PenFed vs NFCU

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Batousai
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PenFed vs NFCU

Post by Batousai » Tue Sep 25, 2012 11:36 am

So I'm in the market for a 5/5 Arm refi (Not the topic of this thread) and based on recommendations I've ended up with PenFed and NFCU as potential lendors (The topic of this thread). It looks in my case, they will both be zero cost loans, and they're offering the same interest rates. I've heard PenFed can be slow if you aren't hounding them day and night. I haven't started to read up on NFCU yet, but have heard a few comments that NFCU is better than PenFed. Can anyone comment on which is easier to deal with, or any differences I should know about between the two?

This isn't about the 5/5 Arm, but to save headaches, assume I know what it is, and it's right for me (I do, and it is). :sharebeer

Dude2
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Re: PenFed vs NFCU

Post by Dude2 » Tue Sep 25, 2012 11:48 am

I've had two or three such transactions through NFCU and have no negatives to report. Since they typically do not have a brick and mortar branch near you, they hire a 3rd party to close your loan. For a refinance, the person comes to your house and you get everything signed/notarized. For a sale, you go through a title company or lawyer. It all went down without a hitch for me, but I realistically expect that it is going to take minimum a month (max two) to get it all done. What kind of timeframe are you expecting?

No experience with PenFed, but I know people like them.

Batousai
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Re: PenFed vs NFCU

Post by Batousai » Tue Sep 25, 2012 12:17 pm

Know someone who recently closed with PenFed, they hammered on them continiously and got it closed in 3 weeks. I've also read a few horror stories about 7 month closing times. I'm looking for someone who would do it in less than 60 days.

The no B&M thing doesn't bother me. I've literally, never had a B&M bank account. Used USAA since I was old enough to have a checking account.

Cottage
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Re: PenFed vs NFCU

Post by Cottage » Tue Sep 25, 2012 4:51 pm

I did my original purchase through NFCU in 2007, and refi'd twice - 2010 and a few months ago. I don't have anything negative to report either. Each time I've found their loan people to be professional and knowledgeable. I was very proactive in making sure they had any information they needed (but didn't nag!), kept in contact mostly via email, with an occasional phone call. My refi this year took about 7-8 weeks, iirc, from phone application, through appraisal, to closing. I know they were very busy then, and I doubt it has let up much with the rates hovering where they are.

I also try to pay extra whenever I can, and like their online account access - just select the 'apply to principal' option, and it plugs right in. Then you see it show up applied to your loan. Haven't had any problems with that yet, all the times I've used it.

I've been with NFCU for (easily) fifteen years at this point, and do all my 'regular banking' with them, with a "backup" account at another local CU, just in case. Can't really complain about them at all, I'm my experience.

Batousai
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Re: PenFed vs NFCU

Post by Batousai » Sat Oct 13, 2012 8:16 am

Well I went with PenFed and we'll see how it goes. Hopefully smoothly :)

tomd37
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Re: PenFed vs NFCU

Post by tomd37 » Sat Oct 13, 2012 9:40 am

Keep us posted up through the actual closing, if you will.
Tom D.

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Taylor Larimore
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Re: PenFed vs NFCU

Post by Taylor Larimore » Sat Oct 13, 2012 11:20 am

Yes,please keep us posted.

We applied for PenFed refinancing their own never-late loan in January and we closed last month. Never again.

One problem was that we had a freeze on our credit reports (they require six reports; 3 each for husband and wife) We would go through the hassle (and cost) of unlocking the freezes for 30 days but PenFed would let the reports sit on their desk until after the 30 days expired. This happened several times.

