PenFed 3.00% Mortgage

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PenFed 3.00% Mortgage

Postby midareff » Sat Mar 23, 2013 3:14 pm

I completed a refi today... 3.00% 30 year refi of a condo in South Florida with PenFed. Just like you have to know when to say NO, you have to know when to say YES, IMHO. I had a 20 year note at 3.875% with Chase, this note is $501 a month less..... and good for 30 years.... go figure.

65 and retired.... Yeah I know, and could sell a few things and pay off the note.... BUT... when I look at "expected" returns of a 50/50 equity FI portfolio, and the projected CPI, I am just hard pressed to see how I can't make money on their money looking forward past short term variations and valuations.
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Re: PenFed 3.00% Mortgage

Postby tarnation » Sun Mar 24, 2013 12:48 am

Did they cover all closing? i would like to see an estimate,since there is a repayment clause, but I don't see any estimator on their website.
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Re: PenFed 3.00% Mortgage

Postby Default User BR » Sun Mar 24, 2013 1:46 pm

Sounds solid to me. I am not one of those that think you have to have a mortgage-free house in retirement. If it makes sense with your investments and income streams, then I don't see a problem.


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Re: PenFed 3.00% Mortgage

Postby travellight » Sun Mar 24, 2013 2:41 pm

I think they cover all costs except appraisal which is only $300. I went for this also but I took their 1.99% loan over a 5 year period. 5 years of pain, then I am done, at only 1.99%. My net/total cost for financing around 300K is about 17k; I remember when net financing costs of the entire loan was well over the the loan amount itself. Pretty unbelievable deal, imo. That one is up to 2.49% now so I am glad I bit when I did last September.
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Re: PenFed 3.00% Mortgage

Postby midareff » Sun Mar 24, 2013 5:53 pm

tarnation wrote:Did they cover all closing? i would like to see an estimate,since there is a repayment clause, but I don't see any estimator on their website.



No, they did not but the charges were quite moderate after an attorney friend specializing in real estate got done reviewing charges with them. :wink:
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Re: PenFed 3.00% Mortgage

Postby YDNAL » Mon Mar 25, 2013 11:56 am

midareff wrote:
tarnation wrote:Did they cover all closing? i would like to see an estimate,since there is a repayment clause, but I don't see any estimator on their website.

No, they did not but the charges were quite moderate after an attorney friend specializing in real estate got done reviewing charges with them. :wink:

How about 1% Origination? It's good to cross all t's and dot all i's and it would be helpful to know your take.
PenFed wrote:• 3.375% / 3.495% APR at 0.250 POINTS <-- you got 3%, congratulations
• Receive 50,000 in PenFed credit card rewards points†
• For home purchase or refinancing
• Offers not available on investment properties or refinances of existing PenFed mortgages
• Loan amounts up to $417,000. Higher limits available in select locations. Click here
• 1% Origination Fee <-- :?:
• See disclosure below or click on rate above for payment example
• Link - https://www.penfed.org/30-Year-Fixed-Mo ... nAod0RAA9g
Landy | Be yourself, everyone else is already taken -- Oscar Wilde
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Re: PenFed 3.00% Mortgage

Postby tarnation » Mon Mar 25, 2013 12:19 pm

YDNAL wrote:
midareff wrote:
tarnation wrote:Did they cover all closing? i would like to see an estimate,since there is a repayment clause, but I don't see any estimator on their website.

No, they did not but the charges were quite moderate after an attorney friend specializing in real estate got done reviewing charges with them. :wink:

How about 1% Origination? It's good to cross all t's and dot all i's and it would be helpful to know your take.
PenFed wrote:• 3.375% / 3.495% APR at 0.250 POINTS <-- you got 3%, congratulations
• Receive 50,000 in PenFed credit card rewards points†
• For home purchase or refinancing
• Offers not available on investment properties or refinances of existing PenFed mortgages
• Loan amounts up to $417,000. Higher limits available in select locations. Click here
• 1% Origination Fee <-- :?:
• See disclosure below or click on rate above for payment example
• Link - https://www.penfed.org/30-Year-Fixed-Mo ... nAod0RAA9g

Looks like the 5/5 does not have the oringation fee.
https://www.penfed.org/55-Adjustable-Rate-Mortgage/
Code: Select all
All loans carry a 1% origination fee except the 5/5 Adjustable Rate Mortgage.
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Re: PenFed 3.00% Mortgage

Postby midareff » Mon Mar 25, 2013 12:23 pm

YDNAL wrote:
midareff wrote:
tarnation wrote:Did they cover all closing? i would like to see an estimate,since there is a repayment clause, but I don't see any estimator on their website.

