PenFed Credit Union Mortgage Review 2023

How Bankrate scored PenFed Credit Union

• Affordability: PenFed Credit Union doesn’t charge fees on mortgages, which saves you some money at closing. You won’t learn what rate you qualify for until you connect with the credit union directly, however.

• Availability: You’ll need to be a member of the credit union to apply for a mortgage, and some of its loan products have more stringent requirements compared to those of other lenders.

• Borrower experience: If you’re in need of assistance with a mortgage (or any other product the credit union offers), PenFed has a wide range of business hours seven days a week.

• Methodology

  Bankrate's expert editorial team collects lender information through a variety of methods. We contact lenders directly, and we also turn to regulatory filings and to assessments by third parties. Our research takes into account three main factors – affordability, availability and borrower experience.

  Bankrate's reporters and editors have decades of experience covering the mortgage industry. They're skilled at gathering information through interviews and by scouring regulatory filings. Bankrate evaluates more than 85 lenders for factors relating to affordability, availability and customer experience, assigning each a Bankrate Score out of five stars. Here's how we assess each of the categories:

  • Affordability. Loan cost is a deciding factor for many borrowers. We look at two metrics: 1) a lender's lowest advertised annual percentage rate (APR) based on Bankrate's sample scenario, which assumes a 740 or higher credit score and a 20 percent down payment, among other factors and 2) established-customer discounts or incentive pricing, when applicable.
  • Availability. Another factor is how quickly your loan application will be approved, and how many loan programs the lender offers. So we evaluate approval and closing timelines and diversity of loan products.
  • Customer experience. Finally, we delve into what it's like to deal with the lender as a consumer. We look at the lender's application process and availability of customer service support. We also consider the results of J.D. Power's 2022 Mortgage Origination Satisfaction Survey.

  Bankrate's editorial team confirms the accuracy of data at the time of publication. Our team is dedicated to maintaining the timeliness of information – the mortgage industry is changing constantly, so we regularly revisit these reviews to update them.

  Bankrate's methodology page spells out our rating process in greater detail.

  Our editorial team confirms the accuracy of data at the time of publication and is dedicated to maintaining the timeliness of information.

Affordability: 3/5

PenFed Credit Union doesn’t display daily rates online for new purchases or refinances; you’ll need to fill out a form with your personal information to get a customized rate quote. For HELOCs, however, the credit union does share variable rates based on loan-to-value (LTV) ratio and amount borrowed. Notably, the credit union doesn’t charge any lender fees.

Availability: 4.5/5

PenFed Credit Union operates across the U.S., but you’ll need to become a member to take advantage of its products or services. These include conventional mortgages (both conforming and non-conforming), FHA loans and VA loans. To become a member, you’ll need to establish a savings account with at least a $5 balance.

Borrower experience: 5/5

PenFed Credit Union has served its members for decades. It isn’t accredited by the Better Business Bureau, but has received an A+ rating from the organization, albeit along with some negative feedback on the BBB website. On Trustpilot, though, PenFed has received high marks. When evaluating mortgage lenders and testimonials, take into account both the positive and negative experiences.

You can apply for preapproval with PenFed Credit Union online, or you can submit a call-back request to talk to a loan officer. Additionally, you can share more information for a customized rate quote. The PenFed website includes a few calculators to help borrowers estimate monthly payments, along with a knowledge center of educational content for homebuyers.

Refinancing with PenFed Credit Union

You can refinance your mortgage with PenFed Credit Union, but the credit union doesn’t post refi rates online. The credit union can be an especially good option for military service members, veterans and eligible spouses, since it covers all closing costs on VA Interest Rate Reduction Refinance Loans (IRRRLs).