PenFed 5 Year Adjustable Rate Mortgage 3.718% APR

Pentagon Federal Credit Union is offering a 5 year adjustable rate mortgage as low as 3.718 APR. We were quoted this rate for a 5 year ARM, with 30 year amortization, on a conforming loan of $400,000 with .375 points, for a purchase with 20 percent down in Fairfield, Connecticut.

The monthly payment on this loan is $1,967.76, this does not includes taxes and insurance. The total estimated closing costs for this loan is $4,689.66.

Here is a breakdown of the closing costs:

The mortgage quote we were given is for a single family home, with a 20 percent downpayment in Fairfield, Connecticut. We were also quoted a 5 year ARM with a 40 year amortization schedule, the rate on this loan was 3.73% and the monthly payments were lowered to $1,798.25 because of the 40 year amortization. You pay less monthly but you will pay more interest in the long run. Mortgage rates, terms and closing costs will differ depending on the state, cost and your credit score.

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.