Best wishes.
Taylor
"Simplicity is the master key to financial success." -- Jack Bogle

29palms
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Re: PenFed vs NFCU

Post by 29palms » Sun Oct 14, 2012 9:14 am

I think NFCU has come a long way with their mortgage products. In the last 10 years or so, they've really improved their product and have virtually made their loans like a VA home loan. No down payments and no pmi insurance. When I talked to the lady about this, she said that they had to do something because the VA moved way too slow and were just not providing a service, so they made it easier for their membership to get home loans. Check out their mortgage web site. They have excellent terms and products available that suit your needs. I can't speak for PENFED though. I did try to refinance with NFCU however, I'm upside down in my mortgage, had to settle with my current mortage company CHASE and refiananced under HARP. NFCU won't refianance upside down mortgages. Too bad they didn't have their current products in mortgages when I bought my home 11 years ago. Would have been great in dealing only with them.

stan1
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Re: PenFed vs NFCU

Post by stan1 » Sun Oct 14, 2012 2:10 pm

One other advantage of NFCU (can't speak to PenFed) is that they don't sell their loans -- so you'll always be dealing with NFCU for service after the loan is made.

travellight
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Re: PenFed vs NFCU

Post by travellight » Sun Oct 14, 2012 2:20 pm

I am in the midst of a penfed refi as well. I think I started it in early August. There was a delay due to requiring my 2011 taxes which I filed in mid September. Appraisal just got done yesterday. I am hoping it will close within 2 weeks. I went for their 1.99% HELOC loan.

NoVa Lurker
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Re: PenFed vs NFCU

Post by NoVa Lurker » Sun Oct 14, 2012 3:17 pm

travellight wrote:I am in the midst of a penfed refi as well. I think I started it in early August. There was a delay due to requiring my 2011 taxes which I filed in mid September. Appraisal just got done yesterday. I am hoping it will close within 2 weeks. I went for their 1.99% HELOC loan.
Very similar to our experience with PenFed, which we started at the end of August. I have followed up with them maybe 10-12 times during the process. They have never contacted me directly, the entire time.

PenFed repeatedly told me that we could close within 1-2 weeks after the appraisal. This past week, ten days after our appraisal was done, I called the appraisal guy, and he said, "I submitted my full report two days after I saw your house. It was way above what you needed - I only contact people if the appraised value is lower than what they needed." So PenFed had sat on it for more than a week. I called PenFed, and they confirmed that they had received the report. They said they still need to review it, and order the title report (which they had never mentioned before as a timing item). It's now been 2 weeks since the appraisal, and no further word from them.

Basically, their slowness and non-responsiveness is not fun, but if we get a 1.99% HEL, and the only closing costs are $300 for the appraisal, then we will be happy. Two months, front to back, is not terrible. I think we will close soon, but if I did not follow up repeatedly, it would have taken a lot longer.

travellight
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Re: PenFed vs NFCU

Post by travellight » Sun Oct 14, 2012 3:43 pm

ditto, novalurker.... 1.99% for only 300$, heck, I would wait ten weeks, I'm in no rush. Just don't change the rate on me while I wait.

Batousai
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Re: PenFed vs NFCU

Post by Batousai » Mon Oct 15, 2012 11:10 am

Called PenFed today, was told there was a 2 week wait to get assigned a loan officer. Can't really say I'm surprised with the rates they're giving out. Well, hopefully I'll get a loan officer next week and then I can start to bug them directly. I'd like to close this ASAP as it's costing me roughly 100$ a week that it's open, lol.

Default User BR
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Re: PenFed vs NFCU

Post by Default User BR » Mon Oct 15, 2012 5:37 pm

I've been working on a HEL with PenFed since June. Today the rep who answered the phone (I've given up on my assigned one) said that everything looked in order and that she'd connect me to a closer. So close! Unfortunately I was on hold so long that lunch time ran out and I had to bail.


Brian

Batousai
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Re: PenFed vs NFCU

Post by Batousai » Tue Nov 13, 2012 2:20 pm

Update:

They aren't exactly quick, but it keeps chugging along. They have everything but the appraisal (suppose to be there by COB today, inspection was last tuesday so I believe them) and then it goes to under writing. Primary contact has been by e-mail and the guy has been fairly responsive. Hopefully I'll close in about 2 weeks if all goes well. Really no complaints so far.

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dm200
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Re: PenFed vs NFCU

Post by dm200 » Tue Nov 13, 2012 2:34 pm

stan1 wrote:One other advantage of NFCU (can't speak to PenFed) is that they don't sell their loans -- so you'll always be dealing with NFCU for service after the loan is made.
There needs to be a distinction between selling the loan (but keeping the servicing) and selling the loan AND the servicing of the loan. I believe Navy Federal sells most mortgage loans, but still retains the servicing of those loans. I do agree, though, that dealing with a lender that retains the servicing of the loan is a benefit.

