Best Credit Union for Mortgages: Pentagon Federal Credit Union (PenFed)
Courtesy of PenFed
Pentagon Federal Credit Union, better known as PenFed, is a Washington area-based credit union with a military focus, but you don’t need to be in Washington or a part of the military to join. Like many other credit unions, a small donation to a partner charity qualifies you to open a new account. Once you do, you have some great options for mortgages and other loans, including highly competitive rates and a somewhat unique mortgage option.
One unique option is the 15/15 ARM. This adjustable rate mortgage locks in your low-interest rate for 15 years before adjusting to market rates. As a huge number of people tend to move within 15 years, it is a great way to lock in the low cost of an ARM without the risk of a short 3, 5 or seven-year ARM term.
PenFed offers competitive checking and savings, and some credit card options with far better rewards than most credit unions. This combination of factors makes it worth looking into.