Pentagon Federal Credit Union
Login Accounts
Search
  • Routing # 256078446
  • Partners
  • Member Discounts
  • Wealth
  • Foundation
  • Branches & ATMs
  • About
  • Search
  • Checking & Savings
    • Checking
      • Free Checking
      • Access America Checking
      • All Checking Accounts
    • Savings
      • Premium Online Savings
      • Regular Savings
      • Money Market Savings
      • All Savings Accounts
    • Certificates
      • Money Market Certificate
      • Coverdell Education Certificate
      • All Certificates
    • IRAs
      • IRA Certificate
      • IRA Premier
      • IRA Savings Account
      • All IRAs
    • How Can We Help?
      • Contact Us
      • FAQs
      • Forms
      • Advice Center
    • Special
      • Save smarter with higher savings rates
  • Credit Cards
    • Our Cards
      • Credit Cards Overview
    • How Can We Help?
      • Contact Us
      • Disclosures
      • Resource Center
    • Special
      • Choose the perfect card - Learn More
  • Auto
    • Auto Loans
      • Purchase
      • Refinance
      • Car Buying Service
    • Protection
      • Vehicle Protection
      • GAP Insurance
      • Debt Protection
    • How Can We Help?
      • Contact Us
      • FAQs
      • Forms
      • Advice Center
    • Special
      • Find your next car - through PenFed Car Buying Service
  • Mortgage & Home Equity
    • Purchase
      • Buy a Home
      • VA Loan
      • FHA
      • Conventional Fixed
      • Jumbo Loan
      • Power Buyer
    • Refinance
      • Refinance your Home
      • VA Streamline
    • Home Equity
      • HELOC
    • Real Estate Services
      • Find An Agent
    • Tools & Resources
      • Knowledge Center
      • eBooks
      • New Homebuyer
      • Calculators
      • PenFed Title, LLC
      • Contact
    • Special
      • Increase your wins , Become power buyer certified
  • Loans
    • Personal Loans
      • Personal Loans
    • Student Loans
      • Student Loan Refinancing
      • In-School Student Loans
    • How Can We Help?
      • Contact Us
      • FAQs
      • Forms
      • Advice Center
    • Special
      • Personal Loans made easy online
  • Learn
    • Learning Hub
      • Learning Center
      • Mortgage Knowledge Center
      • Advice Center
      • Financial Assistance Center
      • Emergency Furlough Relief Assistance
      • Natural Disaster Relief Assistance
    • About PenFed
      • About
      • FAQs
      • Forms
    • Security & Fraud
      • Security Center
    • How Can We Help?
      • Careers
      • Contact Us
    • Special
      • Exclusive Member Offer - T mobile
  • Join Now
  • Log In
  • Accounts
  • Resources

Affinity Title

MORTGAGE KNOWLEDGE CENTER

PenFed Mortgage with Confidence

Home Buying Steps

  • Getting Started
  • Finding a Home
  • Getting a Mortgage
  • Home Ownership

Mortgage Topics

  • VA Loans
  • Conventional Loans
  • First Time Homebuyer
  • Home Equity
  • Homebuying 101
  • Checklists
  • Adjustable Rate Mortgages
  • PenFed Top 10
  • Refinance
  • Jumbo Loans
  • FHA
  • Videos

Mortgage Products

  • Mortgage Center
  • Refinancing
  • Home Equity
image

CONVENTIONAL LOANS

Rates starting at % (APR %)¹

 

Apply before becoming a member.

After your application, we’ll help you:

1. Discover you’re eligible to become a PenFed member

2. Open a Savings/Share Account and deposit at least $5

  1. Home
  2. Mortgage Knowledge Center
  3. Top 10 Tips When Choosing a Home Warranty Company

MORTGAGE

Top 10 Tips When Choosing a Home Warranty Company

What you'll learn: What type of home warranty is right for you

EXPECTED READ TIME: 6 MINUTES

October, 22, 2021

We’ve all had that sinking feeling when an appliance fails to operate as it should, or a major system failure wreaks havoc on your plans -- and your budget. In order to build more consistency into your home maintenance schedule and plan for the unexpected, a home warranty may be a good option.

