PenFed 5/5 ARM retention deals?

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I have it on good authority PenFed sends out retention offers to 5/5 customers that are nearing their rate reset date.

I know there's a lot of us that got in on the no-closing-cost 5/5 special about 5 years ago.  Has anyone gone through a rate reset yet?  Have you received any kind of retention offer from PenFed?

I'm resetting in a couple months but 30yr rates are pretty close to what I'll be resetting to, so it's kind of a no-brainer to jump ship.  Wondering if there's anything that they are offering or will offer to keep me as a customer.

 

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My reset is in June 2017 and the offer banner must have showed up online within the last few days. Reset to 2.4375%

dl73 (Aug. 05, 2016 @ 7:23a) |

I got a rate reset offer as well recently. This was at month 50, $200 to lower the rate to ~2.5% (forget the actual num... (more)

Xnarg1 (Sep. 12, 2016 @ 10:00a) |

I never got a reset offer. My rate was 2.125 and will be moving to 3.125 next month.

cheezedawg (Sep. 12, 2016 @ 11:31a) |

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Haven't heard they do this, What authority did you hear from?.  I am also up this fall from a 5/5 I have but I have it 2/3rds covered.  Would be interesting to see what others have got tossed to them.  

I'm thinking of refinancing with them but their closing costs appear high

I would love the details my rate just reset and I thought it was supposed to reset to the lower of the rate plus margin or the current rate but It did not...

I contacted Penfed last week concerning my 5 year ARM. It does not reset until Feb 17 but I wanted to find out what the rate would be if it reset now. My original rate was 2.85% and if it reset now it would be approx. 3.3% (the current 5-Year Treasury Constant Maturity Rate + 2 points). The CSR told me that Penfed would contact me when my rate was do to reset and that they may "have an offer for me", I could not get any more out of her so I will contact them in January and see if I can get more detail. If anyone's rate is resetting soon I would contact Penfed and see if they offer something instead of the regular reset, and as others have requested please let us know if they offer anything.

Link to the PenFed deals on those with 5/5 ARMs - https://ratereset.penfed.org/WelcomeBPage.aspx 

* Lock in your new rate for the next adjustment period
* Get a .0625% (1/16th percent) reduction to today’s 5/5 ARM rate
* No closing costs and a low $250 modification fee

FAQ:

  • How long does the Mortgage Rate Reset process take?
    Approximately 2-5 minutes. Simply use the "Continue" button on the next screen, e-sign the Mortgage Loan Modification Agreement, and you’re done.
  • Am I required to reset my rate?
    No, you are not required to reset your rate. If you don’t take advantage of this program, the interest rate will still adjust based on the terms of your note on 07/12/11.
  • Do I need an appraisal?
    No, an appraisal is not required.
  • Do I need to provide income documents?
    No, income documentation is not required to reset.
  • Do I need to pay any closing costs?
    No, you won’t pay any closing costs. However, there is a fee of $=14px250 to modify your loan. The fee will be assessed on your loan and you can pay the fee with your next monthly mortgage payment. You may also send in a separate payment for the fee with your Mortgage Loan Number. The fee will reflect on your monthly mortgage statement until it has been received.
  • Will I start over with a new 30-year amortization?
    No, you do not start over with a new 30-year amortization when you reset. Your maturity date will not be changed.
  • Is there a time limit for completing the process?
    This offer is available for a limited time – The offer must be accepted prior to 45 days before your initial interest rate adjustment date. The interest rate for the offer changes daily and is available for the specified rate on the date of acceptance. This offer may change or be cancelled at any time without prior notice.
  • Who do I call if I have more questions?
    Our Mortgage Loan Care Specialists are available at (800) 585-9055.

