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Old 08-19-2008, 02:53 PM
 
792 posts, read 3,825,048 times
Reputation: 650

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Hi,

I am currently shopping for a home loan. I would like to know which lender has loan programs?
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Old 08-19-2008, 03:50 PM
 
132 posts, read 523,297 times
Reputation: 54
Penfed
They offer 5.75 on a 5/5 year ARM and no closing cost

If you plan to sell/refinance within 5 years its a great deal.
They are a GREAT company but they act slow due to the huge volume of loan application.

https://www.penfed.org/promo/2008Offers/index.asp

Quote:


How It Works

  • Adjustable Rate Mortgage with a low rate that only adjusts every 5 years for 30 years
  • Rate would adjust up to 2% or our prevailing rate, whichever is the lowest
  • Maximum lifetime adjustment that will not exceed 5% above the initial rate
If you can find a better deal, TAKE IT!
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Old 08-19-2008, 05:11 PM
 
Location: Houston, TX (Oak Forest)
4,516 posts, read 11,311,550 times
Reputation: 3607
Taking a 5 year ARM would be a terrible idea.

Compare Mortgage Rates | CD Rates | Credit Cards Home Equity Loans Mortgages Best Rate Calculator Bankrate.com

Get a 30 year fixed loan.
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Old 08-19-2008, 05:44 PM
 
Location: Houston
1,458 posts, read 4,915,467 times
Reputation: 422
NO ARM's.
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Old 08-19-2008, 05:51 PM
 
67 posts, read 235,760 times
Reputation: 42
NO ARMS! That's why the housing market is in the mess it's in. People need come to grips that houses are long term investments.
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Old 08-19-2008, 06:28 PM
 
Location: Spring, Texas
406 posts, read 1,490,707 times
Reputation: 161
[quote=surfs1st;4921531]NO ARMS! That's why the housing market is in the mess it's in. People need come to grips that houses are long term investments.[/quote


My votes a 15yr. fixed....Sunny
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Old 08-19-2008, 06:41 PM
 
938 posts, read 2,108,972 times
Reputation: 791
Arms are not a bad idea if you use them correctly.
I have a arm that is fixed for 7 years at 5.125% before adjusting.

I am only going to live in the house for 4 or 5 years max so why not save a few hundred a year in interest.

If used correctly Arms are perfectly fine, just not a way to afford a home.
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Old 08-19-2008, 07:17 PM
 
Location: Houston, TX (Oak Forest)
4,516 posts, read 11,311,550 times
Reputation: 3607
I knew a girl who got a 5 year ARM because she planned to move in 4 years. Its been 8 years now and she still lives there. Luckily she was able to refinance before the credit crunch but moral of the story: you never know so why risk it.
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Old 08-20-2008, 01:53 AM
 
Location: Conroe, TX
684 posts, read 1,863,126 times
Reputation: 193
Quote:
Originally Posted by chris_ut View Post
I knew a girl who got a 5 year ARM because she planned to move in 4 years. Its been 8 years now and she still lives there. Luckily she was able to refinance before the credit crunch but moral of the story: you never know so why risk it.
I agree with chris_ut and others, MaryKate1...based on everyone's current dilemma with ARM's (the Crux of the "mortgage meltdown" we are now experiencing)

Do not, do not, do an ARM...ESPECIALLY in these immediate economic times!!
The coals from the not so distant past are not only still smoldering, some are still in 2009 preparing to re-ignite!!

I will once again, repeat what I have ALWAYS believed...if you cannot afford the home at a 30 yr FIXED rate, you are trying to buy too much house!! It is really okay to crawl before you walk! That is what most folks, who plan to secure their futures, do...baby steps, marykate1, baby steps....all good things come to those who (plan) and wait....

If you do not heed everyone's advise..

1) you could have done all this research, as I know you have, for nothing...and put yourselves in the slippery slope of losing everything in a foreclosure when the ARM adjusts...that would suck for you...

2) you could be a member of the "fiscally learning impaired--it won't happen to me" group of the present time, that will inevitably, by not learning from current events, procure the second wave, and without a doubt the most devastating blow to the nation's economy ( then you COULD say DEPRESSION!) ...and that would suck for all of us...

I think I have made my point?????
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Old 08-20-2008, 07:53 AM
 
132 posts, read 523,297 times
Reputation: 54
Exactly! ARM is for people who know what they are doing...Not for someone who believes he is getting 'good deal' from the rip-off artists out there...

Like credit cards..If you are not responsible then thats not the thing for you.

ARM is the reason for current RE bust ??? oh..I see, that accident was caused by the VEHICLE not by the DUI driver behind the wheels...


I would have considered this Pennfed ARM if my plan is to sell in 5 years. But we are looking at 6 years.

Quote:
Originally Posted by predatorprey View Post
Arms are not a bad idea if you use them correctly.
I have a arm that is fixed for 7 years at 5.125% before adjusting.

I am only going to live in the house for 4 or 5 years max so why not save a few hundred a year in interest.

If used correctly Arms are perfectly fine, just not a way to afford a home.
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