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Penfed Auto Loan 1.49% for New, Used, Refinance up to 60 months

Just saw this posted on their site. 1.49% for New, used and Refinance up to 60 months if applied online. I have an autoloan and credit card with them and the have been great. There are multiple ways to qualify to become a member.

www.penfed.org



Wichard20 op

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They will refi their own auto loan.  The rate will be 1% more than the current rate.

Sintax (Sep. 23, 2013 @ 5:30p) |

donotdrinkPBR's suggestion is good if you have the cash, but what I did was just 'sell' the vehicle to my wife (she took... (more)

dl73 (Sep. 24, 2013 @ 11:07p) |

FYI. Did a refi auto loan and a new auto loan and two credit cards with one pull in the same day. All instant approved.

thuyswallet (Sep. 28, 2013 @ 9:04a) |

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I've been wondering something for a while, so I'll ask it here. What are the odds that I can:
-Become a member
-Open an auto loan
-Open both the Premium Travel Rewards CC (20k pts) & Platinum Rewards Card (25k pts)
with one credit pull, and actually have all three approved.
Thanks.

I just wish they didn't have this in the terms: ' Promotional rate is not available to refinance existing PenFed auto loans'

I've actually thought about refinancing somewhere else just so that I could refi back to penfed for the better rate.

BingBlangBlaow said:   I've been wondering something for a while, so I'll ask it here. What are the odds that I can:
-Become a member
-Open an auto loan
-Open both the Premium Travel Rewards CC (20k pts) & Platinum Rewards Card (25k pts)
with one credit pull, and actually have all three approved.
Thanks.


I've opened multiple products with one pull twice (mortgage + cash rewards cc) and (auto loan + travel rewards cc). Not sure about 3 products but I know that you are able to have both types of credit cards at the same time.

LordKronos said:   I just wish they didn't have this in the terms: ' Promotional rate is not available to refinance existing PenFed auto loans'

I've actually thought about refinancing somewhere else just so that I could refi back to penfed for the better rate.


Actually you can refinance, you just need to add $5000 to the amount.

The website said: Keep in Mind: If refinancing a PenFed loan, you must apply for an additional $5,000. 15% down payment for 72 month loan term is required.

Where is the language to support the "you must apply for an additional $5000.." refinance loophole?

Copy and Paste:

Refinance Auto Loans: New vehicles are where you are the original owner and the vehicle is a current or previous model year. For used vehicles, maximum used car loan advance is NADA “Retail Value” or 80% of the purchase price where NADA “Retail Value” is not available. Further restrictions apply on vehicles with 100,000 miles or more. Vehicle mileage may not exceed 125,000 miles. Up to 100% financing is available to qualified members. Rate not available for refinance of an existing PenFed loan.

*Internet only special rate. Higher rate will be assessed if you do not apply online. 1.49% APR applies to new and used refinanced vehicle loan amounts up to $70,000 financed for 12-60 months. 3.49% APR applies to new refinanced vehicle loan amounts up to $70,000 financed for 61-72 months. Promotional rate is not available to refinance existing PenFed auto loans. Rate and term depends on amount borrowed and model year. Other restrictions may apply.

jtdeals said:   LordKronos said:   I just wish they didn't have this in the terms: ' Promotional rate is not available to refinance existing PenFed auto loans'

I've actually thought about refinancing somewhere else just so that I could refi back to penfed for the better rate.


Actually you can refinance, you just need to add $5000 to the amount.

The website said: Keep in Mind: If refinancing a PenFed loan, you must apply for an additional $5,000. 15% down payment for 72 month loan term is required.


Yes, you can do that to refinance, but you won't get the 1.49% rate. I did the $5k cash out refi back when it dropped from 2.99% to 2.49%, but I don't believe they had that exclusion in the term back then. They've since added it, and although I haven't verified myself, others here have said the 1.99% wasn't available for an existing penfed refi, and I assume it would be the same for the 1.49% rate.

BingBlangBlaow said:   I've been wondering something for a while, so I'll ask it here. What are the odds that I can:
-Become a member
-Open an auto loan
-Open both the Premium Travel Rewards CC (20k pts) & Platinum Rewards Card (25k pts)
with one credit pull, and actually have all three approved.
Thanks.


Feasible.

I'm currently a member and only owe $4500 for my Honda. They said there isn't a limit and you can refinance up to 36 months for a amount this low. Would this hurt my credit score that much?

