Home Equity Line of Credit
 

Key Features

 

OWNER OCCUPIED HOME -
80% OR LESS LOAN TO VALUE
 
Borrow $10,000 - $400,000
 
Prime + 0%
Variable 3.75% APR 
(Prime Rate is 3.25% as of
December 31, 2013)
 
There is a minimum rate floor of 3.75% APR and
a maximum rate of 18%APR
 
NON-OWNER OCCUPIED HOME - UP TO 75% LOAN TO VALUE 

Borrow $10,000 - $400,000

Prime + 1% Variable


Variable 4.75% APR 
 
(Prime Rate is 3.25% as of
 
December 31, 2013)
There is a minimum rate floor of 4.75% APR and
a maximum rate of 18% APR

 

 

  • Closing Cost Credit1 
  • Loans from $10,000–$400,000

Benefits

  • Available funds when you need them
  • Perfect for college other recurring expenses
  • Only pay on the funds that you use

Keep in Mind: Available in all 50 states and the District of Columbia. Allow; approximately 4-8 weeks from your completed application date until the proceeds of an approved loan are disbursed.

Not yet a PenFed member? Join now to apply.

Details and Disclosures

Equity Disclosures

 

1Closing Cost Credit: PenFed will pay most closing costs associated with a fixed equity, equity line of credit (ELOC) and 5/5 ELOC loan which includes: credit report, flood certification, settlement/closing, property ownership and encumbrances search, express delivery package, express delivery disbursal, 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 24 months (or 36 months for the 5/5 ELOC) 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 for details.

 

2Internet only rate. Higher rate will be assessed if you do not apply online.

 

3Interest may be tax deductible, consult a tax advisor for further information regarding the tax deductibility of interest and charges.

 

Appraisals: An appraisal is required for all applications with a loan to value (LTV) over 80%. For applications with a LTV 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 LTV.  An appraisal is required in the following circumstances:
• For any loan amount if the loan to value ratio (LTV) is greater than 80%; or
• For all fixed term equity loans and traditional equity lines of credit 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) and approximately 50% of our applications require an appraisal.

 

Property in First Lien Position: The maximum term for a fixed rate equity loan that reflects PenFed in the first lien position is 60 months. Equity products are not offered on properties that are non-owner occupied with a first lien position.

 

Property Insurance: Property insurance is required.

 

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 70% for properties in states of FL, MI, and 80% CLTV in all other states.

 

PenFed Refinances: If the member is refinancing an existing PenFed ELOC or fixed equity loan the following conditions apply:
• For loans opened less than 12 months ago, the member must take an additional $25,000.
• If the current loan has been open for more than one year, the borrower must take an additional $10,000.
• If the current loan is a PenFed 5/5 ELOC, the member must take an additional $25,000 no matter when the loan was opened.
 
Multiple Loans: Multiple equity loans and ELOCs are available as long as the member and collateral qualify (except Texas). The total indebtedness cannot exceed $400,000 for all equity and ELOCs combined.

 

Fixed Home Equity Loan: Rate depends on loan term length, loan to value ratio (LTV), fair market value (FMV), owner occupancy, and use of funds.

 

LTV ratio requirements:

• In Florida and Michigan, the maximum owner occupied LTV allowed is 70%.
• In Texas, the maximum owner occupied LTV allowed is 80% and non-owner occupied is LTV 75%.  Additional restrictions apply in Texas, so please ask a representative for details.
• In states other than Florida, Michigan and Texas, the maximum owner occupied LTV is 85% (first lien position is limited to 80% LTV) and non-owner occupied LTV is 75%. No equity product is offered for non-owner occupied in a first lien position.
• The maximum LTV for a condominium in all states is 70%.


Rates are higher for non-owner occupied properties. Other terms and conditions may apply. Call 800-970-7766 to talk to a representative for details.


Minimum Loan Amount Requirements in all States: 

  • For a fixed home equity loan and ELOC owner occupied property the minimum loan amount is $10,000 and the maximum amount is $400,000 with an LTV of 80% of less of the fair market value and non-owner occupied is 75% or less of the fair market value.
  • For a fixed home equity loan the minimum loan amount is $10,000 and the maximum amount is $200,000 with an LTV 80.01% to 85% of the fair market value.
  • For a 5/5 ELOC owner occupied property the minimum loan amount is $25,000 and the maximum amount is $400,000 with a LTV of 75% or less of the fair market value and non-owner occupied LTV of 70% or less of the fair market value.

 

Rates are higher for non-owner occupied properties.  Other terms and conditions may apply.  Call 800-970-7766 to talk to a representative for details.


Fixed Home Equity Loan Payment Examples: For an owner occupied home of $25,000 at 2.99% APR payable over 5 years: 60 monthly payments of approximately $446.33 each. For an owner occupied home of $25,000 at 3.99% APR payable over 15 years: 180 monthly payments of approximately $184.80 each.

 

Equity Line of Credit: Rate depends on loan term length, loan to value (LTV), fair market value (FMV) owner occupancy, and use of funds.

The minimum credit advance that you can receive is $100. (The minimum in Texas is $4,000). PenFed reserves the right to reject any advance that is converted to an electronic check by the merchant and submitted via Automated Clearing House (ACH).

 

LTV ratio requirements:

• In Florida and Michigan, the maximum owner occupied LTV allowed is 70%.
• In Texas, the maximum combined loan to value (CLTV) allowed is 80% with an ELOC amount not to exceed 50% of the market value, regardless of equity available.  Additional restrictions apply in Texas, so please ask a representative for details.
• In states other than Florida, Michigan and Texas, the maximum owner occupied LTV is 80% and non-owner occupied LTV is 75%. No equity product is offered for non-owner occupied in a first lien position.  
• The maximum LTV for a condominium in all states is 70%.
 

Rates are higher for non-owner occupied properties.  Other terms and conditions may apply.  Call 800-970-7766 to talk to a representative for details.

 
5/5 Equity Line of Credit:  Rate depends on loan term length, loan to value (LTV), fair market value (FMV) owner occupancy, and use of funds.

 

LTV ratio requirements:

• In Florida and Michigan, the maximum owner occupied LTV allowed is 70%.
• In Texas, the maximum combined loan to value (CLTV) allowed is 75% with an ELOC amount not to exceed 50% of the market value, regardless of equity available.  Additional restrictions apply in Texas, so please ask a representative for details.
• In states other than Florida, Michigan and Texas, the maximum owner occupied LTV is 75% and non-owner occupied LTV is 70%. No equity product is offered for non-owner occupied in a first lien position. 
• The maximum LTV for a condominium in all states is 70%.

Rates are higher for non-owner occupied properties. Other terms and conditions may apply. Call 800-970-7766 to talk to a representative for details.

 
5/5 Equity Line of Credit Rate Adjustments and Terms:  The 5/5 ELOC is an adjustable rate loan product with an APR that can be adjusted every five years. The rate is indexed to the United States Treasury Security adjusted to a constant maturity of five years as published in the Wall Street Journal each Tuesday. The 5/5 ELOC has a term of 180 months during which time the member can access the account. Non-owner occupied properties have a term of 144 months. The loan must be paid off at the end of the term. Members with expiring 5/5 ELOCs will be contacted prior to the maturity date with an offer to refinance the credit line if there is a balance. The member must qualify for the new credit line. Other terms and conditions apply; call 1-800-970-7766 for details.

 

Rates are higher for non-owner occupied properties.  Other terms and conditions apply.  Call 800-970-7766 to talk to a representative for details.

 

All rates and offers are as of April 2014 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.