Routing # 256078446
MORTGAGE KNOWLEDGE CENTER
PenFed Mortgage with Confidence

Rates starting at
January 7, 2022
Whether you’re shopping for a new home, renovating your current one, or just dreaming – read on to discover the top 10 luxury home features you can’t do without. And the good news is you can add all or some to almost any home – and you don’t need a mansion. Read on to see which features are must-haves for you and your lifestyle.
#1 Modern Open Floorplan
Picture this – tall ceilings, an open floor plan, and impressive floor-to-ceiling windows. No matter what part of the country you’re in, those features are the number one choice for homeowners. And if you’re in a cooler climate, you’ll, of course, need a fireplace and heated floors. Besides the open floorplan, you’ll also need the most recent smart home automation to control lighting, temperature, and security.
#2 Gourmet Kitchen
The kitchen is the heart of the home, especially if you do a lot of entertaining. And with an open floor plan, the cook and hostess can be included. Gourmet kitchens include granite countertops, stainless steel appliances, and top-of-the-line cabinetry. You’ll also need one or two islands, depending on how much space you have. Islands add extra workspace and casual seating. Plus, they can be custom-built to flow with the layout of your kitchen. Recent trends show the island can be a different color than the cabinets to make it the focal point of the room. And don’t forget beautiful large windows for natural lighting along with custom lighting throughout your kitchen
#3 Wine Cellar
If you’re a wine connoisseur, make sure you have a wine cellar. It should be placed in the most humid and coolest part of your home. If you have a basement, that’s the most common location. The size can vary from a small closet to your own private tasting room. Climate control is the most important element, so make sure you hire a contractor with experience building custom wine cellars.
#4 Luxurious Master Suite
Step into your own peaceful oasis – the ideal master suite has a sitting area, fireplace, and large his and her closets with custom storage for clothes, sweaters, shoes, purses, hats, and jewelry. Along with the bedroom area, you’ll need a large master bathroom with double sinks, a stand-alone deep soak tub, a large custom shower with custom tiling, and of course, heated floors and towel racks for the cooler climates.
#5 Upstairs Super Laundry
You know what a laundry room is – but what about a “super laundry”? Just like it sounds, it’s larger than traditional laundry rooms. In addition to the top-of-the-line washer and dryer, there should be storage, countertops to fold laundry, and a space for ironing. And don’t forget plenty of storage. The best laundry rooms are close to the bedrooms – especially in a two-story home.
#6 Large Home Office
Suppose you’re self-employed or work from home splurge on a home office. If possible, have it on an outside wall with French doors and large windows so you can enjoy the outdoors even when you’re working—plan for built-in bookcases and custom furniture to get maximum utilization of the space. Consider what you’ll need day-to-day. Besides a desk and work area, have a seating area for any visitors. And for the final touch, include beautiful lighting and artwork.
#7 High-Tech Media Room
Your media room will have a personality of its own. Some of the most popular features include a home theater with theater seating, a gaming area, surround sound, and soundproofing. Make sure there’s no light coming into the room, and the paint on the wall should be flat, so there’s no reflection. Include an area for a bar, a small refrigerator, and storage for snacks.
#8 Custom Fitness Room
No luxury home is complete without a gym. Design your gym around your workout regime, whether it’s strength training, general fitness, cardio, or rehab. Designate an area for cardio equipment like a Peloton bike or NordicTrack rowing machine. Surprisingly, the best flooring for in-home gyms is carpet because it’s soft and easy on your joints. And lastly, make sure the room is well insulated with excellent AC and heat.
#9 Oversized Garage
Whereas the kitchen might be the most important room in the house, some will argue and say it’s the garage. Having a garage large enough for all of your vehicles, storage, and a big workbench is a dream for many homeowners. And for added aesthetics, consider vibrant and long-lasting epoxy flooring. For the garage door, consider beautiful hardwood. The other option is glass garage doors made with privacy glass. That way, when you’re in the garage, you can enjoy the outdoors, but no one can see in.
#10 Outdoor Living Area
Expansive outdoor living areas are a must no matter what part of the country you live in. Top of the list is the outdoor kitchen, complete with kitchen appliances, countertops, a refrigerator, and an icemaker. And don’t forget the wide-screen TV. Make sure to add a BBQ area too. This type of outdoor living area is especially popular in warm states like California, Texas, Arizona, and Florida.
Final Tips and Suggestions for Success
- Hire a local contractor with good reviews and plenty of experience.
- Consider a home equity line of credit (HELOC) to finance your renovations.
- Use top-quality material that will last for years to come.
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Mortgage Products
Disclosures
*Prime Rate is 6.750% as of December 12, 2025. 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 6.750% 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 6.750% for primary residences and second homes.
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.