Link to Current Rates: Current Rates 

slappycakes said:   Link to the PenFed deals on those with 5/5 ARMs - https://ratereset.penfed.org/WelcomeBPage.aspx 

* Lock in your new rate for the next adjustment period
* Get a .0625% (1/16th percent) reduction to today’s 5/5 ARM rate
* No closing costs and a low $250 modification fee

FAQ:

  • How long does the Mortgage Rate Reset process take?
    Approximately 2-5 minutes. Simply use the "Continue" button on the next screen, e-sign the Mortgage Loan Modification Agreement, and you’re done.
  • Am I required to reset my rate?
    No, you are not required to reset your rate. If you don’t take advantage of this program, the interest rate will still adjust based on the terms of your note on 07/12/11.
  • Do I need an appraisal?
    No, an appraisal is not required.
  • Do I need to provide income documents?
    No, income documentation is not required to reset.
  • Do I need to pay any closing costs?
    No, you won’t pay any closing costs. However, there is a fee of $=14px250 to modify your loan. The fee will be assessed on your loan and you can pay the fee with your next monthly mortgage payment. You may also send in a separate payment for the fee with your Mortgage Loan Number. The fee will reflect on your monthly mortgage statement until it has been received.
  • Will I start over with a new 30-year amortization?
    No, you do not start over with a new 30-year amortization when you reset. Your maturity date will not be changed.
  • Is there a time limit for completing the process?
    This offer is available for a limited time – The offer must be accepted prior to 45 days before your initial interest rate adjustment date. The interest rate for the offer changes daily and is available for the specified rate on the date of acceptance. This offer may change or be cancelled at any time without prior notice.
  • Who do I call if I have more questions?
    Our Mortgage Loan Care Specialists are available at (800) 585-9055.

Link to Current Rates: Current Rates

  
This is interesting - so you pay $250 and get the current rate less .0625.  Is it the current promo rate?  aka 2.75% currently?  And most importantly, does it affect the next rate-reset date.  So if I'm up for reset 12/2016 and I get in on this does my rate get bumped down for only a few months?

It's off the current rate and doesn't affect the next rate reset date (e.g., my new rate is 2.6875% for 63 months).

n/m

slappycakes said:   Link to the PenFed deals on those with 5/5 ARMs - https://ratereset.penfed.org/WelcomeBPage.aspx 

* Lock in your new rate for the next adjustment period
* Get a .0625% (1/16th percent) reduction to today’s 5/5 ARM rate
* No closing costs and a low $250 modification fee

FAQ:

  • How long does the Mortgage Rate Reset process take?
    Approximately 2-5 minutes. Simply use the "Continue" button on the next screen, e-sign the Mortgage Loan Modification Agreement, and you’re done.
  • Am I required to reset my rate?
    No, you are not required to reset your rate. If you don’t take advantage of this program, the interest rate will still adjust based on the terms of your note on 07/12/11.
  • Do I need an appraisal?
    No, an appraisal is not required.
  • Do I need to provide income documents?
    No, income documentation is not required to reset.
  • Do I need to pay any closing costs?
    No, you won’t pay any closing costs. However, there is a fee of $=14px250 to modify your loan. The fee will be assessed on your loan and you can pay the fee with your next monthly mortgage payment. You may also send in a separate payment for the fee with your Mortgage Loan Number. The fee will reflect on your monthly mortgage statement until it has been received.
  • Will I start over with a new 30-year amortization?
    No, you do not start over with a new 30-year amortization when you reset. Your maturity date will not be changed.
  • Is there a time limit for completing the process?
    This offer is available for a limited time – The offer must be accepted prior to 45 days before your initial interest rate adjustment date. The interest rate for the offer changes daily and is available for the specified rate on the date of acceptance. This offer may change or be cancelled at any time without prior notice.
  • Who do I call if I have more questions?
    Our Mortgage Loan Care Specialists are available at (800) 585-9055.

Link to Current Rates: Current Rates

  
How can I qualify for this.  It seems the program is by-invitation-only.  Went to the link, and while I could see the text, I could not got to the next page...
 

highstatuspol said:   I have it on good authority PenFed sends out retention offers to 5/5 customers that are nearing their rate reset date.What authority ?

