*Payments shown do not include taxes or insurance, actual payments may be greater. Rates and offers are in effect as of January 11, 2017, offered for a limited time and subject to change without notice. Example based on $400,000 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.
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.
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 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. 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 January 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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Prudential PenFed Realty is a wholly owned subsidiary of PenFed.
If you are ready to open a new IRA account, please print, complete, and return the IRA application:
IRA Application Booklet
If you have a PenFed IRA and would like to open an IRA certificate, please call a member service representative at 1-800-247-5626.
If you are ready to open a new Coverdell Education Savings Account (ESA), please print, complete, and return the following application:
Coverdell ESA Application
If you have a Coverdell ESA with PenFed and would like to open an ESA Certificate, please call a member service representative at 1-800-247-5626.
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