• 10-Year Balloon - Investment Property - Mortgage

    KEY FEATURES

    10-Year Balloon - Investment Property - Mortgage

    Rate Points APR
    3.500% 1.000 3.870%
    3.375% 1.750 3.845%
    3.250% 2.375 3.803%
    Payment example of loan with 1.000 points
    KEY FEATURES
    • For home purchases or refinancing
    • Loan amounts up to $417,000
    • 75% LTV/ 70% LTV MI & FL
    • 1% origination fee
    • Offer available on investment properties only
    BENEFITS
    • Free 60-day rate lock* 

    LTV over 70% requires a .5% Loan Level Pricing Adjustment.

    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. The origination fee may be waived by adding 0.250% to the selected rate. Points are the responsibility of the borrower and not covered in promotions.

    Conforming Mortgages: For loan amounts from $25,000 to $417,000 (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 September 2016, 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.