PenFed Credit Union provides beneficial benefits on its mortgage loans for home purchases and refinances, such as lender credits and waived closing costs.
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Pentagon Federal Credit Union is a nationwide, membership-based financial institution. Unlike many credit unions, PenFed is open to everyone. You’ll be qualified to apply for a mortgage loan once you’ve submitted your membership application and opened a savings account with a $5 minimum deposit, both of which can be done online.
PenFed has a wide range of home loans available, including jumbo loans, conventional fixed-rate loans, and home equity lines of credit (HELOCs). Additionally, members receive price breaks on home insurance and title services from the credit union’s associate businesses.
At a glance: Despite not offering FHA or USDA loans, PenFed Credit Union offers member discounts on related services and lender credits. Most borrowers should be satisfied with its selection of mortgages.
PenFed mortgage purchase review
Best for:
Unique feature: Depending on your loan amount, PenFed home loans offer lender credits ranging from $500 to $2,500.
Mortgages from Pentagon Federal Credit Union are available in both fixed and adjustable rates, as well as VA loans and jumbo mortgages.
Paying points, which are essentially advance interest payments, will lower your mortgage rate. In order to help you plan your finances, PenFed’s website clearly explains loan options with various rates and point amounts. It also provides incredibly detailed closing cost information.
PenFed’s lender credits help balance out higher rates by lowering your closing costs. The credits are based on how much you borrow:
PenFed mortgage loans also have no lender fees. Cash-strapped buyers might be willing to pay a higher rate if it means bringing less cash to closing because of the lender credit and the origination fee savings, which typically amount to 1% of the loan amount.
| Mortgage programs | Conventional, VA, jumbo |
| Fixed-rate loan terms | 10, 15, 20, 30 years |
| Adjustable-rate loan terms | 3/1, 5/1, 7/1, 10/1, 15/1 |
| Rates and fees |
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| Min. credit score |
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| Min. down payment |
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Pros and cons of buying a home through PenFed
There are many benefits to choosing a PenFed mortgage, but there are also some drawbacks.
Credible is not associated with PenFed, but we make comparing mortgage rates and shopping for a home loan simple. You can check prequalified rates from all of our partner lenders in as little as three minutes.
PenFed mortgage refinancing review
Best for:
Unique feature: PenFed covers a large portion of the closing costs for VA streamline refinance loans in addition to the standard rate-and-term and cash-out refinancing products.
PenFed offers mortgage refinancing for VA loans, jumbo loans, and conventional loans. If you’re looking for a cash-out refinance, you can experiment with different loan types, terms, and cash amounts using the site’s Get My Rates tool.
One notable option is the VA streamline loan. This product, also referred to as an Interest Rate Reduction Refinance Loan (IRRRL), enables current VA loan holders to quickly refinance to a lower rate without the requirement of an appraisal.
Additionally, closing costs may be rolled into the loan, and PenFed will even pay the VA funding fee.
The procedure for applying for a refinance is the same as for a loan to purchase a home. Although you can apply for pre-approval on the website, you must first speak with a loan officer to start the application process.
| Mortgage refinance programs | Conventional, VA, jumbo |
| Fixed-rate loan terms | 10, 15, 20, 30 years |
| Adjustable-rate loan terms | 3/1, 5/1, 7/1, 10/1, 15/1 |
| Rates and fees |
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| Min. credit score |
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Pros and cons of refinancing through PenFed
PenFed mortgages offer nice perks to homeowners looking to refinance. However, it’s crucial to comprehend the credit union’s restrictions as well.
How does PenFed stack up?
Veterans United is a good option if you’re a veteran looking for mortgage products. The lender has a comprehensive selection of VA loans, and it also provides FHA and USDA loans.
Reviews like this one on PenFed mortgages help you greatly in determining whether the lender is a good fit for your needs. But don’t apply before you’ve explored all your options.
It takes time to compare mortgage rates, but Credible can help. We make it simple to compare personalized rates and loan details from several lenders as an online mortgage broker so you can be sure you’re getting a good deal.
The company above is one of Credible’s approved partner lenders. You can fill out a single form to request rates from them as they compete for your business through Credible. Then, you can compare your available options side-by-side. Your personal information is not shared with our partner lenders unless you see an option you like, and requesting rates is free and has no negative effects on your credit score. If you successfully close a loan with one of our partner lenders, Credible will be compensated. This compensation has no bearing on the rates you receive or the fees you must pay (if any). About the author.
Credible contributor Daria Uhlig writes about real estate and mortgages. Publications like The Motley Fool, USA Today, MSN Money, CNBC, and Yahoo! Finance have featured her work.
