15/15 Adjustable Rate Mortgage (ARM)
 

Key Features

15/15 Adjustable Rate Mortgage 

  • Limited Time Special Offer! 
  • For Purchases & Refinances
  • Primary Residence & Second Homes (Investment properties are not eligible)
  • Loan amounts up to $2 Million
  • 1% origination fee

    Benefits

    • Free 60-day rate lock***

    Keep in Mind: Have these on-hand: previous two Federal Income Tax Returns, your W2, current pay stub, and banking statements when you apply.

    Not yet a PenFed member? Join now to apply.

    Details and Disclosures

    15/15 ARM: Limited time offer available on purchases and refinances up to $2 Million. Not available for applications without a property address (pre-purchase). The initial rate is fixed for 15 years (180 months). When the rate adjusts, your new rate will be the then current index (weekly average yield on US Treasury securities adjusted to a constant maturity of 10 years) plus a margin of one percentage (1.000%) point, rounding to the nearest one-eighth (0.125%). The new rate cannot exceed six percent (6.000%) above the initial rate or cannot be lower than the floor rate of one percent (1%).

     

    15/15 Adjustable Rate Mortgage (ARM) Closing Cost Promotion: Offer available for purchases and external refinances only. PenFed will pay your closing costs up to $10,000 including but not limited to: 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. This does not include: origination fee, escrow, interest, homeowner's insurance or owner's title insurance, the cost for a structural engineering or similar report, should the appraiser request one or points to buy a rate down or applied to a loan. Points are the responsibility of the borrower and not covered in promotions. Builder or seller credits may reduce the amount of the closing cost credits. This promotion is not available for investment properties. Other restrictions also apply. Contact your PenFed mortgage consultant for any applicable additional restrictions and details about your loan.You must use one of our preferred title companies to get the closing cost credits. For New York properties, borrowers are required to pay title insurance premiums and may use any title company to obtain the closing cost credit. Offer is only available for owner occupied primary residence and second homes. Refinance of an existing PenFed mortgage is not eligible for the closing cost credit and borrowers will be required to pay all closing costs. For Limited Cash Out refinances, limitations on the amount of cash back at closing may require that all or a portion of the credits be applied toward principle reduction. Note the reimbursement of closing costs below.

     

    Reimbursement of Closing Costs: If you pay this loan off and close the account earlier than the 36-month anniversary date of the loan closing, you will be obligated to pay PenFed a prorated amount of the closing cost credit received from PenFed. This amount will be added to any loan payoff amount requested prior to the 36 month anniversary date. The reimbursement amount will be prorated in equal amounts on a monthly basis. Closing costs credits to be reimbursed include all closing costs paid by PenFed except those paid to affiliated title companies. See contract addendum for details.

      

    15/15 ARM Mortgage Payment Example: 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 $125,000. 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 a primary residence. An escrow (impound) account is required. The rate lock period is 60 days and the assumed credit score is 740. At a 3.750% interest rate, the APR for this loan type is 3.807%, other rates and terms available. The monthly payment schedule would be $463.12 for the first 180 months at an interest rate of 3.750% and $459.17 for the next 180 months at an interest rate of 3.750%. Actual monthly payments will be higher and will also include amounts for real estate taxes and homeowner's insurance premiums. NOTE: A 1% origination fee applies to this loan. The origination fee may be waived by adding a 0.25% to the selected rate.The application of points will be determined by the loan to value (LTV) ratio. Points are the responsibility of the borrower and not covered in promotions.

     

    Investment properties not eligible for offers. 

     

    All Mortgage Programs: The application of points will be determined by the loan-to-value (LTV) ratio combined with certain representative credit scores. Points also apply to certain cash-out refinance transactions, certain condominium transactions, and some transactions with subordinate financing.
     
    Origination fees may apply to certain programs. The origination fee may be waived by adding a 0.25% to the selected rate.

     

    *** For a purchase transaction, the rate cannot be locked until PenFed has received a ratified sales contract executed by all required parties.
     
    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 cost may be included due to program specific circumstances. This is not intended to be an all-inclusive list.
     
    Escrows will only be waived if LTV is 80% or less in CA, OR, DC, VT & NY; 75% in all other states.
     
    Borrowers are required to have sufficient reserve assets available to cover 6 months full payments including principal, interest, homeowner’s insurance, property taxes and homeowner associated dues and/or mortgage insurance, if applicable.  For non-primary residences, we require 12 months of reserve assets.
     
    If a loan is withdrawn, the applicant may not reapply for at least 90 days from the date the application was withdrawn.

     
    Conforming Mortgages: For loan amounts from $25,000 to $417,000. 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%.
     
    Jumbo Mortgages: For loan amounts above $417,000 to $750,000.  The maximum loan-to-value (LTV) is 80% and the maximum combined loan-to-value (CLTV) is 90%. The maximum LTV and CLTV for condominiums is 80%.
     
    Super Jumbo Mortgages: For loan amounts above $750,000. 5/5 ARMs up to $4 million and Fixed Loans up to $2 million. The maximum loan-to-value (LTV) and combined loan-to-value (CLTV) is 80%. In DC, MD and VA only, the maximum LTV and CLTV for condominiums as a primary residence is 80%. The LTV and CLTV in all other states for condominiums is 75% The LTV and CLTV for second home condominiums is 70% in all states.
       
    All above disclosures apply to non-Veteran’s Administration (VA) loans. VA loans have different guidelines and eligibility requirements.
     

    All rates and offers are as of April 2014 and are subject to change without notice. Other restrictions may apply. Contact your PenFed mortgage consultant for any applicable additonal 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.