Penfed Home Equity Loan 1.99%

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cyberl0k (Mar. 17, 2013 @ 10:21a) |

I vaguely remember that DCU financial is different entity than DCU (which will handle hel). The state restrictions are ... (more)

skepticShopper (Mar. 18, 2013 @ 3:13a) |

Just saw minimum loan amount at dcu is 15k now

skepticShopper (Mar. 26, 2013 @ 6:33p) |

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WOW. 1.99% for 5 years is awesome for anyone agressively paying down their home, use it as a no closing cost refi.

Payment size will be huge though because of the 5 year term.

Also great for buying cheap rental properties using the equity of your primary home

HOT HOT HOT!!!!!!!!!!!!!!

Wow. This rate is really good. Looks like they dropped it from 2.99% to 1.99%.

scanchain said:   Wow. This rate is really good. Looks like they dropped it from 2.99% to 1.99%.
Just closed at 2.99% myself.

ChaseDestructor said:   scanchain said:   Wow. This rate is really good. Looks like they dropped it from 2.99% to 1.99%.
Just closed at 2.99% myself.

Ouch.

I am currently locked at 4.375% for 15yr at a local credit union.

SUCKISSTAPLES said:   use it as a no closing cost refi.
how can i calculate all of the costs involved in doing a refi? right now, i'm on a 10 year fixed 4.25%. sounds like a good deal.
thanks,

matthewk said:   SUCKISSTAPLES said:   use it as a no closing cost refi.how can i calculate all of the costs involved in doing a refi? right now, i'm on a 10 year fixed 4.25%. sounds like a good deal.
thanks,
Closing Costs: PenFed will pay all closing cost associated with an Equity or ELOC loan; except for an appraisal should one be required. Should this loan be paid off or closed within 24 (36 for 5/5 ELOC) months from the anniversary date of the loan closing, the member will be obligated to pay PenFed the full amount of the total closing cost for the loan.

SUCKISSTAPLES said:   WOW. 1.99% for 5 years is awesome for anyone agressively paying down their home, use it as a no closing cost refi.

Payment size will be huge though because of the 5 year term.

Also great for buying cheap rental properties using the equity of your primary home

HOT HOT HOT!!!!!!!!!!!!!!


Wow, it might come in handy. Thanks OP.

I can refinance a $400,000 mortgage and the monthly payment would only be $7009.35.

Besides a rental, which is an interesting proposition, one could buy a car with this and the rate would be same or lower than a car loan.

I'll have to check with my accountant if these uses can be tax deductible bring down the effective rate to 1.5% or less.

Yes , home equity loans are tax deductible up to $100,000 above your purchase money loan.
So if your current mortgage is $50k, you can pull out $100k more, or payoff your 1st mortgage and get $150k Penfed HEL to replace your mortgage and its deductible.

If you use it to buy rental property, the loan can be deducted as rental interest expense (not as primary mortgage interest expense) regardless of how much equity you take out.

SUCKISSTAPLES said:   Yes , home equity loans are tax deductible up to $100,000 above your purchase money loan.
So if your current mortgage is $50k, you can pull out $100k more, or payoff your 1st mortgage and get $150k Penfed HEL to replace your mortgage and its deductible.

If you use it to buy rental property, the loan can be deducted as rental interest expense (not as primary mortgage interest expense) regardless of how much equity you take out.


Thanks, that was quick. Good to know the amount. Too bad it won't work to help buy this dream SUV:

http://autos.yahoo.com/blogs/motoramic/bentley-exp-9-f-just-ever...

I scanned the HELOC sticky and found 2.99% HEL at SECNY (up to 5 years) and HELOC promo at Adirondack Trust with 1.99% first year and then prime + 0% (20 years?) thereafter.

http://www.fatwallet.com/forums/finance/150875/
http://secny.org/mortgage_rates
http://www.adirondacktrust.com/en/rates-a-calculators/home-mortg...

BTW, anyone know if there are other banks offering similar deals? Anything that competes or comes close or closest?

Those big round intakes under the headlights look silly , otherwise it's pretty nice

SUCKISSTAPLES said:   WOW. 1.99% for 5 years is awesome for anyone agressively paying down their home, use it as a no closing cost refi.

Payment size will be huge though because of the 5 year term.

Also great for buying cheap rental properties using the equity of your primary home

HOT HOT HOT!!!!!!!!!!!!!!


Can you please explain how this one can be used for Refi? I've 140k mortgage currently on a 200K House. I was planning to do a 15 year fixed refi but saw this thread and was wondering about my options. Will i eligible for this Penfed HEL? If so after applying for Penfed HEL will Penfed directly pay off my current mortgagor or i've to Pay Off the current mortgagor and apply for HEL? Sorry for the newbie qn.

I don't know where to be happy or sad? I was comparing the 2.99% 5 year to a 15 year at 3.25 and went with the 15 year.

Now I might refi again to the 1.99... PI pmt would more than double to $2436, but we'd be free of mortgage debt in just five years.

