ahoodlum: I wouldn't count on that. They actually screwed up and when they sent me my lock rate confirmation and quoted me the wrong rate. So I attempted to see if that would void the lock...nope they just went back to the documentation and the rates on the date and corrected it.
See if buying the 0.625% rate protection will still benefit you. In my case, yeah it cost me a lot of money, but I will still get a super low rate, lower payment and still make back the cost of my error in just over 3 years.
Young: Cool, thanks. I'm actually trying to get my seller to switch title companies to Penfed's preferred company so I can get that cost credited, but the company is a longer drive (15 mins) than the one in our contract so they don't want to change...blah!
hoodlum, awaiting assignment of UW can be canceled. you lose whatever little money u paid on Credit Card. I think u can start a new app.
as for Index and Margin, Mine is very clearly written in Commitment letter. 5year Treasury and 1.75% the index generally is in sync with loan rate fixed duration (5 years in this case)
yes, my GFE and actual closing were VERY close for purchase in march-april this year. I am looking for Refi now but nor sure what costs will be there.
Octa, you shud be able to FORCE the seller to accept your choice of settlement agent (I assume that is what you mean when u say Title company) and lot of title agents make house calls now! last 3 closing I did were on my dining table!!
Does any one know what closing costs will be picked up by penfed for a refinance? I started an application and it says from time to time they may cover part of the closing fees, but I couldn't find any information on that.
Amby: Problem is...the settlement agency (title company in VA) is listed in the ratified contract. So I would have to get them to sign an addendum to change it. However, I do like your thought about the house call. That might be a good play!
I've been watching for months. I had to jump on it. Stayed up past midnight to complete the application. I grabbed 3.875% for .25 points. Those were incredible rates yesterday!
EDIT: 10/02/09 - Got a call this morning - processing has begun - estimated closing 30 days 10/02/09 - Appraiser called this afternoon. Scheduled for tomorrow! 10/03/09 - Appraiser arrived - did his thing - waiting now for report. 10/08/09 - Received appraisal report. A little low but not a problem. They are ready to close next week! UFB! 10/09/09 - Possibly closing on 10/14/09 10/12/09 - Closing set for 10/14/09 10/14/09 - Closing COMPLETED
I applied for the 5/5 on 9/30 and I did not get an instant approval. Until today, there is no word whether the application is approved or not. Anyone received an instant approval?
scanchain said: I applied for the 5/5 on 9/30 and I did not get an instant approval. Until today, there is no word whether the application is approved or not. Anyone received an instant approval? Yes, I got an instant approval. I applied late on 9/30 for the 5/5. In fact, my appraisal was done this morning!
scanchain said: I applied for the 5/5 on 9/30 and I did not get an instant approval. Until today, there is no word whether the application is approved or not. Anyone received an instant approval? Updating my own question.
Penfed called me after 6 days with me not knowing if I am approved or not (they did not answer my email inquiries and I gave up waiting on the phone line).
I told them I already went with another lender. They waived the $65 application fee at my request.
I applied on 9/30 and wasn't approved instantly. I got a voice mail from a "Mortgage Specialist" yesterday and he didn't return my call yesterday despite me leaving a message. I was finally able to reach him today morning and he said that everything has been approved and the loan processor will be contacting me for further work.
I had initially wanted to close in December as we are travelling in November, however he asked if we can close by October 27th instead. Our LTV is around 64%, he said that they usually have no problems waiving the escrow account for that LTV.
PS: We bought this house on July 31st 2009 and we are currently with ING Direct 5/1 ARM at 4.375%. However 5/5 at 4.0% looks more appealing to us because of the reduced monthly payment (approx $150) and that over the next 10 years (our time horizon) the rates will be capped at 6%.
I'm in the same situation. Does anyone know if I refi with Penfed again, will they still waive most of the closing cost? I paid <$1000 closing cost with Penfed when refied with them the first time in March.
Thanks.
