• 10-Year Balloon - Investment Property - Mortgage

    KEY FEATURES

    10-Year Balloon - Investment Property - Mortgage

    Rate Points APR
    4.375% 0.000 4.618%
    4.250% 1.000 4.629%
    Payment example of loan with 0.000 points

    The information provided assumes the purpose of the loan is to purchase a property, with a loan amount of $100,000 and an estimated property value of $143,000. The property is located in Alexandria, VA and is within Fairfax county. The property is an existing single family home and will be used as an investment property. The rate lock period is 60 days and the assumed credit score is 740.

    At a 4.375% interest rate, the APR for this loan type is 4.618%. The monthly payment schedule would be:

    • 119 payments of $499.29 at an interest rate of 4.375%
    • 1 payment of $80,266.69 at an interest rate of 4.375%

    If an escrow account is required or requested, the actual monthly payment will also include amounts for real estate taxes and homeowner's insurance premiums.

    ADDITIONAL RATE OPTIONS

    If you need additional cash to offset closing costs, or would like to obtain a lower rate with a buy down opportunity, please check rates to find the best scenario to meet your needs. PenFed offers Premium Pricing options not displayed and will work with you to create a customized mortgage solution.

    KEY FEATURES
    • For home purchases or refinancing
    • Loan amounts up to $424,100
    • 75% LTV CLTV for purchases and limited cashout loans
    • 70% LTV/CLTV for cashout loans
    • Offer available on investment properties only

    If you need additional cash to offset closing costs, or would like to obtain a lower rate with a buy down opportunity, please check rates to find the best scenario to meet your needs. PenFed offers Premium Pricing options not displayed and will work with you to create a customized mortgage solution.

    BENEFITS
    • Free 60-day rate lock* 
    Balloon Mortgages: The Mortgage for Investment Properties

    Balloon mortgages are a great mortgage option for investment properties! A Balloon Mortgage offers a fixed rate for a shorter period of time with smaller monthly payments. One large payment for the remaining balance is due at the end of the term.

    The lower initial payments of a 10 year balloon mortgage give you cash on hand to invest in the property or for other purposes. If you decide to keep the property at the end of the 10 year payment period, you may have the option to refinance the balloon payment to a longer term loan. You will have to qualify for the new loan at that time.

  • DISCLOSURES
     

    This is a 10 year fixed rate mortgage with a balloon payment at maturity. The loan is amortized over 30 years with the balance due and payable in full at the time of maturity. Loan matures in 10 years; you may apply to refinance the balloon payment at maturity. 

    Additional reserves may be required under the following circumstances for Investment Property:

    • 1-4 Financed Properties owned: 2 months PITIA on each financed property.
    • 5-10 Financed Properties: 6 months PITIA on each financed property.

    All Fixed Rate Mortgage Programs: The application of additional loan level pricing adjustments will be determined by various loan attributes to include but not limited to the loan-to-value (LTV) ratio, credit score, transaction type, property type, product type, occupancy, and subordinate financing.

    NOTE: A 1% origination fee applies to this loan. Points are the responsibility of the borrower and not covered in promotions.

    Conforming Mortgages: For loan amounts from $25,000 to $424,100 (Loan amounts up to $625,500 are available in Alaska and Hawaii). The maximum combined loan- to-value (CLTV) is 95%; 80% LTV and above are subject to private mortgage insurance (PMI). The maximum LTV and CLTV for condominiums is 80%.

    The applicant is responsible for the following fees and costs at the time of closing: Origination fee, appraisal fee, tax service fee, CLO access fee, title fees, transfer tax fees, credit report fee, flood cert fee, recording fee, survey if required and work verification fee, escrow reserves and interest due until first payment. Other costs may be included due to program specific circumstances. This is not intended to be an all-inclusive list.

    Escrows may be waived if LTV is 80% or less in all states.

    Additional reserve requirements may apply.

    If you withdraw an application and then reapply within 90 days from the date the application was withdrawn, the new application is subject to the previous application’s rate lock policy.

    All rates and offers are in effect as of March 2017, offered for a limited time and subject to change without notice. Restrictions apply to existing PenFed mortgage borrowers. Other restrictions may apply. Contact your PenFed mortgage consultant for any applicable additional restrictions and details about your loan. To receive any advertised product you must become a member of PenFed by opening a share (savings) account. Federally insured by the NCUA.

    We do business in accordance with the Federal Fair Housing Law and the Equal Credit Opportunity Act.