1Closing Cost Credit: PenFed will pay most closing costs associated with a fixed equity 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 24 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.
Interest 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:
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).
Property in First Lien Position: Fixed equity products are not offered on properties that reflect Penfed in 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 80% CLTV in all states.
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.
PenFed does not lend on:
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)
Rate depends on loan term length, loan to value ratio (LTV), fair market value (FMV), and owner occupancy.
LTV ratio requirements:
Rates are higher for non-owner occupied properties. Other terms and conditions may apply. Call 800-970-7766 extension 6400 to talk to a representative for details.
Minimum Loan Amount Requirements in all States:
Call 800-970-7766, Extension 6400 for complete details.
All rates and offers are as of September 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.
This loan allows you to borrow based on the value of your home, minus the amount you still owe on your mortgage. It is a single lump sum loan for a set amount.
Home equity loans are great for short-term, fixed expenses, like home renovations, vacations, or debt consolidation.
Find out if a Home Equity Loan is the right choice for you.
This line of credit is based on the value of your home, minus the amount you owe on it and allows you to use the equity in your home as needed. Although you qualify for a set line amount you’ll only repay on the amount used.
A home equity line of credit is perfect when you want flexibility. A revolving line of credit gives you access to funds as you need them for the things you need, like college bills, home projects, or consolidating debt.
Find out if a Home Equity Line of Credit is the right choice for you.
This line of credit allows you to lock in your rate for the first 5 years, and can only adjust by 2% every five years not to exceed 5% over the life of the loan.
If you have recurring expenses that will last five years or less, this line of credit allows you to lock into a low rate. If you plan to pay the loan off in full within the five years, this option can save you money.
Find out if a 5/5 Home Equity Line of Credit is the right choice for you.
This line of credit gives you the lowest possible monthly payment. Your minimum monthly payment only includes the interest on the money you borrowed, rather than the principle plus the interest. At the end of the loan term any outstanding balance is due.
Interest-only loans can provide flexibility in your payment plan if you need to maximize your equity with low monthly payments or want to focus on a strict budget.
Find out if an Interest-Only Home Equity Line of Credit is the right choice for you.
This line of credit is also based on the value of your home, minus the amount you owe on it and allows you to use the equity in your home as needed. Although you qualify for a set line amount you’ll only repay on the amount used.
A home equity line of credit is perfect for consolidating recurring loan payments, such as college bills and high interest credit cards.
This equity line of credit has an interest rate that has the potential to adjust every 5 years.
This is a line of credit where your minimum monthly payment only includes the interest on the money you borrowed, rather than the principal plus the interest. At the end of the loan term any outstanding balance is due.
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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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