ETA: An appraisal is required for LTV greater than 60%. Not so hot for me now.

ETA2: I applied anyway

hotpep said:   SUCKISSTAPLES said:   WOW. 1.99% for 5 years is awesome for anyone agressively paying down their home, use it as a no closing cost refi.

Payment size will be huge though because of the 5 year term.

Also great for buying cheap rental properties using the equity of your primary home

HOT HOT HOT!!!!!!!!!!!!!!


Can you please explain how this one can be used for Refi? I've 140k mortgage currently on a 200K House. I was planning to do a 15 year fixed refi but saw this thread and was wondering about my options. Will i eligible for this Penfed HEL? If so after applying for Penfed HEL will Penfed directly pay off my current mortgagor or i've to Pay Off the current mortgagor and apply for HEL? Sorry for the newbie qn.


I paid off a 30 yr fixed with the penfed 10 year @ 3.99 about a year back. I was in a similar situation to you, i owed 122 on a 180k house and the penfed hel worked great. During the application process there is a question about "will this loan be used to pay off a morgage " or something similar.

I'd be all over this if i was nkt about to put house on marmet

Also penfed paid off my mortgage directly if i remember correctly. I dont tbink thet want to send peope a check for potentially hundreds of thousands of dollars.

Dang, just closed on the 2.99 with them a few months back. They are quite slow, it took over three months for them to get it all done.

Owner occupied only. Too bad, since I need to extract the value out of a non owner occupied home.

darn. Owner occupied kills it for me =(

Took PenFed HEL @ 2.99 less than 2 years ago. If I refinance now @ 1.99, will have to pay closing fees on the old one...

I bought town home @135K 6 months ago and took a loan for 108K @ 30 yr @4.25% . I wish I had considered the 15 yr then. This looks attractive but the monthly payment looks overwhelming. any suggestions. my take home pay is around 5K . Also now, i think the market has fallen 10k now.

lizardbrn said:   Took PenFed HEL @ 2.99 less than 2 years ago. If I refinance now @ 1.99, will have to pay closing fees on the old one...

If you pay it off and close out the loan, it would trigger the clause, but if you keep $1 or more (taking into account additional payments till 24 months are up), then I don't see why you couldn't pay off most of it. The only thing is how much excess equity you have that won't trigger higher interest rate (60% or 80% LTV?). They may have a hidden rule that says you can't do that, but how would they know what cash went where? You'd pay double interest for a short time.

macosx said:   lizardbrn said:   Took PenFed HEL @ 2.99 less than 2 years ago. If I refinance now @ 1.99, will have to pay closing fees on the old one...

If you pay it off and close out the loan, it would trigger the clause, but if you keep $1 or more (taking into account additional payments till 24 months are up), then I don't see why you couldn't pay off most of it. The only thing is how much excess equity you have that won't trigger higher interest rate (60% or 80% LTV?). They may have a hidden rule that says you can't do that, but how would they know what cash went where? You'd pay double interest for a short time.


In some states, you are only allowed one HEL or HELOC lien at a time, so this won't work in all states.

erinm said:   ETA: An appraisal is required for LTV greater than 60%. Not so hot for me now.

How much (little) would you be borrowing? What is the current interest rate? If you have $100,000 at 3% and reduce it to 2%, doesn't that save you about $1000 the first year? Don't appraisals run about $300? Doesn't appear to be any other costs.

BTW, without an appraisal, what value would they use to determine the LTV?

macosx said:   erinm said:   ETA: An appraisal is required for LTV greater than 60%. Not so hot for me now.

How much (little) would you be borrowing? What is the current interest rate? If you have $100,000 at 3% and reduce it to 2%, doesn't that save you about $1000 the first year? Don't appraisals run about $300? Doesn't appear to be any other costs.

BTW, without an appraisal, what value would they use to determine the LTV?


They'll use tax value at 60%, IIRC.

This greenearth said:   I bought town home @135K 6 months ago and took a loan for 108K @ 30 yr @4.25% . I wish I had considered the 15 yr then. This looks attractive but the monthly payment looks overwhelming. any suggestions. my take home pay is around 5K . Also now, i think the market has fallen 10k now.
This is only for people who can easily afford the high monthly payment of a 5 year loan

If it's unaffordable don't even try it just for the low rate

Horseymen said:   macosx said:   erinm said:   ETA: An appraisal is required for LTV greater than 60%. Not so hot for me now.

How much (little) would you be borrowing? What is the current interest rate? If you have $100,000 at 3% and reduce it to 2%, doesn't that save you about $1000 the first year? Don't appraisals run about $300? Doesn't appear to be any other costs.

BTW, without an appraisal, what value would they use to determine the LTV?


They'll use tax value at 60%, IIRC.

In many states the tax assessed value has no relation to market value. Penfed uses automated appraisals (similar to zillow but more accurate) to determine whether a full appraisal will be needed or not

Anyone have both the fixed rate HEL and a HELOC with Penfed? I'm wondering if they will allow a person to have both. We like having a HELOC as a supplement to our emergency fund.

macosx said:   erinm said:   ETA: An appraisal is required for LTV greater than 60%. Not so hot for me now.

