Here come the Freddie and Fannie bailouts...
- Thread starter theBigD_IHB
- Start date
NEW -> Contingent Buyer Assistance Program
rtlguru_IHB
New member
[quote author="Trooper" date=1220940234]Hey Ipo...do you know anyone that has actually used PenFed ? The rates are unbelievably good.
Quick question. One of the FAQ's is "Where will the closing take place". The answer is "you choose an attorney or settlement company of your choice". Does that mean I would have to find an escrow company ? Do CA lawyers do this ?
If anyone has any answer, please respond. If rates drop just a smidge bit more this week, I'll re-fi. Thanks!</blockquote>
Trooper, I refied with penfed earlier this year. They are a little slow, but no one came close to the rate and fees. I paid around $900 total for my 750K jumbo. I didn't have to find my own escrow company. Everything was taken care of by penfed.
Quick question. One of the FAQ's is "Where will the closing take place". The answer is "you choose an attorney or settlement company of your choice". Does that mean I would have to find an escrow company ? Do CA lawyers do this ?
If anyone has any answer, please respond. If rates drop just a smidge bit more this week, I'll re-fi. Thanks!</blockquote>
Trooper, I refied with penfed earlier this year. They are a little slow, but no one came close to the rate and fees. I paid around $900 total for my 750K jumbo. I didn't have to find my own escrow company. Everything was taken care of by penfed.
Trooper_IHB
New member
rtl, $900 for everything...title, appraisal, the works ? If so, that sounds good. Thanks very much for the vote of confidence in PenFed.
I checked them today but the rates haven't changed since yesterday.
How long did it take from the time you "joined" as a member, and were then able to take advantage of the mortgage refi ?
Did they keep your loan, or sell it ?
I checked them today but the rates haven't changed since yesterday.
How long did it take from the time you "joined" as a member, and were then able to take advantage of the mortgage refi ?
Did they keep your loan, or sell it ?
ipoplaya_IHB
New member
Troop,
Aimloan.com is quoting 5.625% with zero points on conforming 30-year with a $2K lenders fee right now. They dropped .25 point since yesterday... Looks like you can get 5.875 for $900 in total closing costs - title, appraisal, etc. Penfed is showing 5.75 with zero points so they are a smidge better still.
At 5.75 and $900 total out, looks like a refi would pay for itself in 2-3 years for you right?
Aimloan.com is quoting 5.625% with zero points on conforming 30-year with a $2K lenders fee right now. They dropped .25 point since yesterday... Looks like you can get 5.875 for $900 in total closing costs - title, appraisal, etc. Penfed is showing 5.75 with zero points so they are a smidge better still.
At 5.75 and $900 total out, looks like a refi would pay for itself in 2-3 years for you right?
rtlguru_IHB
New member
[quote author="Trooper" date=1220999373]rtl, $900 for everything...title, appraisal, the works ? If so, that sounds good. Thanks very much for the vote of confidence in PenFed.
I checked them today but the rates haven't changed since yesterday.
How long did it take from the time you "joined" as a member, and were then able to take advantage of the mortgage refi ?
Did they keep your loan, or sell it ?</blockquote>
Yeah, $900 total. About 600 was title, the rest were the appraisal and misc fees. No hidden costs or tricks. I'm 100% satisfied with them. You can basically refinance the day you pay your $20 membership and get your membership number.
If you want to read more on people's experiences, go here:
http://www.fatwallet.com/forums/finance/762736/
it's a huge thread on discussion and experiences people have had with penfed. Should answer all questions you have. Good luck!
I checked them today but the rates haven't changed since yesterday.
How long did it take from the time you "joined" as a member, and were then able to take advantage of the mortgage refi ?
Did they keep your loan, or sell it ?</blockquote>
Yeah, $900 total. About 600 was title, the rest were the appraisal and misc fees. No hidden costs or tricks. I'm 100% satisfied with them. You can basically refinance the day you pay your $20 membership and get your membership number.
If you want to read more on people's experiences, go here:
http://www.fatwallet.com/forums/finance/762736/
it's a huge thread on discussion and experiences people have had with penfed. Should answer all questions you have. Good luck!
zovall_IHB
New member
[quote author="Trooper" date=1220940234]Hey Ipo...do you know anyone that has actually used PenFed ? The rates are unbelievably good.