However, choosing a home warranty company isn’t as easy as picking the first company you find on Google. First, you’ll want to take a look at the range of services and the hidden costs that differentiate one provider from another. Here are ten things to take into account as you start your search.

1.   Upfront Cost

This is probably the price you’re most familiar with and the one you’re most likely to compare -- the upfront annual cost (sometimes broken up into monthly payments) that makes you eligible for a home warranty company’s services. This usually amounts to a few hundred dollars plus the cost of optional add-ons.

2.   Optional Coverage

There are a variety of systems and items that are not covered by a standard home warranty. For these, you’ll find optional add-ons that are priced separately. Optional coverage can be purchased for pools and spas, guest houses, tiny homes, or accessory dwelling units, well and septic systems, and extra appliances.

3.   Call Fee and Deductible

This is where you start getting into the nitty-gritty of how much it will cost when you actually need a repair or replacement. First, there will be a fee to initiate a service call. Then there is an amount you’ll pay as a deductible for any completed repairs. When judging whether or not to use your home warranty, consider whether the cost of repair or replacement is likely to be more than the total you’ll pay for these items. If not, you may be better off with your own independent repair professional.

4.   Maintenance Requirements

To comply with your warranty obligations, you may have specific maintenance requirements, including semi-annual inspections and services. It is important that you keep track of these to ensure that you don’t accidentally void your warranty. Remember that a home warranty is no substitute for consistent upkeep and scheduled maintenance.

5.   Uncovered Exceptions

Standard home warranties do not cover most structural elements like doors, windows, and roofs. In addition, outdoor features like in-ground irrigation systems may not be considered part of the home’s internal systems. Finally, watch out for secondary appliances and systems, like dual HVAC systems or an additional freezer or laundry room appliances. These may require additional add-on coverage.

6.   Customer Reviews

One of the best things about evaluating service providers today is that you can generally determine what to expect before you commit. In addition, online reviews can offer you a sense of how the service operates and whether it is worth the cost. So do your research and choose the warranty company that is consistently highly rated and responsive.

7.   Annual Limits

Check for annual limits that can kick in if you have several repairs in the same year. This is especially important if you know that a major component is on its last leg. The annual limit may keep it from being fully paid for in the event of a system failure. On the other hand, suppose you expect to be facing more than one major repair in a year. In that case, it’s a good idea to explore additional coverage options or to set aside a little extra money in your savings each month in anticipation.

8.   Fine Print

While home warranty companies may court new customers with big splashy specials and promises, it’s the fine print that tells you what will happen after you sign up. Take the time to read up on the service’s exceptions and exclusions so that you’re not surprised later. Don’t hesitate to ask questions before you sign, especially if you are unsure about any of the specifics you find there.

9.   Reporting Process

It’s a good idea to find out how easy (or difficult) it is to report problems in your home and how long you’ll wait for a scheduled service call. Then, look for convenient apps or online submissions so that you won’t spend your time sitting on hold to book a repair.

10.   Choice and Flexibility

Ultimately, the more options the home warranty company provides for you, the more likely you will be satisfied with their service. Ideally, the service should be designed to fit your needs, not the other way around. So, add that to your home buying checklist. It’s worth taking the time to shop around and find a warranty provider that is truly focused on what’s best for you and your home.

