• 5/5 Home Equity Line of Credit

    KEY FEATURES

    OWNER OCCUPIED HOMES

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

    NON-OWNER OCCUPIED HOMES

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

    OPTIONS
    • 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.
    • The maximum Loan To Value for a condominium in all states is 70%.
    BENEFITS
    • 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
  • DISCLOSURES
     

    Closing Cost Credit: PenFed will pay most closing costs associated with a 5/5 ELOC loan 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. Other terms and conditions apply; call 1-800-970-7766 extension 6400 for details.

    See your tax advisor for details on tax deductibility of interest.

    Home Equity Lines of Credit are variable rate loans and the interest rate may increase after consummation of the loan.

    PenFed Mortgage Aggregate: If PenFed holds the 1st mortgage plus any equity loans or lines of credit on the same collateral and the new loan exceeds $750,000 maximum combined loan-to-value (CLTV) ratio is 75% for owner occupied and 70% for non-owner occupied properties.

    Multiple Loans: Multiple Equity loans and ELOCs are available as long as the member and collateral qualify (except Texas). For Equity loans and ELOCs the total 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 for sale/rent
    • 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)

    Property Insurance and Appraisals: Property insurance is required. A full appraisal is required for any loan greater than $250,000 and any loan amount with a loan-to-value (LTV) ratio over 80%. Should an appraisal be required, one will be ordered by PenFed at the member’s expense.

    Equity Line of Credit: Typical closing costs range from $250 to $750 depending on the loan amount and county where property resides. Rates depends on the owner occupancy and LTV. The maximum LTV for condominiums is 70% in all states. All other states maximum owner occupied LTV is 75% and non-owner occupied LTV is 70%. In Texas an ELOC amount may not exceed 50% of market value, regardless of equity available. Additional restrictions apply in Texas. Owner occupied properties are Prime Rate + 0%, with a minimum floor rate of 3.75% and a maximum rate of 18%. Non-owner occupied properties are Prime Rate + 1%, with a minimum floor rate of 4.75% and a maximum rate of 18%. ELOC minimum loan amount is $25,000 and maximum $400,000. 

    Other terms and conditions apply; call 1-800-970-7766, Extension 6400 for details.

    All rates and offers are as of July 2016 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.