Seeking advise: My current 5/5 Jumbo rate = 2.625%, resetting in 2 years (on 07/2018). In about 2 year's time, I expect rates to increase upwards. Do you guys think it's a good deal to refinance? (current Jumbo rate = 2.875%).

xoneinax said:   highstatuspol said:   I have it on good authority PenFed sends out retention offers to 5/5 customers that are nearing their rate reset date.What authority ?

Login to your account and there will be a banner/box if there is an offer for you. I didn't receive a letter.

Penfed actually called me to offer this rate mod to me. They called about 3 weeks ago. My rate was up for the first reset in July. $250 fee, fairly simple paperwork, and I got a rate of 2.6875%. I thought that was pretty good. It does not change the date of the 2nd rate reset - that will be another 5 years from July for me. I was really pleased at Penfed's service. I had BOA previously, and they had no interest in offering me a rate reset, which is why I refi'd to Penfed in the first place.

For those of you who had received a rate reset off from PenFed, did you apply 5/5 ARM with Rate Reset option or none?

I am planning to buy a new house with 5/5 ARM, and wondering if I have to specify the plan with Rate option.

I don't recall anything about a rate reset option when I applied, but it was 5 years ago. I looked up the email I got from Penfed when I applied, and they called it "5/5 Year Adjustable Rate - Conforming mortgage".

Modern said:   Penfed actually called me to offer this rate mod to me. They called about 3 weeks ago. My rate was up for the first reset in July. $250 fee, fairly simple paperwork, and I got a rate of 2.6875%. I thought that was pretty good. It does not change the date of the 2nd rate reset - that will be another 5 years from July for me. I was really pleased at Penfed's service. I had BOA previously, and they had no interest in offering me a rate reset, which is why I refi'd to Penfed in the first place.
  
Same here, although I lost some time because I had heard nothing about this before and assumed it was some sort of scam.  I asked them to send me the paperwork, but didn't give them any contact information over the phone.

They emailed me the modification documents, I signed and emailed them to a penfed.org address.  After about a week, my mortgage showed the 2.6875% rate online.  Really odd number, so not sure how they came up with that.

$250 is charged to the principle.  Didn't affect any of my auto payments for the mortgage.

 

I wonder why they're being so aggressive with these offers.  I can think of three reasons:

  • Fear of loss of customers
  • Desire to lock in revenue streams for a further 5 years
  • Fear that the rate will reset naturally even lower than what they are offering

I tend to think it would be the last.  My 5/5 with them resets naturally for the first time in Aug17, and I'm at 2.875%.  What do you guys think?

kenblakely said:   I wonder why they're being so aggressive with these offers. It's not a bad offer, but it's not an aggressive one, and has been around for years, although they keep tweaking the particulars. Think of it as an option to lock your rate in advance, as opposed to floating it. This offer is designed for people who want to exercise some degree of control over their rate resets, as opposed to just letting them reset automatically.
  

kenblakely said:   I wonder why they're being so aggressive with these offers.  I can think of three reasons:

  • Fear of loss of customers
  • Desire to lock in revenue streams for a further 5 years
  • Fear that the rate will reset naturally even lower than what they are offering

I tend to think it would be the last.  My 5/5 with them resets naturally for the first time in Aug17, and I'm at 2.875%.  What do you guys think?

  
Definitely not 3.  They called me and offered about 1/4% less than what my rate reset would have been.  My rate reset was supposed to be this month.  
 

Don't count out the fear factor - many of us who got in on the earlier 5/5 ARMs (2007) and rate modifications thereafter are still running 5-year-CMT plus one percent with no floor (the later 5/5s from that time period were 5-year-CMT plus two percent).

I'm sitting at 3% with a rate reset determined in December, effective February, that would be 2.25% or 2.375% (I haven't done the math) if it was taken today, locked for another 5 years

JimTravel73 said:   Don't count out the fear factor - many of us who got in on the earlier 5/5 ARMs (2007) and rate modifications thereafter are still running 5-year-CMT plus one percent with no floor (the later 5/5s are 5-year-CMT plus two percent).Are you sure about the index on all of those? Over the years Penfed has used various CMT indices as well as the prime rate, so each index required it to use a different margin.