Yes refinance of an existing Penfed loan is now 1.99%, so that might still be worth it for people @ 2.49% and above (if you pay it down $5k first)

nothingevertodo said:   Where is the language to support the "you must apply for an additional $5000.." refinance loophole?

Copy and Paste:

Refinance Auto Loans: New vehicles are where you are the original owner and the vehicle is a current or previous model year. For used vehicles, maximum used car loan advance is NADA “Retail Value” or 80% of the purchase price where NADA “Retail Value” is not available. Further restrictions apply on vehicles with 100,000 miles or more. Vehicle mileage may not exceed 125,000 miles. Up to 100% financing is available to qualified members. Rate not available for refinance of an existing PenFed loan.

*Internet only special rate. Higher rate will be assessed if you do not apply online. 1.49% APR applies to new and used refinanced vehicle loan amounts up to $70,000 financed for 12-60 months. 3.49% APR applies to new refinanced vehicle loan amounts up to $70,000 financed for 61-72 months. Promotional rate is not available to refinance existing PenFed auto loans. Rate and term depends on amount borrowed and model year. Other restrictions may apply.


I got the information from this link: https://www.penfed.org/refinance-auto-loan/

However, I didn't realize there were the disclosures you posted at the bottom of the page. I had to page down twice to see them. Sneaky PenFed.

Have a $18k loan from Chase for 2.44%. Just applied and approved for $23k loan refi from PenFed at 1.49%.

Reviewed electronic documents, one requirement is $500 max deductible insurance, but I generally carry $1000. Called and they asked the loan reviewer and they approved me to keep $1000 deductibles and made a note on the account.

Also inquired on the extra $5k, they said that tomorrow they will mail two checks, one to Chase & myself for the payoff amount I entered, the other to just myself for the remainder.

Very efficient and smooth process - impressed.

Worse thing will be waiting at the DMV to have the title updated, PenFed explained I need to take the payoff document from Chase to the DMV, have the title changed to show PenFed as the secured interest, and then the state will notfiy PenFed. No rush, but a pain regardless.

Not a huge interest savings, about $15 a week now, $10 a week come 2014. The $5k extra cash I asked for will be helpful with to pay slightly higher interest debt.

Documentation fee ?

masterdeals said:   Have a $18k loan from Chase for 2.44%. Just applied and approved for $23k loan refi from PenFed at 1.49%.

Reviewed electronic documents, one requirement is $500 max deductible insurance, but I generally carry $1000. Called and they asked the loan reviewer and they approved me to keep $1000 deductibles and made a note on the account.

Also inquired on the extra $5k, they said that tomorrow they will mail two checks, one to Chase & myself for the payoff amount I entered, the other to just myself for the remainder.

Very efficient and smooth process - impressed.

Worse thing will be waiting at the DMV to have the title updated, PenFed explained I need to take the payoff document from Chase to the DMV, have the title changed to show PenFed as the secured interest, and then the state will notfiy PenFed. No rush, but a pain regardless.

Not a huge interest savings, about $15 a week now, $10 a week come 2014. The $5k extra cash I asked for will be helpful with to pay slightly higher interest debt.

hansp said:   Documentation fee ?

PenFed didn't charge anything that I'm aware of. Michigan charges $15 IIRC to change / reprint the title.

Every state handles those titles different, I think in some states you actually send your title to the bank.

Just refinanced a penfed auto loan last week to get 1.99%. They sent me a $5k check that I will just deposit and apply to the loan. I also asked for the pen fed AMEX, they approved immediately.
I'm gonna go in this week to see if they can move it to 1.49% since it wasn't even a week ago.

LordKronos said:   I just wish they didn't have this in the terms: ' Promotional rate is not available to refinance existing PenFed auto loans'

I've actually thought about refinancing somewhere else just so that I could refi back to penfed for the better rate.


Score above 740?

I tried applying for a PenFed refinance, but got this message on the first screen:

"Existing PenFed vehicle loans are not eligible to be refinanced at this promotional rate"

saladdin said:   LordKronos said:   I just wish they didn't have this in the terms: ' Promotional rate is not available to refinance existing PenFed auto loans'

I've actually thought about refinancing somewhere else just so that I could refi back to penfed for the better rate.


Score above 740?


Yes, but why do you ask?

