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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
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HOME

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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

5 Outstanding Reasons to Get an Adjustable Rate Mortgage

What You’ll Learn:Reasons to choose an adjustable rate mortgage

Topic Discussed:Purchase, Adjustable Rate Mortgage, First Time Home Buyer, Getting Started

Expected Read Time:3 MINS

Published: Sep 26, 2023

Getting an adjustable-rate mortgage (ARM) isn't always the best option. But sometimes, an ARM loan is exactly what you need. Find out when you should consider one.
LEARN MORE

What Homebuyers Need to Know About Closing Costs

What You’ll Learn:Average percentage for closing costs, typical fees, and ways you can save money

Topic Discussed:Purchase, Homebuying 101, First Time Home Buyer, Getting Started

Expected Read Time:3 MINS

Published: Sep 19, 2023

Learn who pays mortgage closing costs, how to estimate homebuyer cost to close, what fees make up closing costs, and ways to save.
LEARN MORE

What Are the Benefits of a VA Loan?

What You’ll Learn:VA loan down payment, closing costs, credit requirements, funding fee, and more

Topic Discussed:Purchase, VA Loans, Homebuying 101, Getting Started

Expected Read Time:6 MINS

Published: Aug 31, 2023

From low down payments to easier credit qualifying, learn 10 benefits of mortgages backed by the U.S. Department of Veterans Affairs (VA).
LEARN MORE

Is a Jumbo ARM Right For You?

What You’ll Learn:What is a jumbo loan, how a jumbo ARM works, pros and cons, and how to qualify

Topic Discussed:Purchase, Homebuying 101, Adjustable Rate Mortgage, Getting Started

Expected Read Time:5 MINS

Published: Aug 29, 2023

Buying a home in a highly competitive market or a mortgage above conventional loan limits? A jumbo ARM may be what you need. Learn more.
LEARN MORE

5 Reasons to Get an Adjustable-Rate Mortgage

What You’ll Learn:ARM advantages including low initial rates, potential savings, and rate caps AEM

Topic Discussed:Purchase, Adjustable Rate Mortgage, Homebuying 101, Getting Started

Expected Read Time:5 MINS

Published: Aug 25, 2023

Is a variable rate mortgage right for you? Find out five compelling reasons to consider an ARM and questions to help you decide.
LEARN MORE

Everything You Need to Know About VA Loan Closing Costs

What You’ll Learn:Types of VA loan closing costs, buyer and seller costs, VA loan funding fee

Topic Discussed:Purchase, VA Loans, Homebuying 101, Getting a Mortgage

Expected Read Time:6 MINS

Published: Aug 25, 2023

All mortgages come with closing costs, including VA loans. Here's what you need to know about the unique costs of VA loans.
LEARN MORE

7 Things to Know Before Buying in a Gated Community

What You’ll Learn:Pros and cons of gated communities, types of properties, amenities and more.

Topic Discussed:Purchase, Homebuying 101, Finding a Home, Getting Started

Expected Read Time:4 MINS

Published: Aug 23, 2023

What to consider before buying a home in a gated community. From amenities to safety, explore key factors to make an informed decision.
LEARN MORE

HELOC and Retirement ? What You Need to Know

What You’ll Learn:How to use home equity in retirement, how to qualify for a HELOC while retired

Topic Discussed:Purchase, HELOC, Home equity, Getting Started

Expected Read Time:4 MINS

Published: Aug 23, 2023

Learn how to use your home's equity while retired with a HELOC. Find out how it works and how to qualify for a HELOC during retirement.
LEARN MORE

Should I Buy Down My Mortgage Rate?

What You’ll Learn:What buy down points are and how to decide if you should buy down your rate

Topic Discussed:Purchase, First Time Home Buyer, Homebuying 101, Getting Started

Expected Read Time:5 MINS

Published: Aug 18, 2023

When you lock in a mortgage rate, you may consider buying down your rate with discount points. Read on to learn what to consider.
LEARN MORE

Using a HELOC to Update Your Home's Exterior

What You’ll Learn:Exterior home improvements and options for financing them

Topic Discussed:Purchase, HELOC, Home equity, Home Ownership

Expected Read Time:3 MINS

Published: Aug 11, 2023

Revitalize your home's exterior from basics to oasis ? and how a HELOC can help you make it happen.
LEARN MORE
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

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Free eBook Downloads

Buying a Home

Refinancing Your Home

Selling Your Home

FHA Loans

VA Loans

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.

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

APY = Annual Percentage Yield
APR = Annual Percentage Rate


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Routing #256078446

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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.


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