Welcome!

News Feed Item

PenFed Invents New Adjustable Rate Mortgage

The newly launched mortgage program is an innovative 15/15 Adjustable Rate Mortgage (ARM). The mortgage will be available for a limited time on home purchases and refinances up to $750,000; PenFed believes it is the first mortgage of its kind.

ALEXANDRIA, Va., Feb. 18, 2014 /PRNewswire/ -- Homebuyers seeking an innovative mortgage, coupled with an incredible low rate, should take note. PenFed (Pentagon Federal Credit Union) today announced the launch of its 15/15 Adjustable Rate Mortgage (ARM); adding a brand new form of mortgage to its portfolio of innovative loan programs.

(Photo: http://photos.prnewswire.com/prnh/20140218/DC66062)

(Logo: http://photos.prnewswire.com/prnh/20140107/DC42163LOGO-b)

"Our promotional 15/15 ARM is a new concept for the marketplace and we are very excited to offer this new mortgage," said Debbie Ames Naylor, executive vice president of mortgages at PenFed. "We've featured a 5/5 ARM in our lending program for several years now and we consider that program to be one of our flagship products. Our new 15/15 ARM satisfies a real need for more beneficial, modern loans types. We think it will be just as influential."

The 15/15 ARM provides two exciting benefits. First, it provides the stability of very long periods, not found in most ARM mortgages. Additionally, the consumer can access incredible rates now, comparable with any ARM.

"We believe this 15/15 ARM will be the ideal mortgage for nearly anyone in the marketplace. It's the best of both worlds," Ames Naylor said. "It's meant to be a mortgage for how families actually live their lives. Combined with our 5/5 ARM, we're creating mortgages that fit to the real world of today's modern lifestyles. And since PenFed has some of the best rates in the nation already, this is a clear win for homebuyers."

The newly launched promotional program will be available for a limited time on home purchases and refinances up to $750,000; and includes additional features such as a 60-day rate lock and instant online pre-qualification.

Promotional ARM Highlights:

The PenFed 15/15 ARM features an interest rate that adjusts only once during the life of the 30 year loan. While the interest rate is fixed for the first 15 years, the monthly payment is still calculated over a 30 year amortization schedule, with no negative amortization occurring.

Payment Example: For a $100,000 loan amount, the initial interest rate is 3.750%, with a 3.855% APR*. Based on current market conditions, the monthly payment schedule would be:

  • First 180 payments at 3.855% APR* of approximately $463.12 each; and
  • Next 180 payments at 3.625% interest rate and 3.855% APR*, payments of approximately $459.17 each.

This payment example does not include taxes or insurance; and actual payments may be greater.

Why should you consider PenFed for your mortgage financing?

A fiscally sound credit union that's been lending for over 75 years, PenFed offers a full-range of mortgage lending products with some of the most innovative features and competitively priced interest rates available.

For more information about PenFed or to apply for a mortgage, visit PenFed.org or call 800-247-5626.

About PenFed (Pentagon Federal Credit Union):

Established in 1935, PenFed is one of the largest credit unions in the country serving over 1.2 million members worldwide; with more than $16 billion in assets. Its longstanding mission has been to provide superior financial services, responsive to members' needs in a cost effective manner. PenFed offers market leading mortgages, automobile loans, credit cards, checking, and a wide-range of other financial services with its members' interests always in mind. Serving a diverse population, there are many ways to become a PenFed member; including numerous association members and employee groups. PenFed is federally insured by the National Credit Union Administration, does business in accordance with the Federal Fair Housing Law and the Equal Credit Opportunity Act, and is an equal housing lender.

*Disclosures: 15/15 ARM: Limited time offer available on purchases and refinances up to $750,000. The rate is variable and can increase. Not available for applications without a property address (pre-purchase). The initial rate is fixed for 15 years (180 months). When the rate adjusts, your new rate will be the then current 10 year US Treasury Bill plus a margin of one percentage (1.000%) point, rounding to the nearest one-eighth (0.125%). The new rate cannot exceed six percent (6.000%) above the initial rate or cannot be lower than the floor rate of one percent (1%).

15/15 ARM Mortgage Payment Example: The information provided assumes the purpose of the loan is to purchase a property, with a loan amount of $100,000 and an estimated property value of $125,000. The property is located in Alexandria, VA and is within Fairfax County. The property is an existing single family home and will be used as a primary residence. An escrow (impound) account is required. The rate lock period is 60 days and the assumed credit score is 740. At a 3.750% interest rate, the APR for this loan type is 3.855%, other rates and terms available. The monthly payment schedule would be $463.12 for the first 180 months at an interest rate of 3.750%. Actual monthly payments will be higher and will also include amounts for real estate taxes and homeowner's insurance premiums.

NOTE: A 1% origination fee applies to this loan. The origination fee may be waived by adding a 0.25% to the selected rate. The application of points will be determined by the loan to value (LTV) ratio combined with certain representative credit scores. Additional points also apply to certain cash-out refinance transactions, certain condominium transactions, and some transactions with subordinate financing that will reflect on the Good Faith Estimate and/or Settlement Statement. Points are the responsibility of the borrower and not covered in promotions.

Investment properties not eligible for offer.

All Mortgage Programs: The application of points will be determined by the loan-to- value (LTV) ratio combined with certain representative credit scores. Points also apply to certain cash-out refinance transactions, certain condominium transactions, and some transactions with subordinate financing.

For a purchase transaction, the rate cannot be locked until PenFed receives a ratified sales contract executed by all required parties.

