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MBS -3/32s

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Sorry for the post-closing recap, i thought i had written earlier but must not have hit post.

MBS opened negative, mostly -2 to -4 range, only to do a 180 and surge to +9/32s by mid-day. Many investors repriced at the highs, but then as the afternoon went on, MBS faded back to +2/32s and several took back their earlier pricing improvements.

Still ended + on the day, just lost some nice gains.

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  1. no closing cost (they are offering up to 10K to pay for closing costs) and the 1% origination is currently waived for the 5/5 ARM product.


  2. the rate 2.75% (as of right now) would be locked for 5 years, and the max it could go up in year 6-7 (after the 1st adjustment) is 4.75% assuming you pay off in 7 years as expected.

  If you can find another product where your overall costs is lower, then go for it. However, I'd find that very difficult to beat.

   At 2.75% you might even be able to pay down the principal faster than you predicted during the 1st 5 years.

  
applying 5/5 ARM from Penfed, looks like they do not pay closing cost, none of these (title transfer, title insurance, appraisal) are covered.  am I missing something

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incoon said:   



  1. no closing cost (they are offering up to 10K to pay for closing costs) and the 1% origination is currently waived for the 5/5 ARM product.


  2. the rate 2.75% (as of right now) would be locked for 5 years, and the max it could go up in year 6-7 (after the 1st adjustment) is 4.75% assuming you pay off in 7 years as expected.

  If you can find another product where your overall costs is lower, then go for it. However, I'd find that very difficult to beat.

   At 2.75% you might even be able to pay down the principal faster than you predicted during the 1st 5 years.

  
applying 5/5 ARM from Penfed, looks like they do not pay closing cost, none of these (title transfer, title insurance, appraisal) are covered.  am I missing something

  
Read the fine print -- I've copied here for you:

Penfed 5/5 ARM Details 
Penfed Fine Print said: 5/5 Adjustable Rate Mortgage (ARM) Closing Cost Promotion: Offer available for purchases and external refinances only. PenFed will pay your closing costs up to $10,000 including but not limited to: appraisal fee, tax service fee, CLO access fee, title fees, transfer tax fees, credit report fee, flood cert fee, recording fee, survey if required and work verification fee. This does not include: escrow interest, homeowner's insurance or owner's title insurance, the cost for a structural engineering or similar report, should the appraiser request one, or points to buy a rate down or applied to a loan. Points are the responsibility of the borrower and not covered in promotions. Builder or seller credits may reduce the amount of the closing cost credits. This promotion is not available for investment properties. Other restrictions also apply. Contact your PenFed mortgage consultant for any applicable additional restrictions and details about your loan. You must use one of our preferred title companies to get the closing cost credits. For New York properties, borrowers are required to pay title insurance premiums and may use any title company to obtain the closing cost credit. Offer is only available for owner occupied primary residence and second homes. Refinance of an existing PenFed mortgage is not eligible for the closing cost credit and borrowers will be required to pay all closing costs. For Limited Cash Out refinances, limitations on the amount of Cash Back at closing may require that all or a portion of the credits be applied toward principle reduction. Note the reimbursement of closing costs below.



Reimbursement of Closing Costs: If you pay this loan off and close the account earlier than the 36-month anniversary date of the loan closing, you will be obligated to pay PenFed a prorated amount of the closing cost credit received from PenFed. This amount will be added to any loan payoff amount requested prior to the 36 month anniversary date. The reimbursement amount will be prorated in equal amounts on a monthly basis. Closing costs credits to be reimbursed include all closing costs paid by PenFed except those paid to affiliated title companies. See contract addendum for details.


 

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thank you, looks like my loan processor from Penfed gave me wrong info.

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MBS -4/32s

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Pen Fed is awful at mortgages.  I have had a half a dozen car loans though them with no issues.  They bit the big one when I was going to refi.  Anyone know any place with better rates and service to try?

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MBS had rallied back to even following Claims, but now -6/32s after the Philly Fed numbers.

