Fed rates and mortgages rates are not high correlated.

dealhunter999 said:I am not an expert in mortgage scenario but how will it work if a person makes extra payment in first 60 months on a monthly basis? Will there be any peanlty for it? I mean is it even possible to do that with ARMS?

There is no prepayment penalty. Pay off the entire loan in the first month, or pay additional $5 every month.

cameron2003 said:ardentazn said:dgtop said:ardentazn

I would go with their Home equity loan product. They have 5.99 fixed loan for 20 years. Pay off the existing loan and take out the 40k using that.

thanks.. i didn't see it in their rates page.. but will look again and perhaps call them to see... thanks

Do 0% balance transfers instead.

The recent fed cut should mean penfed mortgaes will drop?

Do you mean Pedfed has a 0% BT??? or will I need to look into other credit cards??? thanks

Down to 5.25% today.

Incarnate said:wakebdr said:I'm debating looking into this more.

We are 2 years into our home with the following loans:
1st mortgage is 30 year conventional at 5.375%
2nd mortgage is 15 year amortized over 30 years at 7.00%

The current split is about 250k in the 1st mortgage and 31k in the second. When we bought the house (2 years ago) it was appraised for 346k. So, if I am doing the math right, it would have to appreciate about 5k for us to get into a single loan without PMI. We are planning on staying in this house for at least another 15 years, so I don't know if I want to give up my 30 year at 5.375.

Would it make sense to refi the 2nd into the 5/5, and is that even possible?

I'm also thinking about about opening a HELOC just for emergency purposes.
Don't get rid of your 1st mortgage. That is a really good rate. I don't think you can refi the 2nd mortgage into their 5/5. The 2nd mortgage is a pretty good rate too - just make sure you pay it off within 15 years or sooner, otherwise you're gonna find out that you owe still owe like $27,000 on a $31,000 loan in 15 years.
I agree. Keep the first. Look into the Pentagon Federal Credit Union's 5.99% fixed 20year HEL, no closing costs or prepayment penalty, with a 60 day lock for =<80%LTV. Your pmt would be about $222 for 31K and your loan balance after 15 years would be ~$11,483. While your current HEL has a pmt of $206.24 for 31K and your loan balance after 15 years would be ~$22,947.

If I had the slightest confidence in home prices in this area, I'd be all over this.

drjofis said:Itsadragon said:Down to 5.25% today.

And only 1/8th pt to reduce the rate by 1/8th % to 5.125%
And only 1/4th pt to reduce the rate by 1/4th % to 5.0%

This is cheap for rate reduction. You will break even in total interest+points paid at 16-17 months. So unless you plan to refinance sooner than about 1.5 years, paying points is a good deal today.

Yes, you are right. My calculations show breakeven point is 16.175 months for every 0.25% point. Good deal.

with no closing costs and 5.25% this is the hottest mortgage deal i have seen in a while . green to OP .

Yep, called to get answer to previous question. .625 to buy down .375 to a rate of 4.875.

Much better value to stick with .25 to buy down .25, but intended duration of the loan is the ultimate barometer for whether spending 5/8ths to buy 3/8ths of rate protection is worth it.

And yes, confirmed that existing customers don't get a break on Closing costs twice. Too bad - Maryland Harford County Recording Tax is some $2,500 total for my property - $4,000 total Closing costs. I'll need rates to drop a lot further before refinancing my 2/2 4.625% first mortgage becomes preferential. (Bought in at 3.625% 2.5 years ago).

jaydunning said:And yes, confirmed that existing customers don't get a break on Closing costs twice. Too bad - Maryland Harford County Recording Tax is some $2,500 total for my property - $4,000 total Closing costs. I'll need rates to drop a lot further before refinancing my 2/2 4.625% first mortgage becomes preferential. (Bought in at 3.625% 2.5 years ago).

You should be able to avoid recording taxes if the lender is the same and they are not increaseing proceeds above the original proceeds of the loan you are re-finanicing. The lender treats the re-fi as a modification of the original loan.