PenFed Credit Union HELOC review
What PenFed Credit Union's home equity line of credit offers, who it fits, and what to check, from the lender's own published terms.
Reviewed by Shawn Way, NMLS #1007298★ 4.9 from 111 reviewsUpdated
Disclosure: Shawn Way is a loan officer at West Capital Lending, Inc., which competes with these lenders. HELOCHQ isn't paid by any lender for reviews, and every fact below comes from the lender's own published terms.
Who should consider the PenFed Credit Union HELOC?
The PenFed Credit Union HELOC fits borrowers who want a credit union rate without a military connection, on lines of $25,000–$500,000. As of October 26, 2026, the variable rate is prime plus a margin, as low as 7.000% APR. PenFed pays most closing costs but charges a $99 annual fee, and lends up to 85% (80% in Texas and on condos).
On this page
Terms at a glance
| Type | Credit union |
|---|---|
| Rate | Variable, prime plus a margin; as low as 7.000% APR shown, with prime at 7.000% |
| Credit score | Not published by PenFed Credit Union as of October 26, 2026; ask the lender |
| Max borrowing | Up to 85% (80% in Texas and on condos) |
| Line size | $25,000–$500,000 |
| Terms | 10-year draw, 20-year repayment |
| Fees | PenFed pays most closing costs; $99 annual fee; appraisal for lines over $400,000 (about $550–$850); some state taxes paid by the member |
| Fixed-rate option | Lock up to three advances of $10,000 or more at a fixed rate for 240 months |
Source: PenFed Credit Union, checked October 26, 2026.
Use a free calculator, or get your HELOC rate from Shawn.
Who it fits
- Borrowers who want a credit union rate without a military connection (PenFed membership is open to the public)
- Lines of $25,000 to $500,000 on a primary or second home
- People who may want to lock part of the balance at a fixed rate
What to check
- The $99 annual fee applies every year of the line
- Minimum line is $25,000, too large for small needs
- Condos are limited to 80%, and co-ops, mobile homes and homes under major renovation aren't eligible
Our take
PenFed's HELOC is straightforward: a prime-based rate, a 10-year draw and 20-year repayment, and most closing costs paid by the credit union. The trade-off is a $99 annual fee, which on a line held for ten years adds about $1,000, and a $25,000 minimum that rules it out for small projects. Its fixed-rate advance locks are useful for anyone planning a large one-time draw, though each lock runs 240 months. Borrowers in Florida, Louisiana, Maryland, Minnesota, New York, Tennessee and Virginia should budget for state or local taxes PenFed doesn't cover.
Questions to ask PenFed Credit Union
- What margin over prime would I get, and is there a lifetime cap and floor on the variable rate?
- Which closing costs would I pay in my state?
- Will my property qualify for HELOC Express, or does it need a full appraisal?
- Is there a fee to close the line early?
If it doesn't fit
- A lender with no annual fee if you'll keep a zero balance most of the time
- Navy Federal if you're eligible and want a longer draw period
How to compare it
Put any offer side by side on margin over prime, total fees, draw terms and fixed-rate options. Prime is 7.00% as of October 28, 2026. A broker with access to more than 180 lenders can price several of these in one application; check your rate and compare them with a direct quote from PenFed Credit Union.
Head to head
Shawn Way is a loan officer at West Capital Lending, Inc., which may compete with the lenders reviewed here and may also arrange loans through some of them as a mortgage broker. Facts come from each lender's own website on the date shown and can change; confirm current terms with the lender.
Sources
Official sources behind this guide.
- What is the difference between a home equity loan and a HELOC? · Consumer Financial Protection Bureau
- What you should know about home equity lines of credit (booklet, PDF) · Consumer Financial Protection Bureau
- Bank Prime Loan Rate (DPRIME) · Federal Reserve Bank of St. Louis, FRED
- Regulation Z §1026.40: Requirements for home equity plans · Consumer Financial Protection Bureau