• 15/15 Adjustable Rate Jumbo Mortgage (ARM)


    15/15 Adjustable Rate Jumbo Mortgage (ARM)

    Adjusts only once for the life of the loan

    Month Rate APR PAYMENT*
    First 180 3.500 3.440 2,245.22
    Next 180 2.625 3.440 2,112.71

    *Payments shown do not include taxes or insurance, actual payments may be greater. Rates and offers are in effect as of September 27, 2016, 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.

    • Jumbo loans are available for loans greater than $417,000 up to $2 million
    • 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
    • Available for loans greater than $417,000 up to $2 million
    • 1% origination fee
    • Primary Residence & Second Homes (Investment properties are not eligible)
    • Free 60-day rate lock1 
    • This mortgage can be eligible for the PenFed Real Estate Rewards Program. When you use a network real estate agents and our preferred title providers to buy your next home using certain types of mortgages, you could save up to $10,000 in closing costs or thousands of dollars on origination fees.
    The 15/15 ARM Jumbo Loan: You May Be Able to Afford a Bigger Home

    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 $417,000 (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 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%). 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 $417,000 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. 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 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 October 1, 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.