Amby said: I am sitting at 4.5% from March2009. it was a great rate for that time. I am also dumbstruck at the precipitous drop in last 2 days.
Just called them to ask for rate reset advice. full new Refi is the only way. Dang... gotta do the math now (closing cost, recoupment period etc)
tazzy531 said: KHTC said: * This thread has been quiet . . . did anyone else get in under 4% on 9/30? . . . I got in at 4%. 4.00% ---- very nice ---- I was hoping someone would join me under 4.00%!!! I thought that we'd have a bunch of FW'ers jumping at this but maybe not since many jumped in at 4.25% and 4.125%
My process is going real fast. They are talking about closing on Wednesday which would be 14 days!
Big time note for everyone who already has a PenFed mortgage and is considering a refinance:
As of last week, according to my loan processor, PenFed has started offering loan modifications on their 5/5 product (if you qualify). The terms are the same as the existing modification program for fixed loans, that is, you pay 1% of your loan amount, and they reamortize your loan to the new interest rate WITHOUT an increase in term (same payoff date). The best part is that I confirmed that the 5-year period before a rate adjustment is RESET. You get the adjusted rate for a full 60 months without the headaches of a refinance. This was a deal for me because it knocks 1.5% off my loan's interest rate but allows me to keep the 1% margin on future rate adjustments AND it saves most of the paperwork.
She said they are running a couple of weeks behind, so I will not be able to report on my experience for some time. However, if this plays out according to what I'm told, lots of folks could be saving some money.
UPDATE: Received call (same day) from PFCU regarding modification. They had my locked rate incorrect, but agreed to correct it. He confirmed that I will receive documents to sign in the latter half of November for a December 1st effective date. He confirmed that in addition to my nominal rate change, my maximum rate will also be adjusted down 1.5% so that the maximum my loan can ever be is 9%. He also confirmed what was said about about a fresh 60 months on the rate adjustment clock and confirmed that my margin over 5-year CMT does NOT change.
Also, fee payment may be by ACH or check OR it can be rolled into your loan. Mastercard or Visa payments are possible, but are treated as cash advances.
JimTravel73 said: Big time note for everyone who already has a PenFed mortgage and is considering a refinance:
As of last week, according to my loan processor, PenFed has started offering loan modifications on their 5/5 product. The terms are the same as the existing modification program for fixed loans, that is, you pay 1% of your loan amount, and they reamortize your loan to the new interest rate WITHOUT an increase in term (same payoff date). The best part is that I confirmed that the 5-year period before a rate adjustment is RESET. You get the adjusted rate for a full 60 months without the headaches of a refinance. This was a deal for me because it knocks 1.5% off my loan's interest rate but allows me to keep the 1% margin on future rate adjustments AND it saves most of the paperwork.
She said they are running a couple of weeks behind, so I will not be able to report on my experience for some time. However, if this plays out according to what I'm told, lots of folks could be saving some money.
Interesting that they do this. But dependent on your closing costs this can be a close call compared to a refinance. In my case refinancing would be cheaper then 1%.
GermanExpat said: JimTravel73 said: Big time note for everyone who already has a PenFed mortgage and is considering a refinance:
As of last week, according to my loan processor, PenFed has started offering loan modifications on their 5/5 product. The terms are the same as the existing modification program for fixed loans, that is, you pay 1% of your loan amount, and they reamortize your loan to the new interest rate WITHOUT an increase in term (same payoff date). The best part is that I confirmed that the 5-year period before a rate adjustment is RESET. You get the adjusted rate for a full 60 months without the headaches of a refinance. This was a deal for me because it knocks 1.5% off my loan's interest rate but allows me to keep the 1% margin on future rate adjustments AND it saves most of the paperwork.
She said they are running a couple of weeks behind, so I will not be able to report on my experience for some time. However, if this plays out according to what I'm told, lots of folks could be saving some money.
