Experience with PenFed refinance

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alwayshedge
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Experience with PenFed refinance

Post by alwayshedge »

To those who have mortgages with PenFed...

Was the customer service any good? Reason I ask is because I am currently in the process of refinancing and my processor does not return my emails or calls. He gave me a list of what he will need in the initial stages and that's the last I heard from him. I called the 1800 number for an update and found out the appraisal had come back a week ago and I never heard anything from my processor in regards to it. Did I simply get a bad egg or is PenFed as a whole kind of lackluster in the service area?
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retiredjg
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Re: Experience with PenFed refinance

Post by retiredjg »

I'm having a similar experience with a first mortgage, not a refinance. I looked at some old threads which mentioned the same thing. I have been getting "service" but it seems to be delayed. I didn't see any threads that mentioned not getting the work done on time though.

So far I think PenFed mortgage dept is lacking some luster. But I'll wait till this is over before making a final judgement.
gclancer
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Re: Experience with PenFed refinance

Post by gclancer »

You just have to constantly bug them - initiative on their part is non-existent. You'll close in time though. That said, I would refinance with them again since their mortgage products are the best in the market (it's worth the temporary annoyance).
placeholder
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Re: Experience with PenFed refinance

Post by placeholder »

What I found was that it was better not to try to get your assigned processor to do stuff just call the 800 number and talk to the person that answers.
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Go Blue 99
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Re: Experience with PenFed refinance

Post by Go Blue 99 »

I'm in the middle of a PenFed re-fi and the process has been slow. The processor has been very good about returning emails though. As I understand, the popular no closing re-fi promotion has given them a big backlog of applications to go through.
killjoy2012
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Re: Experience with PenFed refinance

Post by killjoy2012 »

Go Blue 99 wrote:I'm in the middle of a PenFed re-fi and the process has been slow. The processor has been very good about returning emails though. As I understand, the popular no closing re-fi promotion has given them a big backlog of applications to go through.
Go Blue 99 - Can you please point me to the no closing re-fi promotion you mentioned. I'm trying to help my father refi his currently mortgage since servicing was recently sold off to a collection agency and they're being a PITA.

I see the no closing cost HELOC and HELs listed on their site, but conventional mortgages are showing as a 1% origination fee. Or did I just miss a promotion?
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midareff
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Re: Experience with PenFed refinance

Post by midareff »

I used them about a year ago for a condo refi. I was locked at 3.0% and they were late but held the rate lock. All was well that ended well.
Working2notWork
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Re: Experience with PenFed refinance

Post by Working2notWork »

We tried using them for a HELOC to purchase a car (1.9%) so we could write off the interest. I will never use them again!

Back story:
We had just moved into the house and had gutted it. The previous home owners were roughly 80 years old and could no longer move up and down the stairs so they decided to go to a retirement home. Great, so that means while they were struggling to get up and down the stairs, their animals were peeing all over the house, basic maintenance was being ignored, etc. Suffice it to say, the whole house had to be updated; stained, smelly wall paper had to be removed, all carpets had to be ripped out etc.

We got it to the point we could move in (all new hardwood, kitchen, bathrooms, livingrooms, etc remodeled) and applied for the HELOC. When the appraiser came over the first thing he said was "wow, you've done a lot of work, but I don't think your area can support what you've done". I joked and laughed it off, not thinking this would affect our appraisal. Long story short the appraisal came in WAY under what we paid for it. We appealed with supporting documentation (like the appraiser using the wrong layout - we put on an addition that he didn't account for - left off over 100 sqft of living space) and PENFED's policy is to go back to the appraiser and ask him if he thinks he did a good job. We asked for another appraiser, but apparently the "rule" is you cannot have another appraisal done on your property within 90 days as it's considered "shopping around". So, not only was the appraisal WAY off, he used the wrong home layout, ignored our upgrades and appraised it based on houses not on par with ours.

Three months later the house appraises for 120K more than PENFEDs appraisal. PENFED took our appraiser fee and in my opinion purposefully low balled us on the house. We could pay extra if we wanted to get the full amount we applied for, but they wouldn't give it to us at their advertised rate. I've called Penfed to file a compaint, I've called my Congressman... no one cares. Apparently that's how Penfed does business.

