• 15/15 Adjustable Rate Mortgage (ARM)


    15/15 Adjustable Rate Mortgage (ARM)

    Adjusts only once for the life of the loan

    Month Rate APR PAYMENT*
    First 180 --- --- ---
    Next 180 --- --- ---

    *Payments shown do not include taxes or insurance, actual payments may be greater. Rates and offers are in effect as of November 24, 2015, for new applications only, for a limited time, and subject to change without notice. Example based on $100,000 loan. Other restrictions apply. Rate is variable and can increase by no more than --- percentage points every 15 years (--- for this example). Since the index in the future is unknown, the First Adjustment Payments displayed are based on the current index plus margin (fully indexed rate) as of the date above.

    • For the first 15 year term the interest rate and payments are generally lower than those of a comparable 30 year fixed rate loan.
    • For home purchases or refinancing
    • Loan amounts up to $417,000
    • 1% origination fee
    • Primary Residence & Second Homes (Investment properties are not eligible)

    LTV over 60% generally requires a Loan Level Pricing Adjustment. LLPA varies dependent upon credit score.

    • Free 60-day rate lock1 
    • This mortgage can be eligible for the PenFed Real Estate Rewards Program, which can save up to $10,000 when buying a home. Use of a network real estate agent and preferred title provider required.
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    Save on Your Mortgage Over Time with a 15/15 ARM

    If you’re looking to save on your mortgage in the long run, a 15/15 ARM (adjustable rate mortgage) can be a smart option. This product is competitively priced with fixed rate loans and the rate will change only once after 15 years (the rate will go up or down depending on the market).

    As with any ARM, you need to be aware of the risks of the rate possibly going up by the time the initial payment period ends. Talking to a PenFed representative can help you determine if a 15/15 conforming ARM is right for you.


    All Adjustable 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.

    15/15 ARM: Available on purchases and refinances. 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 percent (1.000%) 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 (1.000%).

    Investment properties not eligible for offers. 

    Conforming Mortgages: For loan amounts from $25,000 to $417,000 (Loan amounts up to $625,500 are available in Guam, Alaska and Hawaii). The maximum loan–to–value (LTV) is 80% and 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%.

    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. The application of discount points will be determined by the LTV ratio.

    ¹For purchase applications, please submit a copy of your fully signed ratified purchase agreement to lockrate@penfed.org in a timely manner to ensure PenFed can meet your closing date.

    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 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 above disclosures apply to non-Veteran’s Administration (VA) loans. VA loans have different guidelines and eligibility requirements.

    All rates and offers are in effect as of November 2015, offered for a limited time and subject to change without notice. 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.