What do you know about the Pentagon home equity line of credit? The pentagon federal credit union or PenFed was established back in 1935 and the union currently serves over 2 million members.
PenFed as a financial institution is operational in all 50 states of the United States of America and also the District of Columbia. The institution primarily serves members of the military community including government employees.
Pentagon Home Equity Line Of Credit
It might however interest you to know that you can also join even though the above-mentioned perks do not apply to you. And membership in the union can also give you access and several benefits and this is including competitive home equity lines of credit or HELOCs.
The Pentagon home equity line of credit offers users a 0.99% introductory APR for its HELOCs and a low 3.75% minimum APR after the initial six months. If you wish to be a PenFed credit union member and you have a credit score of 660 minimum, you should consider PenFed for your home equity borrowing needs.
Benefits of the Pentagon Home Equity Line Of Credit
Before you join or become a PenFed member, here are some benefits that you should know about. This union and financial body offer competitive rates, a fixed rate option, and flexible borrowing limits.
HELOC rates offered by this body go as low as 3.75%. Normally you should know that the average HELOC rate that is similar among all lenders in the industry is between 4 and 5 percent. The organization also offers an introductory APR of 0.99% for the initial six months of applying.
Do you know that you can also lock in a fixed APR on some of your HELOC balance or even all of it during the draw period of time? Yes, you can. If the rates are low and you want a more predictable payment schedule for your draws, this is a great option if not the best.
In regards to flexible borrowing limits, the maximum loan amount and the combined loan-to-value ratio can vary by loan. However, you will have the flexibility option to get as low as $25,000 or even as much as a million dollars with CLTs as high as 70%. For CLTs of 85.01 to 90% on the other hand, the maximum amount is $500,000.
These are just about some of the many benefits of the Pentagon home equity line of credit. The program, however, does come with a few drawbacks of its own and they include a lack of transparency and an early termination penalty. You also have to be a manner of the union in order to apply.
Types of Fees Charged
The Pentagon home equity line of credit or PenFed does not charge any lender fees at closing for its HELOCs. But you may be on the hook for taxes, appraisal fees it is required, and notary fees, and if you close off your loan within 36 months of closing, you will have to reimburse closing costs.
You should also know that you will be charged a $99 annual fee that can easily be waived if you pay $99 in interest within the next 12-month period. These are the major fees to be paid with his program. Other regular fees you should also know about are a return check fee of $20, an over credit limit fee of $10, and a late fee of 5 percent.
How to Get Started
If you are thinking of getting a HELOC from PenFed then it is advisable that you compare what it has to offer with other home equity lenders. The application procedure is easy and you can start with it online. Note that you will also have to apply for membership. Becoming a member requires you to maintain a $5 savings account with the institution.