No, they did not but the charges were quite moderate after an attorney friend specializing in real estate got done reviewing charges with them. :wink:

How about 1% Origination? It's good to cross all t's and dot all i's and it would be helpful to know your take.
PenFed wrote:• 3.375% / 3.495% APR at 0.250 POINTS <-- you got 3%, congratulations
• Receive 50,000 in PenFed credit card rewards points†
• For home purchase or refinancing
• Offers not available on investment properties or refinances of existing PenFed mortgages
• Loan amounts up to $417,000. Higher limits available in select locations. Click here
• 1% Origination Fee <-- :?:
• See disclosure below or click on rate above for payment example
• Link - https://www.penfed.org/30-Year-Fixed-Mo ... nAod0RAA9g



See ya waving Landy....

Origination was $65 + one quarter of one point. About $550.....total

I am not at all sure this was ever intended to be anything other than an offer that would be almost impossible to close on. They (PenFed) even required the association to in writing sign off agreeing on notifying them if the BOD's own Fidelity policy is ever changed or modified and had certain coverage requirements for that too. Most of this stuff was listed in the Fannie/Freddie seller's Guidelines on page 899 and 900 (I kid you not) but they required written sign off. It's all done now, right down to starting auto pay on the 10th day of the 15 day grace period. Without the intervention of my attorney (real estate specialist) this would never have happened. Almost 200 emails back and forth.

I see what you copied tarnation... I paid one quarter of one point origination, that's what's on the GFE and what I paid.

FWIW This rate locked 12/9/2012
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Re: PenFed 3.00% Mortgage

Postby zvez » Mon Mar 25, 2013 3:44 pm

Couple months ago I refinanced a penfed 20 year home equity mortgage which was at 6.% with 14 years left. Went with Penfed's 10 year at 3.74%, just looked at the loan paperwork and it shows an origination fee of $121 but according to the final paperwork all the costs associated with the refi were waived.

I only had a balance of 48k on the mortgage and they required $10k cash extra so refinanced for $58k, put most of the $10k back into the loan and only owe 9 years and saved somewhere around $15k.
So I'm very happy. I did struggle with maybe going after the 5 year term but wanted a bit more flexibility.
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Re: PenFed 3.00% Mortgage

Postby madbrain » Tue Mar 26, 2013 2:55 am

Seems amazing. I am at 3.375% 30 year fixed, done with First IB last fall, but they did cover all closing costs.

I know you said the closing costs were low, but do you mind sharing what the amount was, in any way you wish - actual $ out of pocket, percent of total loan amount, or how many months/years of interest they represent.
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Re: PenFed 3.00% Mortgage

Postby Drain » Tue Mar 26, 2013 7:23 am

madbrain wrote:Seems amazing.

It isn't. He says the lock was on 12/9, so while the terms are very nice, they're not outrageously nice. The lender I used for my own refi's got down at least to 3.125 percent with zero points, and may well have hit 3.000 somewhere along the line. I don't know. I do know that I got 3.375 percent with no closing costs and some of my escrow paid, despite having to pay for an extra appraisal. It's not that hard for me to believe that someone managed to land the loan the OP is describing at one time or another.

What made it sound unbelievable to me originally was my assumption that the rate was locked more recently than early December. Minus that assumption, it's just a very nice, well-timed lock. Oh, and good job in getting PenFed to waive most of the origination fee.
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Re: PenFed 3.00% Mortgage

Postby midareff » Tue Mar 26, 2013 11:19 am

Drain wrote:
madbrain wrote:Seems amazing.

It isn't. He says the lock was on 12/9, so while the terms are very nice, they're not outrageously nice. The lender I used for my own refi's got down at least to 3.125 percent with zero points, and may well have hit 3.000 somewhere along the line. I don't know. I do know that I got 3.375 percent with no closing costs and some of my escrow paid, despite having to pay for an extra appraisal. It's not that hard for me to believe that someone managed to land the loan the OP is describing at one time or another.

What made it sound unbelievable to me originally was my assumption that the rate was locked more recently than early December. Minus that assumption, it's just a very nice, well-timed lock. Oh, and good job in getting PenFed to waive most of the origination fee.



PenFed had a 3.125% at no points that day (12/9) as well... also 2.875% at about 2.5 points, maybe 3.0, if I remember correctly. I choose to pay down the financed balance $11K as I had some rebalance market profits on hand, and wound up with about $3K total closing out of pocket, including my attorney's charge. At a $501 monthly mortgage reduction and no payment due for April that's all covered by August. I'll see how things go from now to RMD in 5 1/2 years..... the pencil (and Mr. Market) might say write them a check and wave goodbye then.
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