PenFed Mortgage Review | Ascension


Best benefits

Equivalent to cash offer

PenFed offers a mortgage program called the Power Buyer Loan. This is a fully subscribed pre-approval that results in a 60 day loan commitment, provided that none of your information changes significantly before closing. There is also a selling element that helps you free up assets so you don’t have to make offers that are dependent on the sale of your current home. PenFed allows you to leverage equity to make a cash offer on the home you want to buy. The Power Buyer loan comes with a 60-day interest rate lock. The rate freeze can be extended for an additional 30 days for a fee.

Low down payment home loan options

PenFed offers several ways to get a mortgage with little or no down payment. Those who qualify for a VA loan do not need to make a down payment at all. Low to moderate income borrowers can get a mortgage with a 3% down payment. Other borrowers can get a mortgage with 5% down.

VA loan experts

PenFed has decades of experience serving the global military community.

Benefits of membership

As a member of PenFed Credit Union, you will be able to enjoy all the benefits they offer. Here are some examples :

  • Car buying service with free Carfax and TrueCar reports
  • Auto insurance discounts
  • Car rental discounts
  • Auto maintenance discounts
  • Discounts on tax preparation software
  • Home insurance discount
  • Discounts on mobile phone services

Quote tool and very low rates

PenFed is an industry leader in low mortgage rates. If you’re ready to enter your email address, you can use PenFed’s handy pricing tool to find out what rate you might be entitled to based on the information you provide. You can use this tool to play around with your credit score and your down payment amount to see how these details might affect your eligibility. This can help you decide whether it’s worth waiting a few months while you try to improve those numbers before you apply.

Lock rate

PenFed’s pre-approval comes with a 60-day rate freeze. If you need more time, you can extend the 30-day rate lockout once (for a fee).

Financial motivations

For borrowers who get a loan to buy a home, PenFed offers $ 500 to $ 2,500, depending on the loan amount, in lender credits. Not all loans are eligible, so be sure to educate yourself about this before you apply.

At the time of our checking, PenFed was also offering a $ 500 closing credit to all new refinance applicants. This offer may expire, but other bonus offers appear from time to time.

What could be improved

Members only

You have to be a member of PenFed to get a mortgage there. This means that you will at least have to maintain a savings account with the credit union. It could be inconvenient if you weren’t looking to open a new bank account. On the bright side, however, the minimum opening balance is only $ 5 and there are no monthly maintenance fees.

No free float

PenFed’s rate foreclosure does not float down. If rates drop before your loan closes, you will need to pay a fee to get the lower rate.

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