I just bought a new 2012 car with a penfed loan in April at the 1.99% rate. I'm guessing I have no options for getting it lowered to 1.49%?

Joe328 said:   Just refinanced a penfed auto loan last week to get 1.99%. They sent me a $5k check that I will just deposit and apply to the loan. I also asked for the pen fed AMEX, they approved immediately.
I'm gonna go in this week to see if they can move it to 1.49% since it wasn't even a week ago.



Without actual buying the car can one deposit the amount and use it for some other purpose?

hoodwink said:   Joe328 said:   Just refinanced a penfed auto loan last week to get 1.99%. They sent me a $5k check that I will just deposit and apply to the loan. I also asked for the pen fed AMEX, they approved immediately.
I'm gonna go in this week to see if they can move it to 1.49% since it wasn't even a week ago.



Without actual buying the car can one deposit the amount and use it for some other purpose?


You can do whatever with the 5k or any equity they pay you but they require the title so no you can't just use it.for some other purpose.

Does Penfed have a good online billpay service which allows you to pay over the monthly amount and have the extra go directly to the principal each month?

Interesting thing is that 5 year Home Equity loan rate is higher than 5 year car-loan. Does PenFed think car is more reliable asset than home?

Athenakt said:   Does Penfed have a good online billpay service which allows you to pay over the monthly amount and have the extra go directly to the principal each month?
Billpay is ok, but you can not apply extra towards the principal without contacting penfed directly. An overpayment online will just lead to a lower monthly payment the following month.
Edit: will check on this, maybe it has changed?

Athenakt said:   Does Penfed have a good online billpay service which allows you to pay over the monthly amount and have the extra go directly to the principal each month?

Yes, I round up my payments every month and the extra just gets applied to the principle. And you can add external bank accounts for easy drop-down list transfers/payments (much easier than NFCU, which seems to require a manual "xfer $XX from external" account process each time.)

It's still manual however, but I rarely use automated payments anyway.

Joe328 said:   Billpay is ok, but you can not apply extra towards the principal without contacting penfed directly. An overpayment online will just lead to a lower monthly payment the following month.

That's not my experience at all - unless you are talking about using a 3rd-party BillPay to pay your PenFed loan? Maybe that's what the OP is talking about, too. I'm talking about using the PenFed site directly (to pull payments from 3rd party accounts.) That process is straight-forward and allows for extra principle payments.

LordKronos said:   saladdin said:   LordKronos said:   I just wish they didn't have this in the terms: ' Promotional rate is not available to refinance existing PenFed auto loans'

I've actually thought about refinancing somewhere else just so that I could refi back to penfed for the better rate.


Score above 740?


Yes, but why do you ask?


Penfed is super conservative. If you're not at least 740, you are wasting your time with them.

hoodwink said:   Joe328 said:   Just refinanced a penfed auto loan last week to get 1.99%. They sent me a $5k check that I will just deposit and apply to the loan. I also asked for the pen fed AMEX, they approved immediately.
I'm gonna go in this week to see if they can move it to 1.49% since it wasn't even a week ago.



Without actual buying the car can one deposit the amount and use it for some other purpose?


A good lawyer would be a start.

If someone is interested in becoming part of PenFed one of the qualifying organizations to belong to is: http://www.voicesfortroops.org/

It's a $15 fee to join for any civilian of the USA. - If you're looking at saving a lot of money - then yes, 15 bucks isn't bad.

contactcr said:   hoodwink said:   Joe328 said:   Just refinanced a penfed auto loan last week to get 1.99%. They sent me a $5k check that I will just deposit and apply to the loan. I also asked for the pen fed AMEX, they approved immediately.
I'm gonna go in this week to see if they can move it to 1.49% since it wasn't even a week ago.



Without actual buying the car can one deposit the amount and use it for some other purpose?


You can do whatever with the 5k or any equity they pay you but they require the title so no you can't just use it.for some other purpose.


No you can't. Within month and a half if penfed doesn't get the electronic title, they will change the rate to highest rate available at that time. You will see this clause in papers you receive.

saladdin said:   LordKronos said:   saladdin said:   LordKronos said:   I just wish they didn't have this in the terms: ' Promotional rate is not available to refinance existing PenFed auto loans'

I've actually thought about refinancing somewhere else just so that I could refi back to penfed for the better rate.


Score above 740?


Yes, but why do you ask?


Penfed is super conservative. If you're not at least 740, you are wasting your time with them.


