*Payments shown do not include taxes or insurance, actual payments may be greater. Rates and offers are in effect as of March 21, 2017, for new applications only, for a limited time, and subject to change without notice. Example based on $500,000 loan. Other restrictions apply. Rate is variable and can increase by no more than --- percentage points every 15 years (--- for this example). Since the value of 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.
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.
For many homebuyers, lower monthly payments offer the opportunity to afford a bigger home. Adjustable rate mortgages like the 15/15 ARM Jumbo Loan typically offer a lower initial interest rate than other 30-year fixed rate loans. This lower interest rate results in lower monthly payments. The same house financed with a 15/15 ARM should result in lower monthly payments within the first 15 years than the same home financed with a 30 year jumbo fixed mortgage. If you are planning to move again within the next 15 years this might be the best product for you.
Once you know how much money you’re qualified to borrow, it’s worth it to look at the difference a 15/15 ARM Jumbo Loan could make. You could be able to afford a much bigger home. The jumbo part of the loan means that your total mortgage is for more than $424,100 (in most counties). This loan is typically used for larger, single-family homes.
As with any ARM, the rate will remain the same for the first period (15 years) and then adjust, unless you have paid off or refinanced the loan by the time the initial payment period ends. And as with any ARM, there is always the risk that interest rates will have gone up by the time the period ends. But with careful planning, you can afford a bigger home and still end up staying within your budget.
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 two percentage (2.000%) points, 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 two percent (2%). The maximum loan-to-value (LTV) 15/15 ARMs is 80% combined loan-to-value (CLTV) is 95%.
Investment properties not eligible for offers.
Jumbo Mortgages: For loan amounts above $424,100 to $2,000,000. 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%.
NOTE: A 1% origination fee applies to this loan. 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 email@example.com 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 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.
In a fixed mortgage, your monthly principal and interest payments remain the same for the life of the loan, usually 15 or 30 years. A 30-year mortgage will have lower monthly payments, but the 15-year allows you to repay the loan twice as fast, saving more than half the total interest costs.
If you plan to stay in your house for many years, a 30-year mortgage can help you afford a bigger or more expensive property and still have plenty of time to build up equity in it.
In an adjustable rate mortgage, your monthly principle and interest payments remain the same for only a certain number of years. If you don’t refinance prior to the end of the first payment term, the rate can go up or down based on the market.
If you plan to move or refinance before the term adjusts, an ARM can help you get a lower interest rate initially. It's important to take into account the housing market in your area and in general in order to decide if an ARM is a good choice for you.
A VA mortgage available only to veterans and members of the U.S. military. The loan is guaranteed by the Department of Veterans Affairs (VA) and requires a low or no down payment.
In order to qualify for a VA mortgage, you must get a Certificate of Eligibility from the government.
In an adjustable rate mortgage, your monthly principal and interest payments remain the same for only a certain number of years (usually 5 or 15). If you do not refinance prior to the end of the fixed rate, the rate can go up or down based on the market at the time.
If you plan to move or refinance before the term adjusts, an ARM can help you get a lower interest rate initially. It's important to take into account the housing market in your area and in general in order to decide if an ARM is a good choice for you: do you expect to easily be able to sell your home at a profit before the term adjusts.
A VA mortgage is available only to veterans and members of the U.S. military. The loan is guaranteed by the Department of Veterans Affairs (VA) and requires a low or no down payment.
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IRA Application Booklet
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Coverdell ESA Application
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