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URL:  http://boards.fool.com/penfed-30392583.aspx

Subject:  PenFed Date:  11/20/2012  8:38 PM
Author:  richinaz Number:  124433 of 127459

I was looking at PenFed rates and saw a 5yr adjustable mortgage at 2.75% for the first 5 years then adjustable by 2% a year.

They mention "No Origination Fee – No Points" but I'm assuming there must be other fees such as a home appraisal. Are there any good ways to estimate how much they generally run?

On a side note how do they advertise a 2.75% rate but an APR of 2.67%? Its been a while since I looked at the math of interest rates but I had always assumed the APR would be no lower than the interest rate. Are they including some kind of reimbursements?

I'm torn between the safety of a fixed rate versus a lower adjustable rate. Mine is currently 3.99%, 30 yrs that I got a year ago. I really don't want to stay in this area (MD) long term but that will depend on jobs.

I'll probably just let things go for a while and figure out the job thing first since I doubt the rates will go up for a while but lowering my payments by $200+ per month is tempting.

Thanks
Rich
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