What about this loan?

[Ricechex]

https://www.penfed.org/productsAndRates/mortgages/firstMortgageLoans55ARM.asp

If it adjusts up 2% in 5 years, then that is 7.625%. Is there something sneaky in here I might be missing?

[temeculaguy]

Better have HLS or one of the loan people give their expert opinion. My layman’s opinion is that for 5.62% to start as an adjustable you might as well not kiss your sister and just go fixed, that’s almost what the current rate is. Things that are too good to be true usually are, but since this isn’t that good, it’s propbably legit.

Even if you plan to have the loan for less than 5 years, you may end up with it for longer and in ten years you could be paying 9.62% for the ability to shave an 1/8 or two right now. That’s why they call it gambling.

[NeetaT]

Stop looking at anything other than fixed rate, now!!!!!

[Ricechex]

Oh, I was just looking. I am NOT buying anything, just check to see what is out there. I didn’t realize it could go as high as HLS said…

[Ricechex]

Oh, I was just looking. I am NOT buying anything, just check to see what is out there. I didn’t realize it could go as high as HLS said…

[Ricechex]

Oh, I was just looking. I am NOT buying anything, just check to see what is out there. I didn’t realize it could go as high as HLS said…

[Ricechex]

Oh, I was just looking. I am NOT buying anything, just check to see what is out there. I didn’t realize it could go as high as HLS said…

[Ricechex]

Oh, I was just looking. I am NOT buying anything, just check to see what is out there. I didn’t realize it could go as high as HLS said…

[NeetaT]

Stop looking at anything other than fixed rate, now!!!!!

[NeetaT]

Stop looking at anything other than fixed rate, now!!!!!

[NeetaT]

Stop looking at anything other than fixed rate, now!!!!!

[NeetaT]

Stop looking at anything other than fixed rate, now!!!!!

[cantab]

Pentagon Federal often has very good rates. This particular loan is strange because the APR is much lower than the start rate: 4.384 versus 5.625. Later on the page it says APR 5.377. I would want to understand the reasons for these discrepancies. The 5% lifetime cap on the interest rate increase is reasonable for an ARM.

My limited experience is that Penfed has awful customer service. For better service and good local rates, see http://www.plcu.com/rates_db/interest_rates.asp. In my opinion their 1/1 ARM is an especially good deal, if you’re willing to take some risk. The start rate is 4.375% for one year, then it can adjust by maximum 1% per year, and it also has a lifetime maximum change of 5%, i.e. maximum ever is 9.375%.

[cantab]

Pentagon Federal often has very good rates. This particular loan is strange because the APR is much lower than the start rate: 4.384 versus 5.625. Later on the page it says APR 5.377. I would want to understand the reasons for these discrepancies. The 5% lifetime cap on the interest rate increase is reasonable for an ARM.

My limited experience is that Penfed has awful customer service. For better service and good local rates, see http://www.plcu.com/rates_db/interest_rates.asp. In my opinion their 1/1 ARM is an especially good deal, if you’re willing to take some risk. The start rate is 4.375% for one year, then it can adjust by maximum 1% per year, and it also has a lifetime maximum change of 5%, i.e. maximum ever is 9.375%.

[cantab]

Pentagon Federal often has very good rates. This particular loan is strange because the APR is much lower than the start rate: 4.384 versus 5.625. Later on the page it says APR 5.377. I would want to understand the reasons for these discrepancies. The 5% lifetime cap on the interest rate increase is reasonable for an ARM.

My limited experience is that Penfed has awful customer service. For better service and good local rates, see http://www.plcu.com/rates_db/interest_rates.asp. In my opinion their 1/1 ARM is an especially good deal, if you’re willing to take some risk. The start rate is 4.375% for one year, then it can adjust by maximum 1% per year, and it also has a lifetime maximum change of 5%, i.e. maximum ever is 9.375%.

[cantab]

Pentagon Federal often has very good rates. This particular loan is strange because the APR is much lower than the start rate: 4.384 versus 5.625. Later on the page it says APR 5.377. I would want to understand the reasons for these discrepancies. The 5% lifetime cap on the interest rate increase is reasonable for an ARM.

My limited experience is that Penfed has awful customer service. For better service and good local rates, see http://www.plcu.com/rates_db/interest_rates.asp. In my opinion their 1/1 ARM is an especially good deal, if you’re willing to take some risk. The start rate is 4.375% for one year, then it can adjust by maximum 1% per year, and it also has a lifetime maximum change of 5%, i.e. maximum ever is 9.375%.

[cantab]

Pentagon Federal often has very good rates. This particular loan is strange because the APR is much lower than the start rate: 4.384 versus 5.625. Later on the page it says APR 5.377. I would want to understand the reasons for these discrepancies. The 5% lifetime cap on the interest rate increase is reasonable for an ARM.

My limited experience is that Penfed has awful customer service. For better service and good local rates, see http://www.plcu.com/rates_db/interest_rates.asp. In my opinion their 1/1 ARM is an especially good deal, if you’re willing to take some risk. The start rate is 4.375% for one year, then it can adjust by maximum 1% per year, and it also has a lifetime maximum change of 5%, i.e. maximum ever is 9.375%.

[temeculaguy]

Better have HLS or one of the loan people give their expert opinion. My layman’s opinion is that for 5.62% to start as an adjustable you might as well not kiss your sister and just go fixed, that’s almost what the current rate is. Things that are too good to be true usually are, but since this isn’t that good, it’s propbably legit.

Even if you plan to have the loan for less than 5 years, you may end up with it for longer and in ten years you could be paying 9.62% for the ability to shave an 1/8 or two right now. That’s why they call it gambling.

[temeculaguy]

Better have HLS or one of the loan people give their expert opinion. My layman’s opinion is that for 5.62% to start as an adjustable you might as well not kiss your sister and just go fixed, that’s almost what the current rate is. Things that are too good to be true usually are, but since this isn’t that good, it’s propbably legit.

Even if you plan to have the loan for less than 5 years, you may end up with it for longer and in ten years you could be paying 9.62% for the ability to shave an 1/8 or two right now. That’s why they call it gambling.

[temeculaguy]

Better have HLS or one of the loan people give their expert opinion. My layman’s opinion is that for 5.62% to start as an adjustable you might as well not kiss your sister and just go fixed, that’s almost what the current rate is. Things that are too good to be true usually are, but since this isn’t that good, it’s propbably legit.

Even if you plan to have the loan for less than 5 years, you may end up with it for longer and in ten years you could be paying 9.62% for the ability to shave an 1/8 or two right now. That’s why they call it gambling.

[temeculaguy]

Better have HLS or one of the loan people give their expert opinion. My layman’s opinion is that for 5.62% to start as an adjustable you might as well not kiss your sister and just go fixed, that’s almost what the current rate is. Things that are too good to be true usually are, but since this isn’t that good, it’s propbably legit.

Even if you plan to have the loan for less than 5 years, you may end up with it for longer and in ten years you could be paying 9.62% for the ability to shave an 1/8 or two right now. That’s why they call it gambling.

[Author]

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