PenFed Home Equity Line of Credit 3.25 Percent
PenFed also offers a 5/5 home equity line of credit. The rate on this loan only changes once every 5 years. The initial rate is higher on this line of credit than the variable line of credit. Currently the APR is 4.51 percent.
The 3.25 percent rate on the variable line and the 4.51 percent rate on the 5/5 if for an owner occupied home (you must live in the home). PenFed also offers loans for non-owned occupied homes. The rates for a line of credit on these homes are higher. Currently the variable home equity line of credit APR is 4.25 percent and the 5/5 home equity line of credit rates is 6.03 percent.
The loan-to-value on the owner occupied home is 80 percent and the loan-to-value on the non-owned occupied home is 70 percent. Loan-to-value (LTV) means the total amount owned on a home cannot exceed a certain percentage. Until recently banks and lending institutions were handing out loans up to 100 percent LTV or even higher, but they are being a lot more conservative in lending because home prices are falling these days. Mortgage rates have also come down more slowly than interest rates have.
Some features of the PenFed variable home equity line of credit
Some features of the PenFed 5/5 home equity line of credit
Home equity line of credit rates are lower than home equity loan rates. Another good thing about getting a HELOC instead of a home equity loan is with a equity line of credit you are able to withdraw only the amount you need at the time and only pay interest on the amount you use. With a home equity loan you take the entire loan amount at closing and pay interest on the entire amount from day one.
PenFed is a credit union so you will have to join PenFed to qualify for these great rates. There is certain criteria you have to meet to be eligible to join. Visit their website, Pedfed.org, to find out more
Banking & Finance InformationPersonal Finance
By visiting this site, third parties may place cookies on users’ browsers for targeted advertising purposes. This data may be used by third parties to target digital advertising on other sites and networks based off of your activity. MonitorBankRates.com is an advertising-supported web publisher and comparison rate service. MonitorBankRates.com is compensated for placement of sponsored products when ads are clicked. This compensation may impact how and where products appear on this website. Not all companies or their products are listed.