Buyer beware! :x
Last edited by Working2notWork on Sun Jun 22, 2014 1:46 pm, edited 5 times in total.
fareastwarriors
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Re: Experience with PenFed refinance

Post by fareastwarriors »

Nothing is 100%.
NoVa Lurker
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Re: Experience with PenFed refinance

Post by NoVa Lurker »

We used them 1.5 years ago for a 5-year HEL at 1.99% with no closing fees except the appraisal. This was basically a second mortgage on our home - we used the proceeds to pay off a 6.75% investment loan.

Customer service was horrendous. I must have followed up more than 20 times between the rate lock and closing, and many times the responses were nonsense -- as in, e-mail responses literally didn't make sense, because the person was responding to a question from a loan applicant other than me.

Ultimately, we did close and sign the documents just before the rate lock expired, and I got the 1.99% rate. They sent me an e-mail (among many others) asking me to elect for automatic withdrawals, which I did. Then they took double the amount of money from my checking account on the first payment date. It turns out that I was already automatically enrolled in auto-withdrawal, as part of the 1.99% promotion.

Amazingly, after I thought it was straightened out, they did it again! On the second payment date, they took out twice as much money as expected. After many calls, they never refunded the money, they just credited the first two "extra" payments as prepayments of principal. Trust me, I did not intend to partially prepay a 1.99% home equity loan, right after taking it out! We were fine in terms of cash flow, but it was no thanks to PenFed.

They also never sent me a copy of the appraisal, despite multiple requests. The appraiser also refused to send me a copy, because he said PenFed had to direct him to send it to me, which they never did. I gave up after awhile, since I only wanted to see the appraisal out of curiosity.

Now that it's 18 months later, I am very happy with the 1.99% rate, and there have been no other issues. Most importantly, there were no hidden closing costs - it really was just the appraisal. So I guess it was worth it. Maybe we'd still use them for a refi, if they had the best rate by a good bit, but I'd never use them for an initial mortgage.
Working2notWork
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Re: Experience with PenFed refinance

Post by Working2notWork »

NoVa Lurker wrote: Maybe we'd still use them for a refi...
Look into Provident Funding. If we can force them to fix their business practices then maybe they can get our business again.

As I previously stated. Buyer beware!!
Last edited by Working2notWork on Sun Jun 22, 2014 1:47 pm, edited 2 times in total.
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Go Blue 99
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Re: Experience with PenFed refinance

Post by Go Blue 99 »

killjoy2012 wrote:
Go Blue 99 wrote:I'm in the middle of a PenFed re-fi and the process has been slow. The processor has been very good about returning emails though. As I understand, the popular no closing re-fi promotion has given them a big backlog of applications to go through.
Go Blue 99 - Can you please point me to the no closing re-fi promotion you mentioned. I'm trying to help my father refi his currently mortgage since servicing was recently sold off to a collection agency and they're being a PITA.

I see the no closing cost HELOC and HELs listed on their site, but conventional mortgages are showing as a 1% origination fee. Or did I just miss a promotion?
Killjoy, the no closing promotion (up to $10k actually) is only valid on their 5/5 ARM and their 15/15 ARM. Their fixed mortgages have that 1% origination. Here are the promotion notes from the 5/5 ARM page:

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.

https://www.penfed.org/55-Adjustable-Rate-Mortgage/
fareastwarriors
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Re: Experience with PenFed refinance

Post by fareastwarriors »

Go Blue 99 wrote:
killjoy2012 wrote:
Go Blue 99 wrote:I'm in the middle of a PenFed re-fi and the process has been slow. The processor has been very good about returning emails though. As I understand, the popular no closing re-fi promotion has given them a big backlog of applications to go through.
Go Blue 99 - Can you please point me to the no closing re-fi promotion you mentioned. I'm trying to help my father refi his currently mortgage since servicing was recently sold off to a collection agency and they're being a PITA.

