PenFed Credit Union Launches Financial Education Resource Center
TYSONS Va., Nov 1, 2018 –Today PenFed announced the launch of its Financial Education Resource Center providing consumers a robust, online learning experience with the latest in financial literacy tools and resources.
The resource center includes a library of financial education modules and tools. The first two modules focus on mortgages and how to prepare financially before buying a home as well as managing finances as a home owner. Additional modules will be added to the platform and focus on other areas of personal finance.
“Buying a home is potentially the largest purchase a person will make in their lifetime and we want to provide our members with the resources they need to make informed decisions,” said Winston Wilkinson, PenFed Executive Vice President and President of Mortgage Banking. “A mortgage is a long-term relationship and at PenFed we are committed to servicing all of our loans and providing our members with the best experience.”
Findings from a recent PenFed Credit Union National Mortgage Survey conducted by nationally recognized market research firm, McLaughlin & Associates, reveal the importance of further consumer education around the mortgage process. The survey found that 37 percent of adults and 52 percent of millennials are looking to purchase a home in the next two years.
Additionally, two-thirds (65 percent) of homeowners didn’t shop around for a mortgage, despite most likely being the biggest purchase a person can make. The results also identified common misconceptions around mortgages including:
The plurality (44 percent) believes the best mortgage is the one with the lowest rate. The lowest rate mortgage isn’t always best and consumers should consider additional factors including the total closing costs and the broader annual percentage rate. It’s also important to choose a company you trust and consider one that you already have accounts with since it can simplify payments.
The majority (58 percent) think an Adjustable Rate Mortgage (ARM) is for risk takers. An adjustable rate mortgage is perfect for those staying in their home for less than 5 years. A 5/5 ARM product has a fixed rate for the first five years and is likely to have a lower payment than a 30-year fixed-rate.
About half (48 percent) say being pre-qualified is not the same thing as being pre-approved, but a slight majority either says it’s true (30 percent) or they are unsure (22 percent). Being pre-qualified may give you an idea of what you can afford, but it doesn’t mean you are pre-approved for a loan, which entails a more comprehensive process and makes you a more qualified buyer.
About PenFed Credit Union
Established in 1935 as the War Department Credit Union, Pentagon Federal Credit Union (PenFed) is America’s second-largest federal credit union, serving 1.7 million members worldwide with over $24 billion in assets. Our mission is to help members reach their financial potential. PenFed Credit Union offers market-leading mortgages, automobile loans, credit cards, student loans, checking, certificates, and a wide range of other financial services with members’ interests always in mind. We have a proud history of serving those in the Armed Forces, Department of Defense, Department of Homeland Security, Military Associations, eligible veterans and retirees, and their families. You may also qualify through membership in select organizations within our field of membership. PenFed Credit Union is federally insured by the NCUA and is an Equal Housing Lender. To learn more about PenFed Credit Union, visit PenFed.org, like us on Facebook and follow us @PenFed on Twitter. Interested in working for PenFed? Check us out on LinkedIn. We are proud to be an Equal Employment Opportunity Employer.