Although I think it is interesting they sent my wife, who has no income, a $50k pre-approved auto loan check that could be used unconditionally (no application or income verification required). After she used it, they sent her another check for up to $40k!

I've never finance a car before so I really don't know how it works. I've bought used cars and 2 years ago a new one. I paid cash at the time. Is there a way that I could benefit from this deal when the car title belongs to me, not a bank? Is it possible for me to get cash for my car and use it for other purposes during this 3-5 year period while I pay Penfed back monthly?

Thanks!

JumboRedGrunt said:   I've never finance a car before so I really don't know how it works. I've bought used cars and 2 years ago a new one. I paid cash at the time. Is there a way that I could benefit from this deal when the car title belongs to me, not a bank? Is it possible for me to get cash for my car and use it for other purposes during this 3-5 year period while I pay Penfed back monthly?

Thanks!


Yes.

how long before you get notified you are a member? I just signed up yesterday.

Isn't one of the qualifications for membership being a USO donor? Make a donation to a worthy organization and you can become a PenFed member. That's how I got in but you'll have to confirm that is still true.

Also, don't miss the .49% rate if you purchase a car through their car buying service. I did that about a month ago (when the rate was higher) and got the best price on a new Camry. No commitment try ask for quotes from the service but you could qualify for an even lower rate.

Just an FYI, in case anyone is in the same boat as me. I applied for a Penfed auto loan about 2 months ago at 1.99% APR but I have not used the check yet (because I am waiting for my car to be delivered); I saw that they dropped the rate to 1.49% so I gave them a call and they said they would give me the lower rate even though I applied 2 months ago.

Joe328 said:   Athenakt said:   Does Penfed have a good online billpay service which allows you to pay over the monthly amount and have the extra go directly to the principal each month?
Billpay is ok, but you can not apply extra towards the principal without contacting penfed directly. An overpayment online will just lead to a lower monthly payment the following month.
Edit: will check on this, maybe it has changed?


As cKGunslinger indicated, that's not true. I've done it several times, and any extra amount goes towards principal.

Basically, the way penfed works for auto loans (at least when making a payment >= your monthly payment...I've never made an extra payment that's less than the monthly payment) is that whatever amount you pay, they subtract however much interest has accrued since the date of your last payment and then put the remainder towards principal. In addition, each time you make a payment (greater than your monthly payment) it pushes your due date back 1 month. I've done it before where I made 4 payments on 4 consecutive days, each one in the amount of the monthly payment. The first payment subtracted approx 30 interest and put the rest towards principal. The next 3 payments each subtracted 1 day of interest and then put the rest towards principal. I then didn't make another payment for 4 months. When I did make that next payment, I was charged for approx 120 days interest (since the date of the 4th payment), and the interest was calculated at the reduced principal amount. So there's really no penalty for prepaying on an auto loan.

Their mortgages, on the other hand, don't work quite the same way. When you make your monthly payment, you can pay additional at that time and it will go towards principal (though I'll mention I don't have escrow on my mortgage). However if you make a second payment (>= your monthly payment), that payment gets treated as if you sent it on the due date of the following payment, thus you essentially give penfed an interest free loan.

CalBear07 said:   Just an FYI, in case anyone is in the same boat as me. I applied for a Penfed auto loan about 2 months ago at 1.99% APR but I have not used the check yet (because I am waiting for my car to be delivered); I saw that they dropped the rate to 1.49% so I gave them a call and they said they would give me the lower rate even though I applied 2 months ago.

Yep that's standard. Penfed does not do rate locking on auto loans, so you get whatever rate is available on the date you close on the loan. It works that way no matter whether the rate goes up or down.

A question on the logistics of the used loan. Does the initial payment need to go directly to the auto dealer? Or can I pay with a combo of cash and credit card and reimburse myself?

Redzy said:   A question on the logistics of the used loan. Does the initial payment need to go directly to the auto dealer? Or can I pay with a combo of cash and credit card and reimburse myself?

You are asking if you can pay for the vehicle out of pocket and then cash out the equity. Yes, you can do that. Penfed will allow you to cash out a paid off vehicle. If you get a good deal, you can even cash out more than you paid for it. They'll let you borrow up to the NADA retail value.

Skipping 230 Messages...
FYI. Did a refi auto loan and a new auto loan and two credit cards with one pull in the same day. All instant approved.



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