Penfed Home Equity Loan 1.99%

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for those with penfed equity loans, is the payment immediately responsive to principal reduction? that is, if you make a principal payment, does the interest payment change next month?

tia

vinouspleasure said:   for those with penfed equity loans, is the payment immediately responsive to principal reduction? that is, if you make a principal payment, does the interest payment change next month?

tia


Yes, It will change the next month, or the next day, or next minute for that matter - if you wish to make multiple payments to immediately drop the balance.

I applied today, will update as it progresses.

We have a 10 year, 4.25% as a result of the chase refi program. We've been paying an extra $500 per month and will pay off in 6 years. I did the math on this and with an extra $300/month towards principal ($800 total), we can pay off in five years and save $14k(!).

applying next week.

What kind of personal documentation do they need? i am with penfed first mortgage 5/5 @ 3.125%/296k and i am planning to payoff first mortgage with 40%LTV.

Do folks know if there is any debt to income cutoff for the home equity loan?

ko22 said:   vinouspleasure said:   for those with penfed equity loans, is the payment immediately responsive to principal reduction? that is, if you make a principal payment, does the interest payment change next month?

tia


Yes, It will change the next month, or the next day, or next minute for that matter - if you wish to make multiple payments to immediately drop the balance.


My current HEL is paid in advanced through DEC this year and it reflects on the account as payments not due until then. I made a lumpsum payment to cover the monthly payments, has anyone done that?

I want to make sure that indeed I don't have to make any payments until then?

Anyone?

I made several payments rather than the lump sum and my next due date is November 2013 - so my situation is a little different than yours in making a lump sum. AFAIK your payment is not due until your due date, however interest will still accrue - making your January 2014 payment all or mostly all interest - but I'm guessing that's likely your strategy to maximize your interest deduction for 2014?

Excellent reply, thanks. Yes, that is one of my goals, however you mentioned that interest will still accrue; from what date, am also assuming that the interest will be calculated based on the current balance, so if my previous balance (pre-lumpsum) was 90K and the balance post lumpsum payment is 65K, the interest will be from the 65K right?

I made all payments thru DEC 2013 in JAN 2013.

Interest will accrue from the date of your last payment - and yes, it will be on the post-lump sum balance ($65k). So doing a rough back of napkin calculation: when you make your next payment in January 2014 on a $65k balance at 2%/year, means that roughly $1,300 of that payment will go to interest.

just applied, will use funds to pay off mortgage, will save $14k over current 4.25% 10 year fixed. will update here on progress.

I'd also like to get a heloc with them, not sure if I should apply at the same time...any thoughts?

Did anyone pay any settlement charges? The GFE says:
$607 credit for this interest rate
$322 Appraisal fee, credit report fee, etc
$365 tittle and lender tittle insurance
$220 Govt recording fees

$300 total fees for a $100K loan

Most HEL's carry no cost. There is no other mortgage loan on the house. House is in NNJ. House is worth over $300 thru zillow.


Is there a way to convince their loan dept?

$300 is for the appraisal fee.. Lower your LTV, and have excellent credit, to get the appraisal waived.

I am going with a 60k loan on condo worth $135k. 42k to pay off the current mortgage and 18k for me. They still required an appraisal even though I provided two other comps that sold within the last 6 months for more than 135k in the same complex, same size, same everything. They still required it saying if it isn't in their system (something about a 3rd party vendor?), they require the appraisal.

Bizatch said:   $300 is for the appraisal fee.. Lower your LTV, and have excellent credit, to get the appraisal waived.

20% ltv here, excellent credit, they still want $300

vinouspleasure said:   Bizatch said:   $300 is for the appraisal fee.. Lower your LTV, and have excellent credit, to get the appraisal waived.

20% ltv here, excellent credit, they still want $300


I had just below 60% LTV and they did not require an appraisal.

Bizatch said:   $300 is for the appraisal fee.. Lower your LTV, and have excellent credit, to get the appraisal waived.I have to report a most unsatisfactory experience.

I had <25% LTV with 800+ credit score. I had my town's 100% tax assestment, Zillow, and several comps (all within 10% of each other). They still insisted on $300 appraisal fee.

