Pentagon Federal Credit Union(PenFed)

admin — Tue, 24 Jan 2012 01:35:41 +0000

PenFed or Pentagon Federal Credit Union is currently offering an exceptional deal on home mortgages and the good news is you don’t have to work at the Pentagon or even be a member of the military to join PenFed and have access to their great mortgages. The most popular is the 5/5 ARM. Now before you quit reading because your fear of an ARM mortgage, consider this. Currently the rate is somewhere around 3% so let’s say that you refinance with PenFed at the 3% rate. You’re locked in at that rate for the next five years. What is the likelihood that you will move or refinance in the next five years? If you’re like most Americans it is probably pretty high so the first adjustment period probably won’t affect you. Let’s say that you do stay in your home for more than five years. The maximum your rate can adjust up or down is 2% so the highest your rate could go up would be a jump from 3% to 5%. If your rate did increase up to 5% you’re locked in for another five years. If you look at the historical numbers the likelihood of you staying in your home for ten years is very unlikely and even if you did you’re paying 3% interest for the first five years then 5% for the last five and that’s worst case scenario.
So what is your payment going to look like? Well if you’re loan amount is $400,000 you’re looking at a principal and interest payment of $1,686.42 for the first five years and $2147.29 for the next five. The average 30 year fixed mortgage is going to run you around 4% with a monthly principal and interest payment of $1909.66. After reviewing those numbers you might still be leaning on the 30 year fixed because the word “fixed” sounds safe but here’s the kicker. Your closing costs on the standard 30 year fixed mortgage are going to run you somewhere between $12,000 and $16,000 for that size of a loan but he PenFed closing costs are going to run you $0. That’s correct there are no closing costs associated with the PenFed 5/5 mortgage because they pick up the tab for up to $100,000 in closing costs. Why? Probably because PenFed is a not-for-profit credit union owned by its members, either way it is a great deal that will expire before long. The only fee that you would pay is for title insurance and that’s only if you close with someone who is not a PenFed preferred title company. The PenFed 5/5 ARM mortgage is in high demand so be prepared to wait 60 to 90 days before you’ll be able to close but I think it’s well worth the wait. If you know for a fact that you won’t be selling your home for a very long time then maybe this isn’t the right loan for you but for the majority of those out there the PenFed 5/5 ARM can save you several thousands in both interest and in fees.

I find that this loan is great for those who are moving to an area for a short amount of time, say for work purposes, and they know that they’ll be moving after only a few years or for first time home buying couples who have the 20% to put down but know that their family will be growing and they’ll soon have to upgrade to a larger home in a few years.

Community Loan Center

admin — Fri, 18 Nov 2011 14:23:44 +0000

The world of lending has changed more in the last three of years more than it’s probably changed in the last thirty. The ongoing world financial crisis has forced lenders and banks to change the way they do business and therefore change the way they lend. Along with changes in legislation and government oversight this has made borrowing a more complicated and stringent process for the average borrower. Dealing with this new complicated world can be tough but that’s were communityloancenter.com comes in to sort out the nonsense and bring some clarity to these every changing times.

No area of borrowing has changed more than home loans. Sub-prime home loans were a major cause of many of the changes that we see today. The good news is that many programs have survived these changes such as FHA and VA home loans. The second piece of good news for any homebuyer is that home prices continue to be depressed and home loan rates continue to hit all-time record lows.

Business loans, especially small business loans have also gone thru a major transformation. Once again there is good news, every day we’re seeing more talk and pressure on lenders to open up and make more small business loans available to the little guys to reignite the U.S. Economy. Politicians and lenders both have begun to realize that the best way to spur the economy and curb unemployment is to provide the small business loans that entrepreneurs need to keep there cash flow needs met, grow their businesses and add those workers to their payrolls.

Car loans on the other hand have become abundant with car companies fighting for buyers and willing to offer great deals for a dwindling pool of car buyers. The complication here lies in sorting thru the mess and finding the best possible deal out there. Banks, credit unions and car companies are offering exceptional deals on car loan rates for both new and used vehicles.

Student loans have seen their share of changes. Most of these have to do with how and when interest is accrued and when and how the loan is paid back. These new rule changes can effect whether you decide to go back for that MBA or that masters degree that you might have been putting off. If student loans are your only option communityloancenter.com will help you understand these changes.

Personal loans were once based on a handshake and a personal relationship with your local banker. These days they seem to be becoming more and more rare but they do still exist and communityloancenter.com will point you in the right direction and show you what is available.

Payday loans have almost become a bad word these days and for good reason. Hidden fees and outrageous interest rates have caused many desperate borrowers to be pushed farther into financial peril. Here at communityloancenter.com we’ll show you what to look for and what to avoid if a payday loans are your only hope.