I see the no closing cost HELOC and HELs listed on their site, but conventional mortgages are showing as a 1% origination fee. Or did I just miss a promotion?
Killjoy, the no closing promotion (up to $10k actually) is only valid on their 5/5 ARM and their 15/15 ARM. Their fixed mortgages have that 1% origination. Here are the promotion notes from the 5/5 ARM page:

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.

https://www.penfed.org/55-Adjustable-Rate-Mortgage/

What is an external refinance? Is that the same as cash out refi?
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wilpat
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Re: Experience with PenFed refinance

Post by wilpat »

I did a first mortgage with them a few years ago and a refi about 18 months ago. I had ZERO problems. I may have been just lucky, but they will always be my first choice.
Contrary to the belief of many, profit is not a four letter word!
fmzip
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Re: Experience with PenFed refinance

Post by fmzip »

Penfed has some issues on the front end.

I was declined a refi of $30K for a 5 year loan reason being my income to debt ratio was "bad". I inquired and inquired and for some reason they had that I earned $1100 per month. How they arrived at that I don't know as they had the copies of my paystubs at $3300 bi weekly........

In the end it all worked out but yes, they aren't on top of things.
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retiredjg
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Re: Experience with PenFed refinance

Post by retiredjg »

fmzip wrote:.... but yes, they aren't on top of things.
This is a good description of what is going on with my current first mortgage.

For example I got an email yesterday that referred things I faxed to them last Wednesday, but asking about things I faxed last Friday. I replied within a couple of minutes, but I won't get a reply to that email for another 3 to 5 days if things go like they have. By then, I'll be almost at the end of my due diligence period.

It is very frustrating and I'm trying to withhold judgement till the whole thing is over, but they are definitely not on top of things and I am definitely not impressed.
Working2notWork
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Re: Experience with PenFed refinance

Post by Working2notWork »

If so many people on here are having issues with them how come, as a group, we support them? How do we help put a stop to their poorly run business?
nash031
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Re: Experience with PenFed refinance

Post by nash031 »

I financed my home in 2011 through USAA and refinanced it in 2013 through PenFed. The experiences were night and day.

USAA was horrible. We almost did not close on time but for some really strong legwork and help by our title company and real estate agent. Unresponsive, and more importantly, did not seem to care that their inaction was going to cause my wife and I to find a hotel and live out of trunks for four days even though they "guaranteed" closing on the date in question.

PenFed was very easy, very strong and professional customer service, with little complication and an on-time closing. Of course, it was less stressful because it was a refi and we had a home, but the experience was painless.

Sorry to hear others are having the opposite experience, but as of 11 months ago I had no issues and nothing but good things to say about the refi with PenFed.
Working2notWork
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Re: Experience with PenFed refinance

Post by Working2notWork »

nash031 wrote:... I had no issues and nothing but good things to say about the refi with PenFed.
How much did PenFed pay you for this advert :wink:
fmzip
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Re: Experience with PenFed refinance

Post by fmzip »

Working2notWork wrote:If so many people on here are having issues with them how come, as a group, we support them? How do we help put a stop to their poorly run business?

Because their rates are like no other in some instances!
retiredjg wrote:
fmzip wrote:.... but yes, they aren't on top of things.
This is a good description of what is going on with my current first mortgage.

For example I got an email yesterday that referred things I faxed to them last Wednesday, but asking about things I faxed last Friday. I replied within a couple of minutes, but I won't get a reply to that email for another 3 to 5 days if things go like they have. By then, I'll be almost at the end of my due diligence period.

It is very frustrating and I'm trying to withhold judgement till the whole thing is over, but they are definitely not on top of things and I am definitely not impressed.
This is exactly the same experience I had. The case workers are overloaded. Call them and don't expect your reply on your emails being answered timely. Things get more out of sync with the approach you describe but it's exactly what I went through
Working2notWork
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Re: Experience with PenFed refinance

Post by Working2notWork »

fmzip wrote:
Working2notWork wrote:If so many people on here are having issues with them how come, as a group, we support them? How do we help put a stop to their poorly run business?
Because their rates are like no other in some instances!
I mentioned it above, but I've found Provident Funding to have better rates and WAY better CS
fmzip
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Re: Experience with PenFed refinance

Post by fmzip »

