PENFED MORTGAGES

FIRST TIME HOME BUYER

Home-buying doesn't have to be a hassle. PenFed is with you every step of the way with tools, information and great loan rates.

We know just how to help!

HOMEBUYING PROCESS MADE SIMPLE
4 Steps To Buying Your First Home

STEP 1

get started

GET STARTED

PenFed's tools and resources make it easy.

STEP 2

ESTIMATE YOUR COSTS

Use our calculators to see what you can afford.

STEP 3

CHOOSE THE RIGHT LOAN

Learn about the different options when it comes to choosing a mortgage.

STEP 4

START YOUR APPLICATION TODAY

ESTIMATE YOUR COSTS

Find out how much you can afford, what your monthly payments might be and more!

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Down payments less than 20% of property value may require Private Mortgage Insurance (PMI).
*PenFed Adjustable Rate Mortgages (ARMs) are calculated using 30 year Loan Terms
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$1538.00

The application of additional loan level pricing adjustments will be determined by various loan attributes such as Loan-To-Value (LTV) ratio, credit score, transaction type, property type, product type, occupancy, and subordinate financing.
The calculator above is for educational purposes only. Your actual rate, payment, and costs could be higher.

When you're buying a home, mortgage lenders don't look just at your income, assets, and the down payment you have. They look at all of your liabilities and obligations as well, including auto loans, credit card debt, child support, potential property taxes and insurance, and your overall credit rating. Use our home affordability calculator to determine how much of a mortgage you may be able to obtain.

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The calculator above is for educational purposes only. Your actual rate, payment, and costs could be higher. Get an official Loan Estimate before choosing a loan.

THE DIFFERENCE BETWEEN ARM AND FIXED RATE 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

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.


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Matt relocates frequently for work.

frequently relocates
Graph showing arm interest rates over time
lower initial interest rates

Matt enjoys the lower initial interest rate.                                 

fixed rate mortgage

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.


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The Dawsons love the area where they live and found their dream home.

dawsons dream home
graph of fixed rate mortgage
predictable payments

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. 

 

What Types of Mortgages Are There?

Posted September 2016
by PenFed Team

Types of Mortgages Available

Before buying a home, you’ll need to consider what type of mortgage best suits your needs. Whether you are a first time buyer seeking a home for your family or a seasoned buyer making a purchase for investing purposes, we can help you find a loan that fits your financial goals.  Learn more about the various loan options below:

Fixed Rate Mortgage 

Fixed rate mortgage loans are exactly what they sound like: the rate stays the same for the duration of the loan, regardless of the market. In a fixed mortgage, your monthly principal and interest payments remain the same for the life of the loan, usually 15 or 30 years. A 30-year mortgage will have lower monthly payments, but the 15-year allows you to repay the loan twice as fast, saving more than half the total interest costs.

When Is A Fixed Rate Ideal?

If you’re planning to settle down and stay in your home for the long term, a fixed loan might be your smartest option. Not only will it help you afford more expensive properties but it can also provide you more time to build equity.

The fixed rate mortgage allows for different timeframes.  Choose from a 30-year mortgage, which will allow for lower monthly payments, or a 15-year mortgage, which allows you to repay the loan twice as fast.

Adjustable Rate Mortgage

With an adjustable rate mortgage, your monthly principal and interest payments remain the same for a certain number of years (usually five or 15). If you do not refinance prior to the end of the fixed rate, the rate can rise or fall, depending on the state of the market.

When Is An Adjustable Rate Ideal?

Adjustable Rate Mortgages is a great option, if you don’t want to be tied down to your investment.  If you plan to move or refinance before the term adjusts, an ARM can help you get a lower interest rate initially.

It's important to take into account the housing market in your area and in general in order to decide if an ARM is a good choice for you: do you expect to easily be able to sell your home at a profit before the term adjusts.

VA Fixed Mortgage

We work hard to provide affordable options for the people who have served and defended our country. If you’re a veteran or a member of the military, consider a VA Fixed Loan.

A VA mortgage is available only to veterans and members of the U.S. military. The loan is guaranteed by the Department of Veterans Affairs (VA) and requires a low or no down payment., which allows for low to no down payment, and a faster payoff.  

Check out the VA Mortgage Center for more information about our  30 Year Fixed VA and a 15 Year Fixed VA Mortgage.

How To Qualify

If you’re hoping to qualify for a VA Fixed Mortgage, you must acquire a Certificate of Eligibility from the government. 

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