• Home Equity Line of Credit - Interest Only Option



    80% OR LESS LTV $10,000 - $400,000 Variable 4.00% APR
    (Prime + 0%)
    80.01 to 85% LTV $10,000 - $400,000 Variable 4.50% APR
    (Prime + .50%)

    1Prime Rate is 4.00% as of March 17, 2017. There is a minimum rate floor of 3.75% APR and a maximum rate of 18% APR.

    • Interest-Only Payment Option Available
    • Loans from $10,000 - $400,000
    • Available funds when you need them
    • Closing cost credit*
    • Low monthly payments
    • Perfect for college bills or other recurring expenses
    • Only pay on the funds that you use

    *Closing Cost Credit: PenFed will pay most closing costs associated with an interest only equity line of credit (ELOC) which includes: credit report, flood certification, settlement/closing, property ownership and encumbrances search, recording, city/county taxes, state taxes, property search and quick close. If an appraisal is required, the cost will be paid by the member, who is responsible for the fee whether or not the loan closes. The member is responsible for notary fees. Should this loan be paid off or closed within 24 months from the anniversary date of the loan closing, the member will be obligated to pay PenFed the full amount of the total closing cost for the loan. Other terms and conditions apply; call 1-800-970-7766 extension 6400 for details.

    See your tax advisor for details on tax deductibility of interest.

    PenFed Mortgage Aggregate: If PenFed holds the 1st mortgage plus any equity loans or lines of credit on the same collateral and the new loan exceeds $750,000 maximum combined loan-to-value (CLTV) ratio is 80%.

    Multiple Loans: Multiple Equity loans and ELOCs are available as long as the member and collateral qualify (except Texas). For Equity loans and ELOCs the total indebtedness cannot exceed $400,000 for all Equity and ELOCs 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)

    Property Insurance and Appraisals: Property insurance is required. A full appraisal is required for any loan greater than $250,000 and any loan amount with a loan-to-value (LTV) ratio over 80%. Should an appraisal be required, one will be ordered by PenFed at the member’s expense.

    Interest Only Equity Line of Credit: This Account has a Draw Period of 15 years, after which you will be required to repay any outstanding amount in one balloon payment. If only minimum payments are made, the loan balance will not decrease. This is a variable rate loan and the interest rate may increase after consummation of the loan. Typical closing costs range from $250 to $750 depending on the loan amount and county where property resides.

    Rates depend on the owner occupancy and LTV. The maximum LTV for condominiums is 70% in all states. The maximum owner occupied LTV is 85% and non-owner occupied LTV is 80%. We do not offer any of our non-owner occupied products in first lien position. The maximum CLTV in Texas is 80% with an ELOC amount not exceed 50% of market value, regardless of equity available. Additional restrictions apply in Texas. Non-owner occupied properties are Prime Rate + 1%, with a minimum floor rate of 4.75% and a maximum rate of 18%. ELOC minimum loan amount is $10,000 and maximum $400,000. Other terms and conditions apply; call 1-800-970-7766 extension 6400 for details.

    All rates and offers are as of May 2017 and subject to change without notice. To receive advertised product you must become a member of PenFed by opening a share (savings) account.

    We do business in accordance with the Federal Fair Housing Law and the Equal Credit Opportunity Act.