Working2notWork wrote:
fmzip wrote:
Working2notWork wrote:If so many people on here are having issues with them how come, as a group, we support them? How do we help put a stop to their poorly run business?
Because their rates are like no other in some instances!
I mentioned it above, but I've found Provident Funding to have better rates and WAY better CS
Good info, I will keep this in mind for "the next time" :)
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Go Blue 99
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Re: Experience with PenFed refinance

Post by Go Blue 99 »

fareastwarriors wrote:
Go Blue 99 wrote:
killjoy2012 wrote:
Go Blue 99 wrote:I'm in the middle of a PenFed re-fi and the process has been slow. The processor has been very good about returning emails though. As I understand, the popular no closing re-fi promotion has given them a big backlog of applications to go through.
Go Blue 99 - Can you please point me to the no closing re-fi promotion you mentioned. I'm trying to help my father refi his currently mortgage since servicing was recently sold off to a collection agency and they're being a PITA.

I see the no closing cost HELOC and HELs listed on their site, but conventional mortgages are showing as a 1% origination fee. Or did I just miss a promotion?
Killjoy, the no closing promotion (up to $10k actually) is only valid on their 5/5 ARM and their 15/15 ARM. Their fixed mortgages have that 1% origination. Here are the promotion notes from the 5/5 ARM page:

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.

https://www.penfed.org/55-Adjustable-Rate-Mortgage/

What is an external refinance? Is that the same as cash out refi?
That just means you can't re-fi a mortgage that is already with PenFed.
nash031
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Re: Experience with PenFed refinance

Post by nash031 »

Working2notWork wrote:
nash031 wrote:... I had no issues and nothing but good things to say about the refi with PenFed.
How much did PenFed pay you for this advert :wink:
It's funny, because I've banked, insured, and invested with USAA for going on 15 years now and won't ever say anything good about their mortgage department. I have $5.00 in a PenFed savings account and not one bad thing to say about my re-fi experience. Go figure!

I've heard that USAA went through a very rough time in early 2011 with expansion and changeover of their mortgage dept. Perhaps the explosion of interest in PenFed financing has caused the same thing to happen there recently? Hopefully,PenFed is also able to resolve it as I've heard USAA has recently (anecdotally from only a few people).
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Go Blue 99
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Re: Experience with PenFed refinance

Post by Go Blue 99 »

I'm hoping someone familiar with PenFed or the re-fi process in general can help with this question.

I'm in the middle of a re-fi with PenFed. They told me they can't approve me unless I have 20% equity. Home is appraised at $346,000 so they can only offer me a loan of $276,800. My outstanding balance is $288,576. So I need to pay down the loan by $11,776. Do I need to pay down my existing mortgage with Citi? Or can I simply bring that check to the PenFed closing?

I asked my Penfed processor also but it usually takes him a few days to respond.

Thanks in advance.
Working2notWork
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Re: Experience with PenFed refinance

Post by Working2notWork »

Go Blue 99 wrote:I'm hoping someone familiar with PenFed or the re-fi process in general can help with this question.

I'm in the middle of a re-fi with PenFed. They told me they can't approve me unless I have 20% equity. Home is appraised at $346,000 so they can only offer me a loan of $276,800. My outstanding balance is $288,576. So I need to pay down the loan by $11,776. Do I need to pay down my existing mortgage with Citi? Or can I simply bring that check to the PenFed closing?

I asked my Penfed processor also but it usually takes him a few days to respond.

Thanks in advance.
Walk away. PenFed is a ripoff. I bet the house is worth more than what it appraised for, like my example above. Unfort. that's how they make $$


EDIT:
I didn't mean to be brash when I posted this. As you can tell, my previous experience with them still makes my blood boil. I hate the feeling of being "deceived".
Last edited by Working2notWork on Sun Jun 22, 2014 11:38 am, edited 3 times in total.
killjoy2012
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Re: Experience with PenFed refinance

Post by killjoy2012 »

Go Blue 99 wrote: Killjoy, the no closing promotion (up to $10k actually) is only valid on their 5/5 ARM and their 15/15 ARM. Their fixed mortgages have that 1% origination. Here are the promotion notes from the 5/5 ARM page:
Thanks - I didn't catch that as the balance I'm looking to refi is small (~$40k) and I was only looking at HELs, HELOCs, and 10-15 year fixed. The 15/15 ARM sounds interesting, I'm just not sure if I can get my father to follow a 10 year payoff plan when it's a 30 year mortgage by default/billing. It's the simple problems....