Interesting that they do this. But dependent on your closing costs this can be a close call compared to a refinance. In my case refinancing would be cheaper then 1%.
Certainly true for people with higher-priced houses -- but it also offers a way (albeit an expensive one) to circumvent a readjustment of your LTV (as far as PFCU is concerned) in a declining market, avoid PMI, etc, for people who are floating close to 80% LTV and may actually be higher, even if they weren't when they got the loan in the first place.
I submitted app for a 5/5 ARM this morning...an hour later the website shows that loan went down from 4.625 to 4.5. I know there is a 90 day lock - is there anything that can be done at all? I know you can't win 'em all but just checking...the rep on the phone told me if I canceled the loan and reapplied under the new rate I couldn't apply for another one for 90 days...
JimTravel73 said: Also, fee payment may be by ACH or check OR it can be rolled into your loan. Mastercard or Visa payments are possible, but are treated as cash advances.
It was reported by Wethead in the Penfed Loan Mod Fixed Rate Thread that he used his Schwab 2% card and it was treated as a purchase.
We finally signed the papers on Monday after locking in at 4% for our refinance. The appraisal took longer than expected and even after that processing was slow by Penfed. Same was true with the title company as well (FIServ). We were supposed to close initially on Oct.27th and the title company had obtained the payoff amount for that closing day, however since that closing was delayed, they never got an updated payoff amount from our current mortgage provider (ING Direct). So if your closing gets delayed, be sure to request for an updated payoff amount before they draw the final loan papers.
As far as communication goes, none of my voice mails were ever returned, however emails got reasonably prompt responses from both Penfed and FiServ.
dhl said: JimTravel73 said: Also, fee payment may be by ACH or check OR it can be rolled into your loan. Mastercard or Visa payments are possible, but are treated as cash advances.
It was reported by Wethead in the Penfed Loan Mod Fixed Rate Thread that he used his Schwab 2% card and it was treated as a purchase.
I find this interesting, because the documentation I received and have since returned, actually stated that it would be treated as a cash advance.
In any case, I received the paperwork Nov 12th, mailed all three pages (!) back with a check on the 14th, and the modification showed up yesterday with a "FEE PAID" notation on the PenFed website. Because of the way interest accrual works on the mortgage, the change is actually retroactive to November 1st, since it is November's interest that is reflected in December's payment.
1% fee to readjust the loan would probably be good for people with low balances. For high amount loans (300-400k+, very common in CA) probably it wouldn't be enough to hold the savvy customer. I just got done with a very low cost (about $500) refi for a conforming jumbo loan. Since penfed usually waives of fee for new loans, how about this strategy for penfed loan holders -- refi to other bank's 5/1 arm at low cost. then after few months when you cover your refi cost, switch back to penfed's 5/5 ? Of course this assumes that penfed still keeps the policy of waiving off fee and that rates will be low after few months.
Locked 4.0% 0.0 points OO 5/5 ARM refinance in Virginia today. Got a rate alert in my e-mail that I had set the last and only time (in September, I believe) this rate was offerred. It is not displayed on the web site and I called and confirmed it. You can see the rate by going through the calculator function. Don't know what's causing the discrepancy, but LOCK!!
ETA: this is conforming AND jumbo.
PPS: It does show 4.0% 0.0 points on the page linked in the OP: http://www.penfed.org/productsAndRates/mortgages/firstMortgageLoans55ARM.asp
Low Closing Costs: Applications for investment properties or refinancing of existing Pentagon Federal mortgages are not eligible for this promotion. PenFed pays credit report, flood search, tax set up, and appraisal fees. We pay settlement attorney fees if one of our preferred providers is used. In the event a second appraisal is required or additional attorney fess are levied the applicant will be responsible for any future costs. The applicant is responsible for the following fees and costs at the time of closing: Origination fee (Fixed rate loans only), Title costs, recording fees, survey or pest inspection costs, escrow reserves and interest due until first payment, other cost may be included on a case-by-case basis. Escrow will only be waived at 75% LTV. If a loan is withdrawn, does not close, or the purchase contract is terminated, all third-party fees and costs incurred will become the responsibility of the applicant. If you apply, I suggest saving off this information in case their policies change while you are in the loan process.
