5/5 Home Equity Line of Credit
Access funds for short-term needs without the hassle. If you have temporary expenses such as tuition or short-term medical care, this line of credit provides a flexible and convenient option.
Access funds for short-term needs without the hassle. If you have temporary expenses such as tuition or short-term medical care, this line of credit provides a flexible and convenient option.
Loan to Value (LTV) |
Line Amount | Variable APR1 |
75% or Less LTV |
$25K - $400K up to 180 Months |
|
1 Rate adjusts once every 5 years. There is a minimum rate floor of % APR and a maximum rate of 18% APR.
Loan to Value (LTV) |
Line Amount | Variable APR2 |
70% or Less LTV |
$25K - $400K up to 144 Months |
|
2 Rate adjusts once every 5 years. There is a minimum rate floor of % APR and a maximum rate of 18% APR.
• Closing Costs Credit†
• The maximum Loan To Value for an Owner Occupied Home is 75% or less.
• The maximum Loan To Value for an Non-Owner Occupied Home is 70% or less.
†Closing Cost Credit: PenFed will pay most closing costs associated with an equity line of credit (ELOC) which includes: credit report, flood certification, settlement/closing, property ownership and encumbrances search, recording, property search, and quick close. Member is responsible for any city, county and/or state taxes if the subject property is located in FL, LA, MD, MN, NY, TN or VA. 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 36 months from the anniversary date of the loan closing, the member will be obligated to reimburse the full amount of the PenFed paid closing costs for the loan.
Home equity lines of credit (ELOC) are variable rate loans and the interest rate is subject to increase after consummation of the loan. Closing costs range between $500 and $8,500 for credit lines of $400,000. Contact a representative for additional details..
Interest may be tax deductible, consult a tax advisor for further information regarding the tax deductibility of interest and charges.
Home equity lines of credit (ELOC) are variable rate loans and the interest rate is subject to increase after consummation of the loan.
Appraisals: An appraisal is required for all applications with a combined loan to value (CLTV) over 80%. For applications with a CLTV 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 CLTV. 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 Insurance: Property insurance is required.
PenFed Mortgage Aggregate: If the total combined PenFed indebtedness for real estate loans against the collateral property exceeds $750,000 then the maximum CLTV is 80%. This total indebtedness includes a PenFed 1st mortgage, the new requested loan amount and any outstanding PenFed equity loan products.
Multiple Loans: Multiple equity loans and ELOCs are available as long as the member and collateral qualify (except Texas). The total PenFed 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).
5/5 Equity Line of Credit:
Minimum Loan Amount Requirements in all States:
• For an owner occupied property the minimum loan amount is $10,000 and the maximum amount is $400,000 with a CLTV of 85% or less of the fair market value and a maximum of $250,000 with a CLTV 85.01 to 90.00%.
• For a non-owner occupied property the minimum loan amount is $10,000 and the maximum amount is $400,000 with a CLTV up to 80% of the fair market value.
Other terms and conditions apply; call 1-800-970-7766, extension 6400 to speak with a representative for details. All rates and offers are as of 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.