I've been a PenFed member for about 3 years now and I can't complain about much. I started with their cc since it was one of the only 5% cash back on gas cards around. Then refi'd my primary mortgage under a 1.99% HEL w/o issue. And then just last year opened an IRA CD with them - again, no issues. And I would have no issues giving them more business.
gclancer
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Re: Experience with PenFed refinance

Post by gclancer »

Go Blue 99 wrote:I'm hoping someone familiar with PenFed or the re-fi process in general can help with this question.

I'm in the middle of a re-fi with PenFed. They told me they can't approve me unless I have 20% equity. Home is appraised at $346,000 so they can only offer me a loan of $276,800. My outstanding balance is $288,576. So I need to pay down the loan by $11,776. Do I need to pay down my existing mortgage with Citi? Or can I simply bring that check to the PenFed closing?

I asked my Penfed processor also but it usually takes him a few days to respond.

Thanks in advance.
I had the exact same situation. You bring the money to closing with you. As an aside, I then turned around and borrowed the money back (it was from my emergency fund) via a 5 year HEL (you can borrow up to 85% LTV on HEL) at 2.49% (mortgage was at 3%). The only cost for the HEL is the appraisal and they accepted the appraisal that was done for the mortgage so the HEL had $0 upfront costs. Long story short, now that I've jumped through all the hoops I'm happy.
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Ketawa
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Re: Experience with PenFed refinance

Post by Ketawa »

Working2notWork wrote:Walk away. PenFed is a ripoff. I bet the house is worth more than what it appraised for, like my example above. Unfort. that's how they make $$
This is ridiculous. PenFed is decidedly not a ripoff. The 5/5 ARM with no closing costs is an amazing deal. Besides, they make more money if the loan goes through successfully. Why else would they offer it? Would you want your employees wasting time on a loan that doesn't close?

I had a similar experience to some others in this thread. I have a 5/5 ARM with NFCU at 3.00%. I tried to refi into the PenFed 5/5 ARM at 2.625%. However, for it to go through, I needed my home to appraise for at least as much as I paid for it 3 months earlier. My original loan was with 10% down and I needed to scrape together quite a bit to get 20%. Unfortunately, the appraisal was too low and I didn't have enough extra cash to bring to closing. I tried to challenge the appraisal, but like another poster stated, PenFed went back to the appraiser and he said "Nope."

Luckily, PenFed didn't charge me for the fees that had been incurred (title search and appraisal). Maybe my loan processor felt bad for me? I would note that my communication with her was excellent; no complaints.

I wonder if Working2notWork can explain how PenFed made money off me. In the end, PenFed was out quite a bit of money due to the title search, appraisal, and their employee's lost time.

I would gladly use PenFed again for a loan, mortgage or otherwise. A low appraisal is a risk no matter who the lender is. My auto loan with them had zero issues.
Working2notWork
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Re: Experience with PenFed refinance

Post by Working2notWork »

Ketawa wrote:I wonder if Working2notWork can explain how PenFed made money off me. In the end, PenFed was out quite a bit of money due to the title search, appraisal, and their employee's lost time.
Ketawa wrote: I tried to challenge the appraisal, but like another poster stated, PenFed went back to the appraiser and he said "Nope."
So you challenge my experience/opinion, yet quote me at the same time???

So remember that $400 you paid for an appraisal? Guess how much of that the appraiser saw? well I asked and they see about 75% of that, which means they make 25% for just ordering the appraisal. Also, if you do the math and YOU TAKE their offer at a higher APR, they make more $$.

I bet if you had your house appraised by some other entity besides the one PenFed makes you use, your house would appraise for more. Give it a shot, we did and we appraised at over 120K more.
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Ketawa
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Re: Experience with PenFed refinance

Post by Ketawa »

Working2notWork wrote:So you challenge my experience/opinion, yet quote me at the same time???

So remember that $400 you paid for an appraisal? Guess how much of that the appraiser saw? well I asked and they see about 75% of that, which means they make 25% for just ordering the appraisal. Also, if you do the math and YOU TAKE their offer at a higher APR, they make more $$.

