 9% for the last 15 years - unlikely, but why gamble over .625%?
Not everyone keeps loans for 30 years.

you can always take this out and pay it off early or refinance within 15 years or sell your house.

no discounts no origination and $10k in closing costs for new purchases is killer.
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#7
According to the T&Cs, Origination fee is NOT covered by this deal.

"PenFed will pay your closing costs up to $10,000 including but not limited to: appraisal fee, tax service fee, CLO access fee, title fees, transfer tax fees, credit report fee, flood certification fee, recording fee, survey if required and work verification fee. .This does not include: origination fee, escrow, interest, homeowner’s insurance or owner’s title insurance, the cost for a structural engineering or similar report, should the appraiser request one, or points to buy a rate down or applied to a loan. See contract addendum for details."




Quote from yloco;75711925]I a :
closing on a new house and looking to lock this in, figured I share and maybe get feedback if anyone knows of anything better.

So far this seems like a killer deal. Offer good for both refi/purchase.

3.000% Rate/3.125% APR first 15 years.
Adjust only once, 2nd 15 years 3.000% rate/3.125% APR (+up to 6%).

1% origination fee waived when using their preferred Realtor/Title Co. (I assume purchases only).

0 discount points.
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#8
Does this ammortize over 30 years or 15 years?

Thanks.
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#9
Quote from usa06 View Post :
Does this ammortize over 30 years or 15 years?

Thanks.
30 years.
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#10
Quote from estoyloco View Post :
Not everyone keeps loans for 30 years.

you can always take this out and pay it off early or refinance within 15 years or sell your house.

no discounts no origination and $10k in closing costs for new purchases is killer.
dude, if i could guarantee i could pay it off in 15 years, then why wouldnt i just get a 15 year fixed loan for 2.75%?

$10k is only good if purchasing - no good for refinance

also, you sure the 1% origination isnt still valid? I was under the impression 1% still charged, but $10k in closing to cover it (typically)
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Last edited by ionizer April 28, 2015 at 01:54 PM
#11
Yea, gotta go with the 15 year note. 30 years is for suckers. Drop your price down a few thousand bucks and get 15 year note. Only way to go. Amortization over 30 years means you're paying what, $400/month in principle? 15 year not and your paying over $1,000/month principle for the same loan.
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#12
Who is giving 15 years fixed at 2.75? Seriously asking
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#13
Quote from VSaradhi View Post :
According to the T&Cs, Origination fee is NOT covered by this deal.

"PenFed will pay your closing costs up to $10,000 including but not limited to: appraisal fee, tax service fee, CLO access fee, title fees, transfer tax fees, credit report fee, flood certification fee, recording fee, survey if required and work verification fee. .This does not include: origination fee, escrow, interest, homeowner's insurance or owner's title insurance, the cost for a structural engineering or similar report, should the appraiser request one, or points to buy a rate down or applied to a loan. See contract addendum for details."
Origination fee waived when you use their realtor/title co. with new purchases, I even said it in my original post.... See: https://www.penfed.org/Real-Estat...WT.ac=1809

Quote from ionizer View Post :
dude, if i could guarantee i could pay it off in 15 years, then why wouldnt i just get a 15 year fixed loan for 2.75%?

$10k is only good if purchasing - no good for refinance

also, you sure the 1% origination isnt still valid? I was under the impression 1% still charged, but $10k in closing to cover it (typically)
This still gives you options. You can go down on payments on months where you want some cash set aside or pay more into the principle... either way it gives you choice. You don't have the upfront higher monthly commitment.
In addition, you can always refinance after first 3 years w/o penalty and/or sell your house, then you don't have to look at the adjustment for the 2nd 15 years.
In addition, the 15 year fixed rate does not pay for closing costs.

Yes see above, $10K closing cost & origination fee waived is only good on new purchases.

Quote from dj_rock View Post :
Who is giving 15 years fixed at 2.75? Seriously asking
Penfed...
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Last edited by estoyloco April 28, 2015 at 02:38 PM
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#14
Quote from ionizer View Post :
i would be worried about that last 15 years. i mean you can lock in 30 yrs for 3.625% to 3.75% easily

you could be paying 3% for 15 years, but then paying 9% for the last 15 years - unlikely, but why gamble over .625%?
Also I would like to add, I am selling my first home 3 years into the loan. I had a 3.85% rate on it. I personally would have preferred 3%, but alas it wasn't available at the time....
So if there is a chance you won't hold onto the house for more than 15 years, why not go for the lower rate?
Yes I know the 15 year fixed is still an even lower rate, but not everyone wants to put more into P&I every month.

I plan on staying in my house for the next 2 years and then renting it out for a few more years, and then selling it before the 15 years are up. For me having the luxury of lower monthly payments is nice, especially if that P&I payment is well below what I will collect in rent. Now the area I am buying in, I could go for the 15 year loan, however the rental ceiling would require me to pay out of pocket when I move out. So at that point I would look at paying partial on one property and maintaining another household.

Not to mention on months/periods where you don't have renters, that hurts even more...
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Last edited by estoyloco April 28, 2015 at 02:51 PM
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#15
Quote from nohomers1 View Post :
I'm assuming the waived origination fee and realtor deal is only for new purchases: https://www.penfed.org/real-estate-rewards/

The terms and conditions note that existing PenFed refi's are excluded, so maybe it is valid for refi of other loans. I'm looking to refi my 5% 30 year to 15, so this 15/15 is tempting.
This is still a 30 year loan.
For you since it is a refi the 15 year fixed is a better deal.

https://www.penfed.org/15-Year-Fixed-Mortgage/
2.750% 0 discount points 1% orig fee
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