The applicant is responsible for the following fees and costs at the time of closing (except 5/5 ARM): Origination fee (waived for 5/5 ARM loan program), appraisal fee, tax service fee, CLO access fee, title fees, transfer tax fees, credit report fee, flood cert fee, recording fee, survey if required and work verification fee, escrow reserves and interest due until first payment, other cost may be included due to program specific circumstances. This is not intended to be an all-inclusive list.

Escrows will only be waived if LTV is 80% or less in CA, OR, DC, VT & NY; 75% in all other states.

Borrowers are required to have sufficient reserve assets available to cover 6 months full payments including principal, interest, homeowner's insurance, property taxes and homeowner associated dues and/or mortgage insurance, if applicable. For non-primary residences, we require 12 months of reserve assets.

If a loan is withdrawn, the applicant may not reapply for at least 90 days from the date the application was withdrawn.

Conforming Mortgages: For loan amounts from $25,000 to $417,000. The maximum loan-to value (LTV) is 80% and the maximum combined loan- to-value (CLTV) is 95%.  The maximum LTV and CLTV for condominiums is 80%.

Jumbo Mortgages: For loan amounts above $417,000 to $750,000. The maximum loan-to-value (LTV) is 80% and the maximum combined loan-to-value (CLTV) is 95%. The maximum LTV and CLTV for condominiums is 80%.

All above disclosures apply to non-Veteran's Administration (VA) loans. VA loans have different guidelines and eligibility requirements.

All rates and offers are as of February 17, 2014 and are subject to change without notice. Restrictions apply to existing PenFed mortgage borrowers. Other restrictions may apply. To receive any advertised product you must become a member of PenFed by opening a share (savings) account. Federally insured by the NCUA. We do business in accordance with the Federal Fair Housing Law and the Equal Credit Opportunity Act.

SOURCE PenFed

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Redis is not only the fastest database, but it is the most popular among the new wave of databases running in containers. Redis speeds up just about every data interaction between your users or operational systems. In his session at 19th Cloud Expo, Dave Nielsen, Developer Advocate, Redis Labs, will share the functions and data structures used to solve everyday use cases that are driving Redis' popularity.
Enterprise networks are complex. Moreover, they were designed and deployed to meet a specific set of business requirements at a specific point in time. But, the adoption of cloud services, new business applications and intensifying security policies, among other factors, require IT organizations to continuously deploy configuration changes. Therefore, enterprises are looking for better ways to automate the management of their networks while still leveraging existing capabilities, optimizing perf...
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
SYS-CON Events announced today the Kubernetes and Google Container Engine Workshop, being held November 3, 2016, in conjunction with @DevOpsSummit at 19th Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA. This workshop led by Sebastian Scheele introduces participants to Kubernetes and Google Container Engine (GKE). Through a combination of instructor-led presentations, demonstrations, and hands-on labs, students learn the key concepts and practices for deploying and maintainin...
Ovum, a leading technology analyst firm, has published an in-depth report, Ovum Decision Matrix: Selecting a DevOps Release Management Solution, 2016–17. The report focuses on the automation aspects of DevOps, Release Management and compares solutions from the leading vendors.
"Avere Systems is a hybrid cloud solution provider. We have customers that want to use cloud storage and we have customers that want to take advantage of cloud compute," explained Rebecca Thompson, VP of Marketing at Avere Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
"We formed Formation several years ago to really address the need for bring complete modernization and software-defined storage to the more classic private cloud marketplace," stated Mark Lewis, Chairman and CEO of Formation Data Systems, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Large scale deployments present unique planning challenges, system commissioning hurdles between IT and OT and demand careful system hand-off orchestration. In his session at @ThingsExpo, Jeff Smith, Senior Director and a founding member of Incenergy, will discuss some of the key tactics to ensure delivery success based on his experience of the last two years deploying Industrial IoT systems across four continents.
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and busin...
There will be new vendors providing applications, middleware, and connected devices to support the thriving IoT ecosystem. This essentially means that electronic device manufacturers will also be in the software business. Many will be new to building embedded software or robust software. This creates an increased importance on software quality, particularly within the Industrial Internet of Things where business-critical applications are becoming dependent on products controlled by software. Qua...
SYS-CON Events has announced today that Roger Strukhoff has been named conference chair of Cloud Expo and @ThingsExpo 2016 Silicon Valley. The 19th Cloud Expo and 6th @ThingsExpo will take place on November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. "The Internet of Things brings trillions of dollars of opportunity to developers and enterprise IT, no matter how you measure it," stated Roger Strukhoff. "More importantly, it leverages the power of devices and the Interne...
Machine Learning helps make complex systems more efficient. By applying advanced Machine Learning techniques such as Cognitive Fingerprinting, wind project operators can utilize these tools to learn from collected data, detect regular patterns, and optimize their own operations. In his session at 18th Cloud Expo, Stuart Gillen, Director of Business Development at SparkCognition, discussed how research has demonstrated the value of Machine Learning in delivering next generation analytics to imp...
Most organizations prioritize data security only after their data has already been compromised. Proactive prevention is important, but how can you accomplish that on a small budget? Learn how the cloud, combined with a defense and in-depth approach, creates efficiencies by transferring and assigning risk. Security requires a multi-defense approach, and an in-house team may only be able to cherry pick from the essential components. In his session at 19th Cloud Expo, Vlad Friedman, CEO/Founder o...
"We host and fully manage cloud data services, whether we store, the data, move the data, or run analytics on the data," stated Kamal Shannak, Senior Development Manager, Cloud Data Services, IBM, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
As organizations shift towards IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. Commvault can ensure protection, access and E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his general session at 18th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Part...