I bet if you had your house appraised by some other entity besides the one PenFed makes you use, your house would appraise for more. Give it a shot, we did and we appraised at over 120K more.
Read my entire post. I didn't pay anything for the appraisal. And even if I had, was about $100 worth that much of PenFed's time?

PenFed does not counteroffer with a higher APR. 80% LTV is a hard ceiling; you are not eligible for the loan if you do not have 20% in equity. Instead, the counteroffer is a smaller loan. This makes less money for PenFed.
Working2notWork
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Re: Experience with PenFed refinance

Post by Working2notWork »

Ketawa wrote:
Working2notWork wrote:So you challenge my experience/opinion, yet quote me at the same time???

So remember that $400 you paid for an appraisal? Guess how much of that the appraiser saw? well I asked and they see about 75% of that, which means they make 25% for just ordering the appraisal. Also, if you do the math and YOU TAKE their offer at a higher APR, they make more $$.

I bet if you had your house appraised by some other entity besides the one PenFed makes you use, your house would appraise for more. Give it a shot, we did and we appraised at over 120K more.
Read my entire post. I didn't pay anything for the appraisal. And even if I had, was about $100 worth that much of PenFed's time?

PenFed does not counteroffer with a higher APR. 80% LTV is a hard ceiling; you are not eligible for the loan if you do not have 20% in equity. Instead, the counteroffer is a smaller loan. This makes less money for PenFed.
Your cost is built into the percent you pay. Dont be foolish and think 'its free'.

I'm done arguing with you about this. This is one mans opinion (which others have experienced) take it as you will.
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Ketawa
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Re: Experience with PenFed refinance

Post by Ketawa »

Working2notWork wrote:Your cost is built into the percent you pay. Dont be foolish and think 'its free'.
Huh? I didn't pay anything, and you typically can't find a better closing cost and rate combination than PenFed's 5/5 ARM with zero closing costs. In the future, I'll continue to go with the lowest cost lender for my mortgage, and it'll probably be PenFed.
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grabiner
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Re: Experience with PenFed refinance

Post by grabiner »

Ketawa wrote:PenFed does not counteroffer with a higher APR. 80% LTV is a hard ceiling; you are not eligible for the loan if you do not have 20% in equity. Instead, the counteroffer is a smaller loan. This makes less money for PenFed.
When my loan appraised low (on a purchase), PenFed offered to go with the original loan amount with PMI. I chose not to do this, as it would have been very costly; instead, I paid a small tax cost to sell more stock and borrowed only 80% of the appraisal.

Link to my experience; although I got an excellent rate, I cannot recommend them.
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NorCalDad
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Re: Experience with PenFed refinance

Post by NorCalDad »

Similar to other experiences here, we had an extremely slow and delayed refi during a period when rates were at near-historic lows. You have to be very persistent and take initiative. We closed 3 months later than expected. When I got the closing documents, they had increased the rate until I complained and got them to honor their initial quote after explaining we had held up our end of the bargain throughout the process. We've had no problems since closing, find their website reasonably easy to navigate and very much like our rate.

My advice to friends has been to avoid them for home purchase loans - you don't want financing delays ruining a purchase that needs to close in 30 days - but to use them for refis if you are willing to deal with some frustrations in exchange for a great rate.
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steadyeddy
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Re: Experience with PenFed refinance

Post by steadyeddy »

NorCalDad wrote:My advice to friends has been to avoid them for home purchase loans - you don't want financing delays ruining a purchase that needs to close in 30 days.
+1

We just used them to buy our first home and it was a nightmare. After applying online, I emailed once and called three times, but a full week went by before they emailed me with an "intent to proceed" letter. Then another week (and 3 more calls) went by before they sent me a list of documents they needed. I returned all the documents within three hours, but yet another week went by before I finally got a call from my mortgage processor who calmly introduced himself, explained that the next step was for me to submit my documentation, and asked if I had any questions. I informed him I emailed all my documenation a week ago, and he said something like, "Oh yeah, I haven't read all my emails." Well you clearly don't check your voicemail either, so what gives pal?