How much (little) would you be borrowing? What is the current interest rate? If you have $100,000 at 3% and reduce it to 2%, doesn't that save you about $1000 the first year? Don't appraisals run about $300? Doesn't appear to be any other costs.

BTW, without an appraisal, what value would they use to determine the LTV?


$139k. I'm tired of paying for appraisals - we seem to refi at least one property every year. The prices for the appraisals keep going up, while the amount of work the appraiser does goes down.

I have a higher rate now, but less risk since it's amortized over 15 years. I did apply.

ArmchairQB said:   Dang, just closed on the 2.99 with them a few months back. They are quite slow, it took over three months for them to get it all done.
Same. Applied in October and closed a few weeks ago. Wonder if there is some way I can get the 1.99 rate.

Thanks, OP. Just applied and got "credit approved" for nearly $100k.

So I'm currently at 93% LTV on my house, and about to dump a giant chunk of cash on it to get me to 78% to drop PMI. Anything I'm missing here or should I (property value dependently) be able to take that 7% back out with this to get me up to 85% TLTV with this added on?

------
never mind, just saw 2% rate is just up to 80%.

ajh5408 said:   matthewk said:   SUCKISSTAPLES said:   use it as a no closing cost refi.how can i calculate all of the costs involved in doing a refi? right now, i'm on a 10 year fixed 4.25%. sounds like a good deal.
thanks,
Closing Costs: PenFed will pay all closing cost associated with an Equity or ELOC loan; except for an appraisal should one be required. Should this loan be paid off or closed within 24 (36 for 5/5 ELOC) months from the anniversary date of the loan closing, the member will be obligated to pay PenFed the full amount of the total closing cost for the loan.
ok, so in order to avoid loan closing costs, i need to let the loan live at least 37 months it seems.

i've seem some talk here about 60% of the assessed value. my current mortgage loan is less than a year old and has a remaining principle is less than 60% of the property's assessed value; does this mean that i won't need an appraisal done?

any other costs to look out for with the refi?
thanks,

SUCKISSTAPLES said:   WOW. 1.99% for 5 years is awesome for anyone agressively paying down their home, use it as a no closing cost refi.

Payment size will be huge though because of the 5 year term.

Also great for buying cheap rental properties using the equity of your primary home

HOT HOT HOT!!!!!!!!!!!!!!


I have about 85K left on a 15 years @ 3.25; just refinanced in DEC last year. Running some quick numbers, if I take this loan it would yield a PI of roughly 1500 per month with pay off within 5 years?


uhmmmm?

Thanks OP!
This seems like the perfect deal for someone like me who was waiting for a while
Going to get a HELOC for 170K to payoff my current 4.25 @ 15 yrs.

fattywallace said:   SUCKISSTAPLES said:   WOW. 1.99% for 5 years is awesome for anyone agressively paying down their home, use it as a no closing cost refi.

Payment size will be huge though because of the 5 year term.

Also great for buying cheap rental properties using the equity of your primary home

HOT HOT HOT!!!!!!!!!!!!!!


I have about 85K left on a 15 years @ 3.25; just refinanced in DEC last year. Running some quick numbers, if I take this loan it would yield a PI of roughly 1500 per month with pay off within 5 years?


uhmmmm?

What's your question? Yes about $1500/month sounds about right

fattysaver said:   Thanks OP!
This seems like the perfect deal for someone like me who was waiting for a while
Going to get a HELOC for 170K to payoff my current 4.25 @ 15 yrs.

This is NOT a heloc.

This is a fixed rate home equity loan
HEL

Big difference , do not apply for a heloc if what you really want is this HEL

I'm wondering if I should use this and pay off my ING Easy Orange (~90k on property of ~180k value)...will rate drop by 0.5% but wondering if there is a way to do this.

TheWalL said:   I'm wondering if I should use this and pay off my ING Easy Orange (~90k on property of ~180k value)...will rate drop by 0.5% but wondering if there is a way to do this.
As long as you can easily afford the higher payment go for it

Just indicate you want to payoff your existing mortgage on the app

SUCKISSTAPLES said:   Yes , home equity loans are tax deductible up to $100,000 above your purchase money loan.
So if your current mortgage is $50k, you can pull out $100k more, or payoff your 1st mortgage and get $150k Penfed HEL to replace your mortgage and its deductible.
.



What if your house is paid off? Will the HEL still be tax deductible? no matter what you use it for??

Skipping 276 Messages...
skepticShopper said:   TheWalL said:   Is 50-basis points a deal breaker? Does anyone have a lower rate than PenFed HEL?

have recently come across this which matches penfed on the rate with no pre-payment penalty. though, requires at least 40k in HEL.

dcu.org-->5 and 10 Year Fixed Rate Home Equity Loan Limited Time Offer


Just saw minimum loan amount at dcu is 15k now



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