• 5/5 Adjustable Rate Mortgage (ARM)


    5/5 Adjustable Rate Mortgage (ARM)


    Month Rate APR PAYMENT*
    First 60 3.000% 3.515% $843.21
    Next 300 3.750% 3.515% $914.19

    *Payments shown do not include taxes or insurance, actual payments may be greater. Rates and offers are in effect as of June 9, 2017, offered for a limited time and subject to change without notice. Example based on $200,000 loan. Other restrictions apply. Rate is variable and can increase by no more than 2 percentage points after the initial five year period and at each subsequent annual rate adjustment, with a lifetime maximum adjustment of ---% (--- 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.

    • For home purchases or refinancing
    • Loan amounts up to $424,100
    • No origination fee!
    • Offers not available on investment properties
    • See below for loan to value and combined loan to value limits for conforming mortgages and condos
    • 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.

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

    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.

    Company Transfers: The Right Mortgage for People on the Move

    If you or your spouse works for a company that often transfers employees to different locations, a 5/5 ARM (adjustable rate mortgage) Conforming Loan can help you enjoy lower monthly payments while suiting your need for mobility.

    ARMs usually have lower interest rates to start than fixed mortgages. That translates into lower monthly payments. However, the rate will adjust, in the case of the 5/5 ARM Conforming Loan, at the 6-year mark and every 5 years thereafter. If you think you may have to move before that date, 5/5 ARM Conforming Loan may be a great option for you.

    As with any ARM, the risk with a 5/5 ARM is that rate will go up in the 6th year. However, if you’re positive your company will transfer you before that date, you can pay less or get a bigger house and then sell prior to the rate change. Talking to a PenFed representative can help you determine if a 5/5 ARM Conforming Loan 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.

    5/5 ARMs: Offers available for purchases and refinances. The initial rate can change by no more than 2 percentage points after the initial five year period and at each subsequent annual rate adjustment, never to exceed 5 percentage points above the initial rate. When the rate adjusts, your new rate will be the then current index plus margin, which is currently set at 2.000% for the new products, as long as it does not exceed the 2% adjustment cap.

    Investment properties not eligible for offer. 

    Conforming Mortgages: For loan amounts from $25,000 to $424,100 (Loan amounts up to $625,500 are available in Guam, 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%.

    NOTE: 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. 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 if required, 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 June 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.