PenFed Mortgage with Confidence

PenFed’s Mortgage Affordability Calculator

EXPECTED READ TIME: 5 MINUTES

August 9, 2021

With our mortgage affordability calculator, it's quick and easy to see how much house you can afford. Take a few minutes to discover the minimum and maximum loan amount you might be able to qualify for and what your monthly payment could be.

This is a great way to quickly understand an approximate estimate of payments. If you’d like a more precise estimate of interest rate, payment, and more — based on your situation, you can use our “Get my Rate” tool by supplying some basic financial data.

Can I Afford a Mortgage?

If you’ve just started thinking about buying a home, your number one question is most likely how much you can afford. Although they may qualify for a larger home loan, some borrowers find that they’d prefer to be conservative and underbuy.

While other shoppers want to take advantage of low rates and purchase their dream home, they’re willing to use their maximum buying power.

No matter what your goals are — it’s good to look at all your options. Let’s get started.

There are four boxes to fill out on our affordability calculator.

1. Annual Income

List your yearly income before taxes from all sources. Include W2, social security, retirement, self-employment, child and spousal support, and any other ongoing income that will continue for at least three years

2. Monthly Debts

Include the total amount for recurring debts. Add up mortgage or home equity loans (that won’t be paid off), auto loans, student loans, personal loans, and minimum credit card payments.

3. Down Payment

The amount of money you have to put down determines what loan options you have available.

4. Loan Term

Choose from 15, 20, and 30 years.

Press calculate to see what you might be able to afford.

Mortgage Affordability vs. Standard of Living

Once you have a good idea of the maximum loan you could afford — take a step back. It’s easy to fall in love with a beautiful home at the highest mortgage amount you can get. But you also need to consider other factors that are important to you. It’s smart not to over-buy and discover that you have no money for anything else once you move in. Make sure you’re giving yourself some cushion room for lifestyle essentials. For example — do you need or want extra money each month for:

Private education
Vacations
Recreation
Investing

Loan Programs & Other Mortgage Calculators

Now that you have an idea of what you can afford — the next step is to investigate your different loan options. PenFed specializes in:

VA Loans
Conforming Loans
Jumbo Loans

VA Loans

If you’re a current service member, veteran, or eligible surviving spouse, a VA loan is an excellent choice if you qualify. You can get into a home with zero down, and the rates are exceptional. Find out what your payment, including principal, interest, taxes, and insurance, is with PenFed's VA mortgage calculator.

Conforming Fixed

Take advantage of our historically low fixed-rates with PenFed’s conforming mortgages. Whether you need financing for your primary residence, a second home, vacation home, or investment property — a conforming loan could be the answer.

Conforming loans follow the conforming loan limits. For 2023 the limits are $726,200 for most of the country and up to $1,089,300 in high-cost areas. Try out PenFed’s conforming mortgage calculator and see what your payment could be.

Jumbo Loans

For home loans above the conforming limits, you’ll need a jumbo loan. PenFed offers these larger loans, and we can walk you through every step of the way. Use our easy jumbo mortgage calculator to determine what your monthly payment (including taxes and insurance) could be.

For more information about PenFed Mortgages:

PenFed Mortgage:

800-970-7766

Get Started

Disclosures

¹Except for holidays, rates are updated Monday through Friday at 10:15am EST. The advertised rates and points are subject to change. The information provided is based on 30_YEAR_FIXED_CONFORMING_POINT discount point, which equals percent of the loan amount, and assumes the purpose of the loan is to purchase a property with a 30-year, conforming, fixed-rate loan. Loan amount of $400,000; loan-to-value ratio of 75%; credit score of 760; and DTI of 18% or less. The property is an existing single-family home and will be used as a primary residence. The advertised rates are based on certain assumptions and loan scenarios, and the rate you may receive will depend on your individual circumstances, including your credit history, loan amount, down payment, and our internal credit criteria. Other rates, points, and terms may be available. All loans are subject to credit and property approval.

^*Prime Rate is RV Prime Rate % as of Boat Prime Effective Date . The APR for this Home Equity Line of Credit (HELOC) is based on prime plus a margin and can change monthly. 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 1020 ELOC OO CLTV 70 Rate % for primary residences and second homes.

Annual Fee: Notwithstanding the foregoing, an annual fee of $99 will be assessed on each account anniversary.
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.

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 $400,000.

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 $550 to $850 (some run higher).

Closing Cost Credit: PenFed will pay most closing costs associated with a 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.

Interest may be tax deductible, consult a tax advisor for further information regarding the tax deductibility of interest and charges.

Fixed Rate Advance Lock-In You may lock in an Annual Percentage Rate for Advances during the Draw Period. During your Draw 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 1020 ELOC OO CLTV 70 Rate % for primary residences and second homes and 4.75% for investment properties.

Property Insurance: Property insurance is required.

Multiple PenFed Loans: Multiple PenFed 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 PenFed 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).

Additional limitations may apply

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. Additional restrictions apply in Texas, so please ask a representative for details.
In all other states, the maximum CLTV is 85% on owner occupied properties and second homes. Additional restrictions or requirements may apply based on application characteristics.
Property type of Condo has a maximum CLTV of 80%.
The maximum CLTV available is dependent on credit qualification.
Rates vary depending on owner occupancy and CLTV and other loan criteria.

Minimum Loan Amount Requirements in all States:

For an owner occupied property or second home 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.

Other terms and conditions apply; call 844-918-4307 to speak with a representative for details. All rates and offers are subject to change without notice. To receive advertised product, you must become a member of PenFed.

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PenFed’s Mortgage Affordability Calculator