The special offer is available on both home purchases and refinancing, and runs through Sunday, September 9, 2012.
ALEXANDRIA, Va., Sept. 6, 2012 /PRNewswire-USNewswire/ -- PenFed (Pentagon Federal Credit Union) announced today that now through Sunday, September 9, 2012 only, the credit union is running special promotional rates on their 30-Year Fixed and 5/5 Adjustable Rate Mortgage (ARM) products.
Since this promotion is a limited-time only offer; PenFed invites their members, and eligible consumers alike, to leverage this environment before the rates go up again.
"As a customer driven non-profit organization, we're extremely happy to see our members be able to enjoy these incredibly low rates in their mortgage products," says Deborah Ames Naylor, Executive Vice President of Mortgages, PenFed. "It is a piece of good news in the current economic environment. Although we cannot exactly forecast for how long it will last, we hope that many households still can benefit from it."
30-Year Fixed Mortgage
The 30-year fixed mortgage promotion features a 3.375% interest rate with a 3.418% APR*. For example, for a $100,000 loan amount, the monthly payment amount would be approximately $442.10 each. This payment example does not include taxes or insurance; and actual payments may be greater.
5/5 Adjustable Rate Mortgage (ARM)
The 5/5 ARM adjusts only once every five years. For example, for a $450,000 loan amount the 2.750% initial interest rate and 2.667% APR**, and is subject to increase. Based on current market conditions, the monthly payment schedule would be:
- First 60 payments of approximately $1,837.09 each; and
- Next 300 payments, 2.625% interest rate and 2.667% APR**, payments of approximately $1,811.70 each.
This payment example does not include taxes or insurance; and actual payments may be greater.
PenFed offers a full range of mortgage lending products. When shopping for a mortgage, consumers will find that PenFed's mortgage programs offers some of the most innovative features and competitively priced interest rates available.
For more information about PenFed and 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 United States with over a million members and more than $15 billion in assets. PenFed provides an extensive selection of financial products to its members worldwide. Its core membership includes the Department of Defense, Army, Marine Corps, Navy, Air Force, and Coast Guard; Department of Homeland Security personnel, employees or volunteers of the American Red Cross, numerous military associations, and many others.
PenFed is federally insured by NCUA. Rates and offers as of September 6, 2012, for a limited time and subject to change without notice. Restrictions apply to existing PenFed mortgage borrowers. Other restrictions apply. For purchase transaction, the rate cannot be locked until a purchase agreement has been ratified. The application of discount points will be determined by 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.
*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 $135,000. The property is located in Alexandria, VA. 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.
** The information provided assumes the purpose of the loan is to purchase a property, with a loan amount of $450,000 and an estimated property value of $600,000. The property is located in Alexandria, VA. The property is an existing single family home and will be used as a primary residence. If an escrow account is required or requested, the actual monthly payment will also include amounts for real estate taxes and homeowner's insurance premiums. The rate lock period is 90 days and the assumed credit score is 740.
The interest rate is variable and can increase by no more than 2 percentage points every 5 years with a lifetime maximum adjustment of 5% (7.750% for this example). Since the index in the future is unknown, the first adjusted payment (300 payments shown) is based on the current index plus margin (fully indexed rate) as of September 6, 2012.
SOURCE Pentagon Federal Credit Union