SangioveseW said:   
JimTravel73 said:   Don't count out the fear factor - many of us who got in on the earlier 5/5 ARMs (2007) and rate modifications thereafter are still running 5-year-CMT plus one percent with no floor (the later 5/5s are 5-year-CMT plus two percent).
Are you sure about the index on all of those? Over the years Penfed has used various CMT indices as well as the prime rate, so each index required it to use a different margin.

  
I can only speak with certainty on my own mortgage, which is a 5-year CMT plus 1%, as I said, but when the rate modification thread started (when it was a fee of 1% of principal), there was a period where they were offering 5-year-CMT plus 2%.  I should edit my post to sound less like *ALL* 5/5 ARMs Penfed has put out are one or the other - I can't speak to the recent ones.  

I agree with the comments that it's not Penfed trying to reset the rate higher than it normally would be. Obviously there is some risk that in the time between the rate mod and the natural reset, it's possible that the rate could float down. That's a calculated guess on your part. I understand they normally send a letter 45 days out from reset to confirming the rate. In my case, I just got that letter today (it must have crossed in the mail with my rate mod agreement). My original rate was 3.5%. The natural reset would have put me at 3.125%. The rate mod got me 2.6875%. I'm pleased as punch.

Rate RESET (https://ratereset.penfed.org/WelcomeBPage.aspx ) page seems to be dead!

----------------
We are sorry but a system or time-out error has occurred or no record could be found.
Error: Loan Record Was Not Found.
Please exit and contact your system administrator for additional support.

It was never 'alive' unless you got the invitation.

Can anyone report on the earliest someone got this offer? Meaning how long between when you were offered this and when your rate was supposed to reset? It looks like so far someone has mentioned a letter going out at 45 days, but if someone got a call three weeks ago for a July reset, it looks more like 90 days?

Bowen, I think I may have confused you.  My first 5 year term expired on Jun 1, meaning the reset would take effect then for the Jul 1 payment.  The letter was meant to be sent 45 days in advance of the first term expiration (so mid-Apr for a term expiry of Jun 1).  I got called on Apr 8 and received the agreement by email on Apr 10.

For Reference I have the $250 offer now and I am due for a reset in about 6 months on a 5/5.

DP: I am due for a reset on April 2017 and just got an offer yesterday.

http://screencast.com/t/mZhjYK7hj0i
 

I tried it once .. didn't work out. very very slow process, and when their inspector went to my vacation house .. that house was only about 7-8 years old - pretty much brand new. They looked at outside, it had small lines of crack - those that happen when i guess the structure settles .. and they guy wont approve it. I asked what he needs, he claimed he needs an engineering report. I produced one - and they guy was still not happy. I told the inspector go look around all the houses, that's common thing - he wont budge. I gave up. On my next visit, i bought a $5 stucco pate from homedepot .. pasted over those line, and Citi mortgage came through, did inspection and no issue. I ended up with a 7/1 year ARM which will be resetting in about a year.

Perhaps i might give this another shot.

I just took advantage of this. I was due for a reset in April 2017 and my previous rate was 3%. My new rate is 2.6875%. I like the piece of mind that I'm locked in for 5 more years at an even lower rate.

Has anyone been able to call them and get a reset or is it by invitation only?

Thanks!

My reset is in 2 years and I called with no luck.

Does this offer come in via email? I am up in April 17

Oh man, their promo rate just dropped to 2.625% so anyone getting this offer now will be locked in at 2.5625 for the next 5 years.

I'm pretty ticked I *just* locked in at 2.6875% ...

PatrickBateman said:   Does this offer come in via email? I am up in April 17
I got a voicemail about a month before the reset.  Wouldn't hurt to give them a call - (800)585-9055

On new 5/5's, they no longer covering closing costs, right?

Did any of you that received the rate reset / retention program do a rate modification during the initial 5 years to get a lower rate? Talking to PenFed, they said I may be ineligible due to doing a prior rate modification. Just curious if that was the case for anyone else.

Skipping 12 Messages...
I never got a reset offer. My rate was 2.125 and will be moving to 3.125 next month.



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