Yes, but their rate page (now updates to 4%) shows the origination fee back again. I know it was on for a little while and then off again, is it now back on ?
JimTravel73 said: dhl said: JimTravel73 said: Also, fee payment may be by ACH or check OR it can be rolled into your loan. Mastercard or Visa payments are possible, but are treated as cash advances.
It was reported by Wethead in the Penfed Loan Mod Fixed Rate Thread that he used his Schwab 2% card and it was treated as a purchase.
I find this interesting, because the documentation I received and have since returned, actually stated that it would be treated as a cash advance.
In any case, I received the paperwork Nov 12th, mailed all three pages (!) back with a check on the 14th, and the modification showed up yesterday with a "FEE PAID" notation on the PenFed website. Because of the way interest accrual works on the mortgage, the change is actually retroactive to November 1st, since it is November's interest that is reflected in December's payment.
Where's my easy button?
How did you initiate the process? I would like to do it too but I don't know who to contact
GermanExpat said: Yes, but their rate page (now updates to 4%) shows the origination fee back again. I know it was on for a little while and then off again, is it now back on ?
1% Origination Fee on all Fixed Rate Mortgages and 5/1 and 5/5 ARM loans.
So now there are three different statements:
1. 1% Origination fee for fixed rate loans only. (Venturion's originally-linked web page.)
2. 1% Origination fee for all Fixed Rate Mortgages, Jumbo 5/1 ARMs, and Jumbo 5/5 ARMs carry a 1% origination fee. (Your linked page.)
3. 1% origination fee for all Fixed Rate Mortgages, 5/1 ARMs, and 5/5 ARMs.
Edited to correct statement 3.
If I were applying, I'd save off number 1, and attempt to hold them to that. The inconsistencies in their wording is unacceptable IMO, and they should honor the most favorable terms.
JimTravel73 said: Big time note for everyone who already has a PenFed mortgage and is considering a refinance:
As of last week, according to my loan processor, PenFed has started offering loan modifications on their 5/5 product (if you qualify). The terms are the same as the existing modification program for fixed loans, that is, you pay 1% of your loan amount, and they reamortize your loan to the new interest rate WITHOUT an increase in term (same payoff date). The best part is that I confirmed that the 5-year period before a rate adjustment is RESET. You get the adjusted rate for a full 60 months without the headaches of a refinance. This was a deal for me because it knocks 1.5% off my loan's interest rate but allows me to keep the 1% margin on future rate adjustments AND it saves most of the paperwork.
She said they are running a couple of weeks behind, so I will not be able to report on my experience for some time. However, if this plays out according to what I'm told, lots of folks could be saving some money.
UPDATE: Received call (same day) from PFCU regarding modification. They had my locked rate incorrect, but agreed to correct it. He confirmed that I will receive documents to sign in the latter half of November for a December 1st effective date. He confirmed that in addition to my nominal rate change, my maximum rate will also be adjusted down 1.5% so that the maximum my loan can ever be is 9%. He also confirmed what was said about about a fresh 60 months on the rate adjustment clock and confirmed that my margin over 5-year CMT does NOT change.
Also, fee payment may be by ACH or check OR it can be rolled into your loan. Mastercard or Visa payments are possible, but are treated as cash advances.
Can you explain what you mean by "WITHOUT an increase in term (same payoff date)"?
I am in a similar situation as you. I'm on my 4th year of my 5.5% 5yr ARM and I'll be going thru this rate modification starting Feb 2010. My new 5yr ARM interest rate will be 4%. But if I understood my Penfed rep correctly, he says my everything will reset including the terms. So my 30yrs will start all over again (if that's what he means).
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