The appraisal came in within 10% of all of the above valuations and resulted in exactly a 24% LTV. Then they required that I replace my back deck before proceeding. Ummm, one of the reasons for getting HELs is to do house maintenance, "after" you get it not "before".

Needless to say, I did not move forward, closed my account, and will NEVER do business with them ever again.

I didn't have to pay for the $300 appraisal fee even through it was listed on my GFE. I thought I might have to pay for the appraisal fee even through my LTV was 0% and my credit score was 850 due to all the reviews here about Penfed. So prior to sending the loan officer all my required insurance information, I thought I would at least give it a try and see whether I could change their opinions with a customized home valuation analysis. I didn't bother to use Zillow as my basis but I did try to use some of the basic information on the tax assessment such as square footage, # of bedrooms, # of bathrooms, construction materials, add-ons, etc for my analysis. I was lucky enough to find four houses within my area (< 5 miles) with the same specifications and they were sold within the last 6 months. So rather than using the taxable value from the tax assessment, I was able to use the actual market price for my comparison. In addition, I listed out all the large renovations (new HVAC, new carpet, etc.) that I did in the past two years and provided receipts to support those improvements. So overall, it took me a couple of hours to gather all the information but it did save me $300.

btuttle said:   Bizatch said:   $300 is for the appraisal fee.. Lower your LTV, and have excellent credit, to get the appraisal waived.I have to report a most unsatisfactory experience.

I had <25% LTV with 800+ credit score. I had my town's 100% tax assestment, Zillow, and several comps (all within 10% of each other). They still insisted on $300 appraisal fee.

The appraisal came in within 10% of all of the above valuations and resulted in exactly a 24% LTV. Then they required that I replace my back deck before proceeding. Ummm, one of the reasons for getting HELs is to do house maintenance, "after" you get it not "before".

Needless to say, I did not move forward, closed my account, and will NEVER do business with them ever again.


Did they give you a reason for requiring you to replace the back deck? Was it in violation of some city code?

application to close in 26 calendar days. perfect customer service. Could have shaved a week off if they didn't need an appraisal.

Applied 1/2/2013, still waiting for them to finish. Appraiser finished two weeks ago.

Our loan took about 25 days, no appraisal.

I logged into penfed today and noticed the rate is now 2.49%

Yup, I received an email that it is 2.49%

sucks, looks like their rate went up to 2.49

Is 50-basis points a deal breaker? Does anyone have a lower rate than PenFed HEL?

Frankly, at 2.49%, I wouldn't go through the hassle again. Definitely my worst experience with a lending institution.

edit: I no spell good.

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

It is for me. I went through a bunch of hoops and got a loan approved after several months only for it go fall through and have to restart over from step 1.

At this rate, go with a 5/1 instead.

Took me from Jan 1 to Mar 5 to go through this process. That was painful.

It was my experience that if you went 60% - they'd use the higher of your county tax value or an automated appraisal - so that's how a lower LTV helps waive the appraisal fee.

just saw this on penfed web site. please note this is heloc and not hel and after 12/31/2013 rate goes up to prime + 0 --currently 3.75 % for owner occupied home

1.98 % APR till end of 2013

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

skepticShopper said:   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


only certain states:

DCU website said: The DCU Financial site is designed for U.S. residents only. The services offered within this site are offered exclusively through our U.S. registered representatives. LPL Financial Registered Representatives associated with this site may only discuss and/or transact securities business with residents of the following states: CA, CT, CO, FL, GA, IL, MA, MD, MO, NC, NH, NJ, NY, OH, PA, RI, SC, TX, UT, VA, VT, and WA.

cyberl0k said:   skepticShopper said:   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


only certain states:

DCU website said: The DCU Financial site is designed for U.S. residents only. The services offered within this site are offered exclusively through our U.S. registered representatives. LPL Financial Registered Representatives associated with this site may only discuss and/or transact securities business with residents of the following states: CA, CT, CO, FL, GA, IL, MA, MD, MO, NC, NH, NJ, NY, OH, PA, RI, SC, TX, UT, VA, VT, and WA.


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

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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