For more information about PenFed Mortgages:
 

PenFed Mortgage: 

800-970-7766

Get Started

SIMILAR ARTICLES

10 Spring Chores to Keep Your Home in Top Shape

Take a look at some spring chores and home improvements that will protect your home's value this season.
spring house chores

10 Summer Chores to Keep Your Home in Top Shape

The warm weather is here and the sun is out. Here are some summer chores to tackle this summer and protect your home's value.
summer house chores

10 Fall Chores to Keep Your Home in Top Shape

Take a look at some home improvements you should tackle this fall. This routine maintenance can protect your home's value this season.
fall house chores

Winter Chores to Keep Your Home in Top Shape

Take a look at some home improvements you should tackle this winter. This routine maintenance can protect your home's value this season.
winter house chores
image

CONVENTIONAL LOANS

Rates starting at % (APR %)¹

 

Apply before becoming a member.

After your application, we’ll help you:

1. Discover you’re eligible to become a PenFed member

2. Open a Savings/Share Account and deposit at least $5

Home Buying Steps

  • Getting Started
  • Finding a Home
  • Getting a Mortgage
  • Home Ownership

Mortgage Topics

  • VA Loans
  • Conventional Loans
  • First Time Homebuyer
  • Home Equity
  • Homebuying 101
  • Checklists
  • Adjustable Rate Mortgages
  • PenFed Top 10
  • Refinance
  • Jumbo Loans
  • FHA
  • Videos

Mortgage Products

  • Mortgage Center
  • Refinancing
  • Home Equity

PenFed HELOC

Rates as Low as % APR* with flexible use of funds

Apply before becoming a member.

After your application, we’ll help you:

1. Discover you’re eligible to become a PenFed member

2. Open a Savings/Share Account and deposit at least $5

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 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 % as of . 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 % 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 % 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.

  • Locations
  • Careers
  • Foundation
  • Contact Us

This credit union is federally insured by the National Credit Union Administration. Rates are current as of December 2023 unless otherwise noted and are subject to change.

APY = Annual Percentage Yield
APR = Annual Percentage Rate


  • facebook
  • twitter
  • linkedin
  • youtube
  • instagram
Download the PenFed app on Apple Store Download the PenFed app on Google Play
Read More about Equal Housing
Routing #256078446

©2023 Pentagon Federal Credit Union

Privacy
Security
Disclosures
Fees
Rates
Forms
Site Map

We use cookies to provide you with better experiences and allow you to navigate our website. By clicking “I Accept”, you consent to our use of cookies in accordance with our Privacy, GDPR and Cookie Policies.If you are a California resident, please visit our Privacy Policy page for the Notice of Right to Opt-Out of Sharing.

×

IMPORTANT NOTICE

You are leaving PenFed.org and entering a third party Website that is not a part of Pentagon Federal Credit Union.


The content you are about to view is produced by a third party unaffiliated to Pentagon Federal Credit Union. PenFed takes no responsibility for the content of the page.


IMPORTANT NOTICE

You are leaving PenFed.org and entering a third party site. PenFed Realty, LLC is wholly owned by PenFed and this referral may provide PenFed a financial or other benefit.


For more information about the relationship between PenFed and PenFed Realty, LLC, see the Affiliate Business Arrangement Disclosure.


IMPORTANT NOTICE

You are leaving PenFed.org and entering a third party Website.


The content you are about to view is produced by a third party website that is unaffiliated to Pentagon Federal Credit Union. PenFed takes no responsibility for the content of the page.


IMPORTANT NOTICE

You are leaving PenFed.org and entering a third party site. PenFed Title, LLC is wholly owned by PenFed and this referral may provide PenFed a financial or other benefit.


For more information about the relationship between PenFed and PenFed Title, LLC, see the Affiliate Business Arrangement Disclosure.


CONTINUE OR CANCEL

Member Login

Please enter a valid username.

I need help logging in

Having Trouble?
Forgot Username
Forgot Password
Forgot Username and Password
Unlock Account


First time logging in?

Create an online account

Not yet a member?

Become a member and take advantage of products and exclusive offers!

Join Now

Get Started

×

LOGIN

JOIN
Dismiss
PenFed App
PenFed PenFed, Inc FREE - On Google Play