• 5/5 Home Equity Line of Credit



    Loan to Value (LTV) Line Amount & Term APR 1 
    75% OR LESS LTV $25,000 - $400,000
    Up to 180 Months
    Variable 3.750% APR

    1Rate adjusts once every 5 years. There is a minimum rate floor of 3.75% APR and a maximum rate of 18% APR.


    Loan to Value (LTV) Line Amount & Term APR2 
    70% OR LESS LTV $25,000 - $400,000
    Up to 144 Months
    Variable 4.750% APR

    1Rate adjusts once every 5 years. There is a minimum rate floor of 4.75% APR and a maximum rate of 18% APR.

    • Loans from $25,000 - $400,000
    • The maximum Loan To Value for an Owner Occupied Home is 75% or less.
    • The maximum Loan To Value for an Non-Owner Occupied Home is 70% or less.
    • Closing cost credits
    • Available funds when you need them
    • Variable rate changes once every 5 years
    • Perfect for college or other recurring expenses
    • Only pay on the funds that you use

    Closing Cost Credit: PenFed will pay most closing costs associated with an equity line of credit (ELOC) which includes: credit report, flood certification, settlement/closing, property ownership and encumbrances search, recording, city/county taxes, state taxes, property search and quick close. If an appraisal is required, the cost will be paid by the member, who is responsible for the fee whether or not the loan closes. The member is responsible for notary fees. Should this loan be paid off or closed within 36 months from the anniversary date of the loan closing, the member will be obligated to pay PenFed the full amount of the total closing cost for the loan.

    Interest may be tax deductible, consult a tax advisor for further information regarding the tax deductibility of interest and charges.

    Home equity lines of credit (ELOC) are variable rate loans and the interest rate is subject to increase after consummation of the loan.

    Appraisals: An appraisal is required for all applications with a CLTV over 80%. For applications with a CLTV of 80% or less, PenFed will attempt to establish value via an independent method. If that method is unsuccessful, an appraisal will be required regardless of CLTV. An appraisal is required in the following circumstances:

    • For any loan amount if the loan to value ratio (CLTV) is greater than 80%; or
    • For all equity loans with a loan amount greater than $250,000.

    If an appraisal is required it must be ordered by PenFed. You will be contacted for authorization and payment prior to ordering. Appraisal fees average $350 to $525 (some run higher).

    Property Insurance: Property insurance is required.

    PenFed Mortgage Aggregate: If the total combined PenFed indebtedness for real estate loans against the collateral property exceeds $750,000 then the maximum CLTV is 80%. This total indebtedness includes a PenFed 1st mortgage, the new requested loan amount and any outstanding PenFed equity loan products.

    Multiple Loans: Multiple equity loans and ELOCs are available as long as the member and collateral qualify (except Texas). The total PenFed indebtedness cannot exceed $400,000 for all equity and ELOCs combined.

    PenFed does not lend on: 

    • Mobile homes
    • Co-ops or time-shares
    • Properties that are currently listed on the market for sale
    • Commercial property or property used for commercial purposes, even if a residence is part of the property
    • Undeveloped property (land only)
    • Properties with more than 4 units.

    Properties that are currently under major construction/renovations: Property must be fully livable, with no safety issues. (Examples: no missing rails from stairs/decks, no open walls with wires showing, missing kitchen appliances/counters, missing bath fixtures or unfinished pool).

    5/5 Home Equity Line of Credit:  

    • In all states, the maximum CLTV available is 75% on owner occupied properties and 70% on non-owner occupied properties.
    • In Texas an ELOC amount may not exceed 50% of market value, regardless of equity available. Additional restrictions apply in Texas, so please ask a representative for details.
    • The maximum CLTV for condominiums is 80% in all states.
    • Rates vary depending on owner occupancy and CLTV.

    Other terms and conditions apply; call 1-800-970-7766, extension 6400 to speak with a representative for details. All rates and offers are as of June 2017 and subject to change without notice. To receive advertised product you must become a member of PenFed by opening a share (savings) account.

    We do business in accordance with the Federal Fair Housing Law and the Equal Credit Opportunity Act.