18 Jan PenFed Credit Union Mortgage Review
In terms of conventional loans or VA loans, Pentagon Federal Credit Union is a solid choice because it offers up to $2,500 in lender credit. If you require a lender who specializes in providing services to military families and members, PenFed may be the lender for you.
In this article, we’ll cover a PenFed Mortgage review so you know about their rates, policies, and services in detail.
Related Article: VA Loan Calculator
About PenFed Credit Union
Founded in 1935, PenFed Credit Union is one of the oldest credit unions in the country. Its headquarters are in McLean, Va., and its full name is Pentagon Federal Credit Union. The organization’s membership was originally open only to members with military or government connections. However, this credit union is now open to members of all backgrounds.
PenFed Credit Union has over 2 million members and over $25 billion in assets. Members can access more than 50 branches throughout the United States and on military bases in Japan, Guam, and Puerto Rico.
Related Article: Best VA Loan Lenders for Active Military & Veterans 2021
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PenFed Credit Union Home Loan Types and Rates
PennFed offers a variety of loan types for home purchases and refinancing, including 15- and 30-year fixed-rate loan options and adjustable-rate mortgages.
As well as conforming loans, jumbo loans and VA loans are also available and funded by the Department of Veteran Affairs.
VA loans offer highly competitive interest rates because of their government-backed nature. Qualified veterans are eligible for VA mortgages backed by the Veterans Administration. As a mortgagee, if you choose to purchase a VA loan through Pennfed, you do not have to make any down payment or participate in private mortgage insurance.
Conventional loans are mortgages governed by the Federal Finance Housing Agency (FHFA) and are backed by either Fannie Mae or Freddie Mac. A conventional fixed mortgage is for borrowers with good credit scores and a low debit score seeking a low down payment loan and good credit.
Jumbo loans are also referred to as non-conforming loans because they do not adhere to the government-backed Fannie Mae or Freddie Mac rules. The maximum limit can vary depending on the location. To qualify for a Jumbo loan of over $548,250 in 2021, you’ll need to meet those requirements. If you are a member of Penfed Credit Union, you can have a larger loan for your home, and it is preferred by those who have a good credit score and a high income.
Home Equity Line of Credit – HELOC
A HELOC is a revolving line of credit based on the equity in your home. It is usually used to secure short-term loans and make small purchases, and the funds can be accessed over your term if necessary. With PenFed, you can take advantage of low-interest rates on HELOCs that are as low as 0.99% APR for the first six months and rates as low as 3.75% APR.
An adjustable-rate mortgage (ARM) may initially have a lower interest rate than a conforming loan. With PenFed Credit Union, the ARM rate may adjust up or down over time based on market conditions. This loan is best for those with a low income who need smaller initial payments.
PenFed Mortgage Review Pros and Cons
Pros of PenFed Credit Union
- Provides a wide range of mortgage options, including low-down-payment options for first-time homebuyers.
- In the case of purchase mortgages, lenders offer a credit based on the loan amount.
- HSBC appears to have lower mortgage rates and fees than those of other lending institutions due to recent data.
Cons of PenFed Credit Union
- To refinance a mortgage, the lender credit option is not available.
- This company does not offer FHA and home improvement loans.
PenFed Credit Union Application Process
A PenFed membership application is available online for Regular Share account holders (a standard share savings account) and Premium Online Savings account holders (an online savings account that may earn higher dividends). To learn more about PenFed’s member benefits and services, visit PenFed Membership Corner.
To apply for PenFed Membership:
- You can join PenFed.org when you are ready.
- You will need to decide which membership account you would like to apply for Regular Share account or Premium Online Savings account.
- Complete your membership application by following the system prompts.
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PenFed Credit Union Refinancing
The Pentagon Federal Credit Union can refinance their student loans through the credit union. There is one primary reason that PenFed stands out from other student loans to refinance companies.
The PennFed lender also offers you the option to release your co-signer after 12 on-time payments. PenFed is a good option if you cannot qualify for a refinance on your own because they offer that service much faster than other lenders. The mortgage co-signers are not eligible for this, as they are spouses of the borrower.
PenFed Credit Union Alternatives
USAA: United Services Automobile Association
United Services Automobile Association (USAA) is a Fortune 500 financial services company headquartered in San Antonio, Texas, which operates a reciprocal inter-insurance company regulated by the Texas Department of Insurance. The firm offers mortgages through USAA Federal Savings Bank and specializes in VA loans for military-connected borrowers.
Navy Federal Credit Union
Over 10 million members, including active service members, veterans, and Department of Defense employees, are served by Navy Federal Credit Union. This not-for-profit credit union was founded in 1933 in Vienna, Virginia, and is headquartered there. It offers a wide range of services, from credit cards to car loans. By far, Navy Federal is the largest U.S. credit union by assets ($131 billion), branch network (342), and several numbers of open accounts (20 million).
Bank of America
Bank of America offers many loan options, easily viewed rates, extensive online capabilities, and competitive rates and fees. It serves roughly 66 million customers in all 50 states. The company offers conventional FHA, VA, and jumbo loans in addition to home equity lines of credit and refinance options as well as traditional services such as mortgage appraisals and loan modifications.
Related Article: Can Veterans Build a New Home With a VA Construction Loan?
PenFed Credit Union Transparency
PenFed does not publish sample mortgage rates on its website for the various types of loans it offers. Online personalized rates based on location, credit score, or other factors are available only once you provide contact information. Still, for those who have ties to the government or the military, PenFed is a solid banking option. It offers solid APRs on most accounts, low fees, and low minimum deposits on almost all its accounts.