Let's cut to the chase. The closing was delayed...twice. We very nearly lost the house. My favorite part of the whole process was when PenFed informed me we they were going to miss the closing date for the first time and their suggested reschedule date was FIVE WEEKS later.

:oops: :oops: :oops:

Great rates. No closing costs. Not worth it when they inevitably torpedo your sale.
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retiredjg
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Re: Experience with PenFed refinance

Post by retiredjg »

This sounds almost identical to my experience other than I have not gotten to closing yet. And I'm not involved in the "no closing cost" thing.
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oncorhynchus
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Re: Experience with PenFed refinance

Post by oncorhynchus »

Can't deny that their rates and ARM loan structures are appealing, but I was dissatisfied with their customer service during a recent refinancing attempt. Poor responsiveness by the servicing agent, shenanigans trying to get the appraisal done, and ultimately unacceptable fine print attached to the closing cost reimbursement offer.

Sounds like peoples' experiences with them have been hit or miss, but too spotty a record for me to consider again in the future unless they improve.
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yolli71
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Re: Experience with PenFed refinance

Post by yolli71 »

If you want a great deal, I say definitely give them a shot. If you want a worry-free quick settlement, look elsewhere. They take a long time to close and they're very picky as far as underwriting guidelines (but that's probably why they offer such great deals).

If you're a "clean" applicant (good credit, lower LTV, etc.), you have nothing to worry about except that it may take a while to close. If you have questions about your situation (assets, credit, appraisal, etc.), don't bother applying.

My current mortgage is with them and I've had 2 HELOCs with them over the years...it appears to me that they're understaffed in their mortgage division as their customer service is average at best, but you'll eventually get the great loan program/rate that you expect as long as you qualify.
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LadyGeek
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Re: Experience with PenFed refinance

Post by LadyGeek »

I refinanced with PenFed in late 2011 and had a somewhat positive experience. I had to work through some issues with the flood cert and appraisal, but they were resolved in a reasonable amount of time.This is a standard 15 year fixed 3.0% loan.

What happened between late 2011 and now?
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runner9
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Re: Experience with PenFed refinance

Post by runner9 »

Our 5/5 ARM closed with them in August 2012. It was a bit rough, but I never considered backing out or that it would fall apart, etc. They seemed busy, but they always did get back to me. Since we've had no issues.

So one poster, 8 times in this thread is against them. Fine. Your choice, they paid us $57 at closing (title agent confirmed I was reading HUD-1 correctly) and we've been happy with rate and service ever since.
gronkman
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Re: Experience with PenFed refinance

Post by gronkman »

I closed my 5/5 ARM around August 2012 as well. The only issue was that sometimes it took multiple requests to get confirmation of documentation I sent in, or to get answers to questions.

On the positive side, the only thing I paid at closing was advance interest on my new mortgage. And since the account was set up, no problems at all.
thepommel
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Re: Experience with PenFed refinance

Post by thepommel »

Working2notWork wrote:We tried using them for a HELOC to purchase a car (1.9%) so we could write off the interest.
This was your first problem. Compliance issue on tax return... Can't write off interest from a car purchase.

Kind Regards,
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Watty
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Re: Experience with PenFed refinance

Post by Watty »

When I refinanced with them with the 5/5 ARM about two and a half years ago I did not have any problems with it.


On all the comments about the appraisal problems; there were major changes on the appraisal rules about three years ago after all the mortgage fraud so lots of lenders are getting complaints about the appraisal process now and appraisals being low.
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grabiner
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Re: Experience with PenFed refinance

Post by grabiner »

thepommel wrote:
Working2notWork wrote:We tried using them for a HELOC to purchase a car (1.9%) so we could write off the interest.
This was your first problem. Compliance issue on tax return... Can't write off interest from a car purchase.
Check the IRS rules. You can deduct interest on a loan secured by your home up to $100K no matter what you use it for (except under the AMT, or to produce tax-exempt income such as municipal bonds). You can deduct interest on a loan up to $1M if it is used to buy, build, or improve your home. (And in any case, the credit union wouldn't know about this issue; it would give you a loan, report the interest on a Form 1098, and then you could decide what to do with the money. It is up to you when filing your taxes to determine whether and how any interest you paid is deductible.)
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Working2notWork
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Re: Experience with PenFed refinance

Post by Working2notWork »

thepommel wrote:
Working2notWork wrote:We tried using them for a HELOC to purchase a car (1.9%) so we could write off the interest.
This was your first problem. Compliance issue on tax return... Can't write off interest from a car purchase.

