• 5/1 Adjustable Rate Mortgage (ARM)

    KEY FEATURES

    5/1 Adjustable Rate Mortgage (ARM)

    Adjusts annually after the first five years

    Month Rate APR PAYMENT*
    First 60 2.625 3.455 401.65
    Next 300 3.750 3.455 453.91

    *Payments shown do not include taxes or insurance, actual payments may be greater. Rates and offers are in effect as of September 9, 2016, for new applications only, for a limited time, and subject to change without notice. Example based on $100,000 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 ---% (--- in 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.

    KEY FEATURES
    • For home purchases or refinancing
    • Loan amounts up to $417,000

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

  • DISCLOSURES
     

    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.

    5/1 ARMs - Offer available for purchases and refinances. The initial rate can change after 5 years by no more than 2 percentage points up or down. After the initial rate change, the rate will adjust annually by no more than 2 percentage points up or down, never to exceed 6 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 2.750% for the new products as long as it does not exceed the 2% adjustment cap.

    Investment properties not eligible for offers. 

    Conforming Mortgages: For loan amounts from $25,000 to $417,000 (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%.

    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 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 September 2016, 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.