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The fixed rate is eligible for all Home Equity 10/20 current applications and new applications taken by 12/31/19. This offer is only available for advances processed on the day the Home Equity account is opened. If a balance is remaining on the advance on 1/1/2021 the rate will revert to the note rate. 

Closing Cost Credit: PenFed will pay most closing costs associated with an interest only home equity line of credit (HELOC) 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 member, who is responsible for the fee whether or not the loan closes, will pay the cost. 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.

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 (HELOC) are variable rate loans and the interest rate is subject to increase after consummation of the loan on monthly basis. Closing costs range between $500 and $8,500 for credit lines of $500,000. Contact a representative for additional details.

† Annual Fee: Notwithstanding the foregoing, an annual fee of $99 will be assessed on each account anniversary if $99 in interest was not paid during the preceding 12-month period
Appraisals: PenFed will attempt to establish value via an independent method. If that method is unsuccessful or the value is not sufficient for the amount requested, an appraisal will be required regardless of CLTV. An appraisal is always required in the following circumstances:
• For all loans 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 $150 to $525 (some run higher).

Fixed Rate Advance Lock-In You may lock in an Annual Percentage Rate for Advances during the Advance Period. During your Advance Period, you may choose to have three separate Fixed Rate Advances locked in at any one time, with a maximum of two new Fixed Rate Advances per calendar year. Each Fixed Rate Advance must equal or exceed Ten Thousand Dollars ($10,000.00) and you may not request a Fixed Rate Advance that would cause the amount you owe to exceed your Credit Limit. The only term option for your Fixed Rate Advance is 240 months (“Fixed Rate Advance Term”). However, the term of your Fixed Rate Advance cannot exceed your Repayment Period.

Fixed Rate Advances will be amortized over the Fixed Rate Advance Term with the payment consisting of principal and interest. Your Annual Percentage Rate for a Fixed Rate Advance will be calculated by adding your Prime Rate, your Margin and the Additional Fixed Rate Lock-In Margin. Your Annual Percentage Rate for a Fixed Rate Advance shall not exceed 18% and shall be equal to or greater than 3.75% for primary residences and second homes and 4.75% for investment properties.

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 HELOCs are available as long as the member and collateral qualify (except Texas). For Equity loans and HELOCs the total indebtedness cannot exceed $500,000 for all Equity and HELOCs combined.

PenFed does not lend on:

• Mobile homes
• Co-ops or time-shares
• Properties that are currently listed on the market for sale
• Commercial property or property used for commercial purposes, even if a residence is part of the property
• Undeveloped property (land only)
• Properties with more than 4 units

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).

Interest Only Home Equity Line of Credit:

• This Account has a Draw Period of 10 years, followed by a repayment period of 20 years.
• If only minimum payments are made during the draw period, the loan balance will not decrease.
• In Texas, the maximum CLTV available is 80% on owner occupied properties and 75% on non-owner occupied properties. Additional restrictions apply in Texas, so please ask a representative for details.
• In all other states, the maximum CLTV is 90% on owner occupied properties and 80% on non-owner occupied properties.
• Property type of Condo has a maximum CLTV of 80%; except for Texas non-owner, occupied properties are 75%.
• Rates vary depending on owner occupancy and CLTV.

Minimum Loan Amount Requirements in all States:

• For an owner occupied property the minimum loan amount is $25,000 and the maximum amount is $500,000 with a CLTV of 85% or less of the fair market value and a maximum of $250,000 with a CLTV of 85.01 to 90.00%.

• For a non-owner occupied property the minimum loan amount is $25,000 and the maximum amount is $400,000 with a CLTV up to 80% of the fair market value.

Other terms and conditions apply; call 800-970-7766 to speak with a representative for details. All rates and offers are as of September 20, 2019 and subject to change without notice. To receive advertised product you must become a member of PenFed.


We do business in accordance with the Federal Fair Housing Law and the Equal Credit Opportunity Act.

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