Kind Regards,
Please check again. You most certainly can write off the interest from a HELOC. Google around and check out what others have done.

Goodluck.
Working2notWork
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Re: Experience with PenFed refinance

Post by Working2notWork »

Watty wrote:When I refinanced with them with the 5/5 ARM about two and a half years ago I did not have any problems with it.


On all the comments about the appraisal problems; there were major changes on the appraisal rules about three years ago after all the mortgage fraud so lots of lenders are getting complaints about the appraisal process now and appraisals being low.
I wouldn't have an issue with PenFed if we were allowed to select a neutral third party appraiser. We were forced to use one of "their" selections and could not question the results. As I described above, our house appraised for $120,000 lower than what it should have been. I can understand 10-15K difference as appraising can be very subjective, but I cannot understand a 120K difference. Also, the appraiser used old, outdated information; used unrelated comps
(ie compared our house to houses on main roads, smaller homes, home is 'less' desirable areas, etc) and he didn't take into account any of the upgrades we had made to the house. He only used what the town had on file (The town was slow to update their permit database), which excluded a nice addition.

We wrote a 10 page document to PenFed explaining how the appraisal had inaccuracies. We had our town clerk send in a letter letting them know that all work that had been done - which was omitted - was legal and permitted, etc. We took pictures of our updated house, found our own comps through a Realtor, etc. Their response to our request for another appraisal I think was the knife in our heart. They wouldn't allow us to get another appraisal, but instead went back to the original appraiser. Of course he didn't change his mind, even with the amount of information we presented that was incorrect.

Either way it worked out for us by using another lender, which was able to get us a better rate. Our house appraised for roughly $120,000 more than PenFeds appraiser and we were able to secure the loan we needed.

I'm glad others were able to use them successfully, but I wanted to share my recent story. Reading through these threads, it looks as though others have had similar experiences.
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Re: Experience with PenFed refinance

Post by Working2notWork »

Ketawa wrote:
Working2notWork wrote:Your cost is built into the percent you pay. Dont be foolish and think 'its free'.
Huh? I didn't pay anything, and you typically can't find a better closing cost and rate combination than PenFed's 5/5 ARM with zero closing costs. In the future, I'll continue to go with the lowest cost lender for my mortgage, and it'll probably be PenFed.
I ended up going with Provident Funding which is very competitive and for us, didn't have the 1% origination fee.
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retiredjg
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Re: Experience with PenFed refinance

Post by retiredjg »

Working2notWork wrote:Either way it worked out for us by using another lender, which was able to get us a better rate. Our house appraised for roughly $120,000 more than PenFeds appraiser and we were able to secure the loan we needed.
If you don't mind, walk me through this part.

You told PenFed to get lost. You lost the $375 or whatever you paid for the PenFed appraisal. What else did you lose, if anything? Did you have to extend your due diligence or settlement date? Were you able to get a good rate at another mortgage loan provider?
Working2notWork
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Re: Experience with PenFed refinance

Post by Working2notWork »

retiredjg wrote:
Working2notWork wrote:Either way it worked out for us by using another lender, which was able to get us a better rate. Our house appraised for roughly $120,000 more than PenFeds appraiser and we were able to secure the loan we needed.
If you don't mind, walk me through this part.

You told PenFed to get lost. You lost the $375 or whatever you paid for the PenFed appraisal. What else did you lose, if anything? Did you have to extend your due diligence or settlement date? Were you able to get a good rate at another mortgage loan provider?
After the appraisal came in low and our challenge fell on deaf ears, we waited about 2 months and went with another company (dont want to sound like an advert board, but if you look at my previous responses, you can see who I used). In the end, we lost roughly $400 AND a lot of time doing our own research to PenFed. It's not a huge amount of cash, but still enough to infuriated me.

We didn't have a settlement date deadline as we were applying for a HELOC. Luckily we had time on our side!
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