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Our Most Popular Mortgage Loan Options
Your rate, payment, and costs, could be higher. Get an official Loan Estimate before choosing a loan. The following rates are based on a credit score above . Click on the Learn More button for more details.
1Rates are based on evaluation of credit history, loan-to-value, and loan term, so your rate may differ. Rates subject to change at any time.
*Payments shown do not include taxes or insurance, actual payments may be greater. Rates and offers are in effect as of , offered for a limited time and subject to change without notice. Example based on $
loan. Other restrictions apply.
1Rates are based on evaluation of credit history, loan-to-value, and loan term, so your rate may differ. Rates subject to change at any time.
*Payments shown do not include taxes or insurance, actual payments may be greater. Rates and offers are in effect as of , offered for a limited time and subject to change without notice. Example based on $
loan. Other restrictions apply.
5/5 ARM
Adjustable Rate Mortgage
| Term | Rates as low as1 | APR as low as1 | PRINICIPAL & INTEREST* |
| First 60 | $ |
||
| Next 300 | $ |
1Rates are based on evaluation of credit history, loan-to-value, and loan term, so your rate may differ. Rates subject to change at any time.
*Payments shown do not include taxes or insurance, actual payments may be greater. Rates and offers are in effect as of , offered for a limited time and subject to change without notice. Example based on $
loan. Other restrictions apply. Rate is variable and can increase by no more than
percentage points after the initial five year period and at each subsequent annual rate adjustment, with a lifetime maximum adjustment of
% (
% for this example). Since the value of the index in the future is unknown, the First Adjustment Payments displayed are based on the current index plus margin (fully indexed rate) as of the date above.
Estimate Your Cost
Mortgage Loan Calculators
Down payments less than 20% of property value may require Private Mortgage Insurance (PMI).
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THE DIFFERENCE BETWEEN ARM AND FIXED RATE HOME MORTGAGES
When choosing between an adjustable rate mortgage (ARM) or fixed rate, it’s important to understand how they work and what your needs are. Meet Matt and The Dawsons and see what choice they made.
ADJUSTABLE-RATE MORTGAGE
With an adjustable-rate mortgage, the interest rate may change in relation to an index and payments may go up or down accordingly.
Matt relocates frequently for work.
Matt enjoys the lower initial interest rate.
FIXED-RATE MORTGAGE
With a fixed-rate mortgage, the interest rate and the monthly payment of principal and interest stay the same during the life of the loan.
The Dawsons love the area where they live and found their dream home.
The Dawsons prefer the predictability of long-term, stable payments.
How long am I going to stay in my home?
If you don’t plan to stay in your home for a long time you may want to consider an ARM, which typically has a lower initial interest rate than a fixed rate and you may save money in interest charges. The money you save could be put toward retirement, paying off debt, building an emergency fund, and more.
What can I afford?
Knowing how much you can afford to pay month to month in mortgage payments will also help you decide between an ARM or fixed-rate mortgage.
LEARN MORE
Outstanding service ethic.
Washington, DC
The American do-it-yourself mentality has driven our nation’s dynamic success at every level. The power of personal investment and pride get things accomplished on time and on target.
Ready To Take The Next Step?
My parents started with PenFed, and so did I.
San Francisco CA
I joined PenFed because both my parents were members - so glad I did. PenFed helped me get a great rate on my first new car.
Ready To Take The Next Step?
Consistent low rates and easy to work with.
Newark NJ
I went to Penfed to see if I qualified for a mortgage. My friends told me about all the trouble they've had using other lenders, but penfed made everything easy for me. Thank you Sarah and PenFed!
Ready To Take The Next Step?
Wherever I travel, I can work with PenFed.
Atlanta GA
I just started using Penfeds new Travel AMEX card on my last trip to Basal - my other cards charge me just for being away but not this card with Penfed.
Ready To Take The Next Step?
Looking for an investment property?
An investment property can be used to provide and supplement income. Whether you are considering buying a property to lease out, renovate and lease or simply hold for a few years, a balloon mortgage might be just the right option for you.
10-YEAR
BALLOON
Investment Property Mortgage
1Rates are based on evaluation of credit history, loan-to-value, and loan term, so your rate may differ. Rates subject to change at any time.
**This payment example assumes a loan with![]( "INVESTMENT_MORTGAGE_LOANS_10_YEAR_BALLOON_TIER1_POINTS")
points, a loan amount of $![]( "INVESTMENT_MORTGAGE_LOANS_10_YEAR_BALLOON_TIER1_EXAMPLELOANAMOUNT")
and an estimated property value of $143,000. Payments shown do not include taxes or insurance escrows; actual payments may be greater. Note: this is a 10-year fixed rate mortgage amortized over 30 years with the balance due and payable in full at the time of maturity. Loan matures in 10 years; you may apply to refinance the balloon payment ($![]( "INVESTMENT_MORTGAGE_LOANS_10_YEAR_BALLOON_TIER1_PAYMENT_2_AMOUNT")
in this example) at maturity.
10-YR Balloon