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fishnskiguy
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Re: PenFed vs NFCU

Post by fishnskiguy » Tue Nov 13, 2012 2:45 pm

Since I have an NFCU 25 year customer decal on my car's rear bumper I'm probably biased.

Chris
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matjen
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Re: PenFed vs NFCU

Post by matjen » Tue Nov 13, 2012 2:59 pm

I refied to the PenFed 5/5 ARM and everything went smoothly and quickly. From first contact to close was about 2 months. :sharebeer
A man is rich in proportion to the number of things he can afford to let alone.

porcupine
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Re: PenFed vs NFCU

Post by porcupine » Tue Nov 13, 2012 3:24 pm

dm200 wrote:[...]I do agree, though, that dealing with a lender that retains the servicing of the loan is a benefit.
And what is that benefit (other than the loan mailing address, etc. does not change)?

- Porcupine

travellight
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Re: PenFed vs NFCU

Post by travellight » Tue Nov 13, 2012 3:49 pm

closing today on penfed; took about 2.5 months.

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dm200
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Re: PenFed vs NFCU

Post by dm200 » Tue Nov 13, 2012 3:56 pm

porcupine wrote:
dm200 wrote:[...]I do agree, though, that dealing with a lender that retains the servicing of the loan is a benefit.
And what is that benefit (other than the loan mailing address, etc. does not change)?

- Porcupine
With the same servicer over the life of the mortgage, I believe the chance for issues and problems with crediting the payment, and related are much lower. Also, when it is YOUR credit union, there is a real incentive to do things correctly and keep you happy. When servicing is sold, the servicer that buys the loan does not have as much incentive to keep you happy.

29palms
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Re: PenFed vs NFCU

Post by 29palms » Tue Nov 13, 2012 10:37 pm

All I can say is that I wish I had initially had a setup with NAVFED or PENFED for my mortgage. The deal wasn't there at the time, and I had other incentives at the time, but they sold around my mortgage for a long time before I refinanced with Washington Mutual, which in turn got bought out by CHASE in which I recently refinanced under excellent terms, but I wish I would have been under Navy Federal. Why? Trust. If my home wasn't under water right now, I would have definately gone with NavFed, but under HARP, I had to go with Chase, my current mortgage lender.

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Sbashore
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Re: PenFed vs NFCU

Post by Sbashore » Wed Nov 14, 2012 11:55 am

While I've heard mostly good things about NFCU, I'll never trust them with a mortgage application again. I almost lost a newly constructed home because they backed out of closing 48 hours before it was scheduled. The problem was a bad appraisal on the property. NFCU refused to work with me regarding a field review of the appraisal and refused to do anything to reconsider their position. They basically threw me under the bus and to add insult to injury refused to refund my application and appraisal fees. I scrambled and got new financing that closed in three weeks. Turned out that the first appraisal was just from an incompetent appraiser and my subsequent private appraisal, and the appraisal ordered by my lender were fine. So that was my experience with NFCU. Maybe it was just a fluke event, but I doubt I was the only one treated this way.
Steve | Semper Fi

29palms
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Re: PenFed vs NFCU

Post by 29palms » Wed Nov 14, 2012 12:43 pm

That's too bad. I had an experience with my mortgage lender Chase bank. Tried to get rid of my PMI mortgage, paid 100 bucks for the "Walk through", he came back with like in my neighborhood, home was worth 80,000 bucks. Which is about 20k more than what I paid for. How the bank came up with that figure, who knows? I have checked other sources like online with USAA, some calculator to see what your home was worth, and I got a figure of my worth as being more like 94k. Which is still under water but not as much as was implied. So guess what? Lost 100 bucks. No refunds. Still pay the PMI. Bank wins! That's too bad you had that experience with NFCU. I guess you're right. It depends on the experience at the time you deal with these people. I had a negative experience with Penfed over a car loan a few years back, but recently did get a car loan from them. Never knew exactly why, but I just went with NAVFED for the car loan whenever Penfed gave me some static that one time many years ago.

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