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MBS in sell off mode. -15/32s, many investors are on the 2nd round of reprices worse. Reprices have been harsh, with some investors taking in excess of 50-75bps in price off earlier rate sheets.

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clcowing said:   Pen Fed is awful at mortgages.  I have had a half a dozen car loans though them with no issues.  They bit the big one when I was going to refi.  Anyone know any place with better rates and service to try?
  

I must agree.  I have my car and CC's though PenFed.  My first mortgage 10 years ago went OK and had excellent terms.  My refi 3 years ago was terrible.  My processor barely spoke English.  I had to go to the head of the loan dept to get real answers to questions and the options to the products they offered.
Looks like they pulled non-conforming loans now and I called and spoke to a CS rep in mortgages and the person seemed really unsure to the answers he gave about the products they offered. 
Give Morgan Stanley a call, they instilled more confidence and were somewhat competitive with PenFed.

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SoulXtort said:   
9Square said:   
SoulXtort said:   Recommendation for a home loan?

$457k purchase price. Looking to pay it off entirely in the next 7 years. What loan would suit me best?


Penfed 5/5.

  Can anyone access a Penfed? Why is this ideal for me?

Thanks

  
first 60 months 2.875% rate 3.364% APR.   PenFed will pay your closing costs up to $10,000 including but not limited to: appraisal fee, tax service fee, CLO access fee, title fees, transfer tax fees, credit report fee, flood cert fee, recording fee, survey if required and work verification fee.

EDIT: Sorry, I jumped the gun and did not notice this had already been answered.

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MBS +3/32

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I am from Seattle going with PenFed 5/5 ARM and had a couple of questions on the closing costs promotion (450k value). Looks like there are a lot of differences on how loans are done here in Washington state vs others.

1. The seller has already ordered and received Title and the contract calls out the Title Insurance and closing company. Talking to PenFed it looks like we have to use their Title company to get the promotion, any suggestions on what I should do here to get the promotion given the property is in Escrow now?

2. If I do not take the closing cost promotion, are there any origination fee (1%) that are supposed to be paid?

3. Has anyone closed with PenFed in Washington state (Seattle) and can share experience?

Thanks!

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Hi,

I applied to penfed for 5/5 arm 2 days before the no closing costs promotion started. The loan is being worked. But they refuse to apply the promotion as I started my application early. If I cancel my application to get a better promotion, I cannot reapply for 90 days. Is there any other option to get the no closing cost promotion. Pls let me know.

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MBS opened negative (mostly -4 to -2), but have been sitting @ 0/32s for the past hour or so.

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Long time lurker and time to repay the forums as I've saved a lot of money through the years...

I prepared a PenFed 5/5 ARM refi analysis spreadsheet vs keeping your 30 year mortgage. 
It's comprehensive and includes discount and tax rate to capture the mortgage int deduction at your tax rate
Uses NPV for breakeven analysis accurately pushing out the breakeven for me to 19.5 years vs the 14-15 commonly quoted here.
It's basically a no brainer with the current promotion.

If you are buying vs refinancing, you can add the points and non-prepaid closing costs to the 30 year mortgage in year 1 so it's captured in NPV.

Only problem is how do I attach it.. seems the forum doesn't allow attachments? 


 

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teperilloux said:   Long time lurker and time to repay the forums as I've saved a lot of money through the years...

I prepared a PenFed 5/5 ARM refi analysis spreadsheet vs keeping your 30 year mortgage. 
It's comprehensive and includes discount and tax rate to capture the mortgage int deduction at your tax rate
Uses NPV for breakeven analysis accurately pushing out the breakeven for me to 19.5 years vs the 14-15 commonly quoted here.
It's basically a no brainer with the current promotion.

If you are buying vs refinancing, you can add the points and non-prepaid closing costs to the 30 year mortgage in year 1 so it's captured in NPV.

Only problem is how do I attach it.. seems the forum doesn't allow attachments? 


 

  I'd probably add it to google docs as a spreadsheet and share a link to the spreadsheet.

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