5/5 Adjustable Rate Mortgage (ARM)

Key Features

5/5 Adjustable Rate Mortgage

Adjusts only once every 5 years

First 60 2.875% 3.372%$1,659.57 
Next 300 3.625%  3.372%$1,800.13 

*Payments shown do not include taxes or insurance, actual payments may be greater. Rates and offers are in effect as of August 25, 2015, for new applications only, 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 every 5 years with a lifetime maximum adjustment of 5% (7.875% for this example). Since 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 up to $417,000
  • Offers not available on investment properties
  • See below for loan to value and combined loan to value limits for conforming, jumbo, super jumbo mortgages, and condos
  • See additional details below


  • Free 90-day rate lock¹ 
  • This mortgage can be eligible for the PenFed Real Estate Rewards Program, which can save up to $10,000 when buying a home. Use of a network real estate agent and preferred title provider required. Learn More 


Keep in Mind: Have these on-hand when you apply: your previous two Federal Income Tax Returns, W2, current pay stub, and banking statements.

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Details and Disclosures

5/5 ARMs: Offers available for purchases and refinances. The initial rate can change every 5 years by no more than 2 percentage points up or down, 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. 
¹For a purchase transaction, the rate cannot be locked until PenFed receives a ratified sales contract executed by all required parties.
All Mortgage Programs: The application of points will be determined by the loan-to- value (LTV) ratio combined with certain representative credit scores. Points also apply to certain cash-out refinance transactions, certain condominium transactions, and some transactions with subordinate financing. Origination fees may apply to certain programs. The origination fee may be waived by adding 0.25% to the selected rate.
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 if required, and interest due until first payment, other cost 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.
Borrowers are required to have sufficient reserve assets available to cover 6 months full payments including principal, interest, homeowner’s insurance, property taxes and homeowner associated dues and/or mortgage insurance, if applicable. For non-primary residences, we require 12 months of reserve assets.
If a loan is withdrawn, the applicant may not reapply for at least 90 days from the date the application was withdrawn. All above disclosures apply to non-Veteran’s Administration (VA) loans. VA loans have different guidelines and eligibility requirements.
Conforming Mortgages: For loan amounts from $25,000 to $417,000. 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%. The maximum loan –to –value (LTV) for 15/15 ARMs is 80% and combined loan-to-value (CLTV) is 95%.

Jumbo Mortgages: For loan amounts above $417,000 to $750,000. 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%.


Super Jumbo Mortgages: For loan amounts above $750,000. 5/5 ARMs up to $4 million and Fixed Loans up to $2 million. The maximum loan-to-value (LTV) and combined loan-to-value (CLTV) is 80%. In DC, MD and VA only, the maximum LTV and CLTV for condominiums as a primary residence is 80%. The LTV and CLTV in all other states for condominiums is 75%. The LTV and CLTV for second home condominiums is 70% in all states.
All above disclosures apply to non-Veteran's Administration (VA) loans. VA loans have different guidelines and eligibility requirements.
All rates and offers are in effect as of August 2015, 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.