Mortgage Lender Reviews:
The interest rates depicted on Credible represent the APR. The fixed interest rate is decided upon when the loan application is submitted and remains constant throughout the loan’s term. The 3-Month LIBOR index plus the appropriate Margin percentage are used to calculate the variable interest rate. The margin is fixed and based on your credit assessment at the time of application. For variable interest rate loans, the 3-Month LIBOR is 2. 375% as of July 1, 2018. The interest rate will change quarterly on January 1, April 1, July 1, and October 1 (the “interest rate change date”), and Discover Student Loans will base the adjustment on the 3-Month LIBOR Index, which is published in The Wall Street Journal’s Money Rates section 15 days prior to the interest rate change date, rounded to the nearest one-eighth of one percent (0.18%). 125% or 0. 00125). This may result in higher total payments, higher monthly payments, or both. Please visit http://www. discover. com/student-loans/interest-rates. html for more information about interest rates.
Student Loan Rate Disclosure
The Wall Street Journal published a variable rate based on the one-month London Interbank Offered Rate (“LIBOR”) on the twenty-fifth day, or the following business day, of the previous calendar month. The rate for the one-month LIBOR is 2 as of July 1, 2018. 10%. Variable interest rates range from 4. 07%-12. 04% (4. 07%-11. 94% APR) and will fluctuate over the course of the loan with changes in the LIBOR rate. It will also change depending on the terms that apply, the degree level attained, and whether a cosigner is present. Fixed interest rates range from 5. 25%-12. 19% (5. 25% – 12. 09% APR) based on the terms that apply, the degree level attained, and the presence of a cosigner. The lowest rates are for qualified applicants, require a 5-year repayment term, and include our Loyalty and Automatic Payment discounts of zero. They also require an application with a cosigner. According to the Loyalty Discount and Automatic Payment Discount disclosures, 25 percent each. Rates are subject to additional terms and conditions and may change at any time without prior notice. Only applications submitted after the change’s effective date will be affected by such modifications. Please take note that Citizens Bank is required by federal regulations to give disclosure information to every prospective borrower before they apply for a private student loan. Before agreeing to the loan’s terms and conditions, the borrower will be given both an application disclosure and an approval disclosure during the application process.
Education Refinance Loan Rate Disclosure:
The Wall Street Journal published a variable rate based on the one-month London Interbank Offered Rate (“LIBOR”) on the twenty-fifth day, or the following business day, of the previous calendar month. The rate for the one-month LIBOR is 2 as of July 1, 2018. 10%. Variable interest rates range from 2. 75%-8. 20% (2. 75%-8. 20% APR) and will fluctuate over the course of the borrower’s loan with changes in the LIBOR rate. It will also change depending on the terms that apply, the degree level attained, and whether a cosigner is present. Fixed interest rates range from 3. 50%-8. 69% (3. 50% – 8. 69% APR) based on the terms that apply, the degree level attained, and the presence of a cosigner. The lowest rates are for graduate-level applicants who are eligible, creditworthy, and have a 5-year repayment term. They also include our Loyalty discount and Automatic Payment discount of zero. According to the Loyalty and Automatic Payment Discount disclosures, 25 percent each The greater of 21 percent or the maximum variable rate for the Education Refinance Loan 00% or Prime Rate plus 9. 00%. Rates are subject to additional terms and conditions and may change at any time without prior notice. Only applications submitted after the change’s effective date will be affected by such modifications. Please take note that Citizens Bank is required by federal regulations to give disclosure information to every prospective borrower before they apply for a private student loan. Before agreeing to the terms and conditions of their loan, the borrower will be given both an Application Disclosure and an Approval Disclosure during the application process.
FAQ
What is the interest rate at PenFed?
Earn 2. 00% APY* on your savings. Not a problem, anyone can join. Apply now and we’ll create your membership during this application. Why Penfed?.
Can anyone get a PenFed mortgage?
The bottom line: PenFed Credit Union has an open membership charter, which allows anyone to join, a digital mortgage application, a variety of mortgages, and more. However, its website does not provide any sample mortgage rates.
What credit score does PenFed mortgage use?
PenFed requires a minimum score of 620 for mortgage borrowers. Consequently, don’t think you must wait until your score is in the 700s. It’s crucial to try and get a loan as soon as possible, especially when rates are low. Your potential interest rate could decrease as you advance into categories with better credit.
What credit score do you need for PenFed line of credit?
For a PenFed credit card, you must have a credit score of 750 or higher. That means applicants need excellent credit for approval. This applies to all PenFed credit cards. Your credit profile likely satisfies the card’s eligibility requirements if you receive a pre-approved mail or email offer from PenFed.