Quick question. One of the FAQ's is "Where will the closing take place". The answer is "you choose an attorney or settlement company of your choice". Does that mean I would have to find an escrow company ? Do CA lawyers do this ?
If anyone has any answer, please respond. If rates drop just a smidge bit more this week, I'll re-fi. Thanks!</blockquote>
I've used Penfed and they have been great. They might be slow to get things going if they have been flooded with loan apps but they honor the rate that you lock when you apply. They also waive many of the fees if it is a new loan (but not if you refinance an existing Penfed loan).
I didn't have to choose an escrow company (they took care of it) and sent a notary to my home to do all the paperwork.
Rates are currently 5.75% for a 30 year fixed with 0 points. I can't find anything better than that right now.
Quick question. One of the FAQ's is "Where will the closing take place". The answer is "you choose an attorney or settlement company of your choice". Does that mean I would have to find an escrow company ? Do CA lawyers do this ?
If anyone has any answer, please respond. If rates drop just a smidge bit more this week, I'll re-fi. Thanks!</blockquote>
I've used Penfed and they have been great. They might be slow to get things going if they have been flooded with loan apps but they honor the rate that you lock when you apply. They also waive many of the fees if it is a new loan (but not if you refinance an existing Penfed loan).
I didn't have to choose an escrow company (they took care of it) and sent a notary to my home to do all the paperwork.
Rates are currently 5.75% for a 30 year fixed with 0 points. I can't find anything better than that right now.
ConsiderAgain_IHB
New member
Back on the bailouts,
The Dow closed today within 10 pts of where it closed Friday, before the bailouts. For the number junkies, the Dow swung a cumulative 862 pts (7.7%) in the last two days based on the highs and closing. Why the pop in the market Monday?
The fed?s action does a couple of things. It provides liquidity to the mortgage market. The crisis facing FNM/FRE was investors were not buying their securities because of default worries. FNM/FRE did not have the reserves to cover the default loses prior to the bailout. That was forcing FNM/FRE to pay higher interest rates which were passed onto us as higher mortgage rates. The fed?s move alleviated that concern somewhat by backing FNM/FRE with government cash (our tax money) and that?s why interest rates have fallen in the past two days. So, that?s good for us today when we go for a mortgage.
Fannie and Feddie are basically penny stocks now, worthless maybe. I don?t know how to value them right now.
Now to the point, the real problem was/is in the loans <em>already made</em>. The fed?s action props up FNM/FRE as the loans made over the past few years continue to default and accumulate. The losses are still there, in the billions, and now you and I and everyone has to pay for it. Sure interest rates are lower now, but housing prices are still inflated and there are lots of defaults coming. How the hell is that good for the market?
I am not in finance per say, so help me understand what the market thought was so good Monday. I see the net effect of the bailouts as a negative in that it has no real effect on current conditions except pseudo-capping mortgage rates, and a real negative effect in passing private mortgage losses onto the public.
The Dow closed today within 10 pts of where it closed Friday, before the bailouts. For the number junkies, the Dow swung a cumulative 862 pts (7.7%) in the last two days based on the highs and closing. Why the pop in the market Monday?
The fed?s action does a couple of things. It provides liquidity to the mortgage market. The crisis facing FNM/FRE was investors were not buying their securities because of default worries. FNM/FRE did not have the reserves to cover the default loses prior to the bailout. That was forcing FNM/FRE to pay higher interest rates which were passed onto us as higher mortgage rates. The fed?s move alleviated that concern somewhat by backing FNM/FRE with government cash (our tax money) and that?s why interest rates have fallen in the past two days. So, that?s good for us today when we go for a mortgage.
Fannie and Feddie are basically penny stocks now, worthless maybe. I don?t know how to value them right now.
Now to the point, the real problem was/is in the loans <em>already made</em>. The fed?s action props up FNM/FRE as the loans made over the past few years continue to default and accumulate. The losses are still there, in the billions, and now you and I and everyone has to pay for it. Sure interest rates are lower now, but housing prices are still inflated and there are lots of defaults coming. How the hell is that good for the market?
I am not in finance per say, so help me understand what the market thought was so good Monday. I see the net effect of the bailouts as a negative in that it has no real effect on current conditions except pseudo-capping mortgage rates, and a real negative effect in passing private mortgage losses onto the public.