I hate PenFED (I am the only one)

[Aimster]

I applied for a mortgage application on PenFed online. $65 application fee, oK.

I get a call back the next day from the most clueless lender I have ever encountered.

She basically said "Your mom is on your loan application? uhhhhh we don't do that here. You should go for an FHA loan with your local bank"

Me: "Why can't my mom be on my loan? She is going to be on the title"

PenFED "yeah we don't do loans like that here at PenFED. Only you can be on the loan".

Wtf makes no sense to me at all. I go to bank of America and I lock in my rate at 3.875 5/1 ARM 1% discount points and 0 origination fee. Better than the 4.5% 5/5 ARM PenFED was offering.

Anyways they are sending me a letter demanding I pay the $65 application fee. Should I have to pay this? I mean nowhere on their website does it say "co-signers/co-borrowers are not accepted". I think the loan officer had no idea what she was talking about.
I told them to simply cancel the application the minute the lender said that my mother couldn't be on the loan.

.... also when I opened up my checking account with them to become a member they "kindly" sent me a letter stating any deposits made to the account have to stay in the account for 4 business days before I can touch it because of something on my credit report. Not stating what that something is but if I would like a copy of my report I could send them a letter.... yeah. Nothing is on my credit report except inquiries related to mortgage.

 

[Veramocor]

I rather have a fixed but if you are going to get a ARM PentFed has the best out there as it only adjusts once every 5 years. By year 7 you could be at 7.875 (adjusts 2% year 6 and year 7) on the BOA but would only be at 6.5 on the PentFed (adjusts once at 5 years). Dpeneds on how long you will live there and if you predict inflation or not.

 

[Sasiki]

Yeah.. fixed rate is the only thing I'd be looking at. If you are doing an ARM for long term, you can't afford the house you are looking at.

 

[alkemyst]

no offense but PenFed is more geared to those that are at the higher levels of credit.

At those levels you aren't usually having mom and dad cosign.

 

[alkemyst]

Originally posted by: Sasiki
Yeah.. fixed rate is the only thing I'd be looking at. If you are doing an ARM for long term, you can't afford the house you are looking at.

not necessarily true...but looking at rates now there isn't much room for them to be lower over the next 5 years vs going higher.

The ARMs that got the bad publicity are those that had teaser rates, were interest only and/or reverse amortization going on.

For a long time ARMs were the smart choice.

 

[Aimster]

Originally posted by: alkemyst
no offense but PenFed is more geared to those that are at the higher levels of credit.

At those levels you aren't usually having mom and dad cosign.

I agree, but what difference does it make to the lender? Both people are responsible for the payments. Just like a husband/wife.