- Variable rate starting at 7.000% as of October 2026
- Lines from $25,000 to $500,000 with a 10-year draw
- PenFed pays most closing costs
- $99 annual fee on each anniversary
- PenFed membership required
| Product | Variable-rate HELOC from PenFed Credit Union, which is federally insured by the NCUA |
|---|---|
| Rate | “As low as” 7.000%, variable, as of October 2026. The APR is prime plus a margin and can change monthly. Prime was 7.000% as of September 21, 2026 |
| Line amount | $25,000 to $500,000 on an owner-occupied home or second home, with combined loan-to-value of 85% or less |
| Draw and repayment | 10 years to draw, then 20 years to repay |
| Fixed-rate option | Lock part of your balance at a fixed rate for 240 months, in chunks of at least $10,000 |
| Annual fee | $99 on each account anniversary |
| Closing costs | PenFed pays most of them. You pay any appraisal and taxes in some states |
| Minimum credit score | Not stated |
| Funding | As few as 15 days for borrowers in its HELOC Express program |
| Membership | Required. PenFed says everyone is eligible to apply |
| States | No list on the HELOC page. Texas has special terms |
| Trustpilot | 3.0 from 2,028 reviews for PenFed overall, read October 13, 2026 |
Our take: PenFed’s HELOC is a good deal on closing costs and an ordinary deal on rate. It starts at 7.000% variable, PenFed pays most of the closing costs, and the line can go from $25,000 to $500,000. The catches are a $99 annual fee and a rate that can change every month.
It fits you if you’re comfortable joining a credit union and want a big line without a big closing bill.
It doesn’t fit if you want one fixed rate on the whole balance. You can lock part of it, but with limits.
PenFed HELOC rates today
The page shows rates as low as 7.000%, and it lists the prime rate at 7.000% as of September 21, 2026. So the best advertised rate is prime with nothing on top. The margin you’d actually get isn’t published.
The rate is variable and can change every month. Pay attention to that one. If prime rises, your payment rises with it.
Here’s what it looks like. On $50,000 drawn, interest at 7.000% is about $292 a month. Pay only the minimum during the draw period and the balance doesn’t shrink. Once repayment starts, $50,000 over 20 years at 7.000% is about $388 a month. If the rate climbs to 10%, that repayment payment is about $483. That’s standard math on a fixed rate, not a PenFed quote, and your rate will move.
The fixed-rate option
You can lock a rate on part of what you owe. During the draw period you can have three fixed-rate advances at once, and you can add up to two new ones each calendar year. Each has to be at least $10,000 and has a 240-month term.
The locked rate is prime plus your margin plus an extra lock-in margin. It can’t go above 18%, and it can’t drop below 7.000% on a primary home or second home.
That’s useful if you draw a big chunk for a project and want to know the payment. It’s not a fixed-rate HELOC like the ones some lenders sell.
What it costs
This is where PenFed shines. It pays most of the closing costs: the credit report, flood certification, settlement, title search, recording and a few more. You pay city, county or state taxes if the home is in Florida, Louisiana, Maryland, Minnesota, New York, Tennessee or Virginia.
An appraisal isn’t covered. It’s required on every loan over $400,000, and PenFed puts the average at $550 to $850. You owe it whether or not the loan closes.
There’s also a $99 annual fee every year on the account anniversary. Over a 30-year line that adds up to real money, so count it.
One more line in the disclosure says closing costs range from $500 to $8,500 on a $500,000 line. Ask which ones you’d pay on your loan.
Who qualifies
You have to be a PenFed member, and the credit union says everyone is eligible to apply. PenFed doesn’t state a minimum credit score or an income test on the HELOC page.
The home has to be livable and not for sale. PenFed won’t lend on mobile homes, co-ops, time-shares, land only, properties with more than 4 units, commercial property or a home under major renovation. Condos top out at 80% combined loan-to-value, and Texas homes at 80%. Everywhere else it’s 85% on an owner-occupied home or second home.
Total PenFed equity borrowing can’t pass $500,000, counting every PenFed home equity loan and HELOC together.
Does PenFed offer a HELOC on an investment property?
The page doesn’t say it does. Its terms describe loans on an owner-occupied property or a second home, and the 7.000% floor on locked rates is written for primary residences and second homes. Commercial property and property used for commercial purposes are excluded.
Treat a rental as a no unless PenFed tells you otherwise. Call 866-441-0666, or read our guide to a HELOC on an investment property.
Pros and cons
Pros
- Rates start at 7.000% as of October 2026.
- PenFed pays most closing costs.
- Lines up to $500,000, with a 10-year draw and 20 years to repay.
- You can lock part of your balance at a fixed rate.
- Closing in as few as 15 days through HELOC Express.
Cons
- A $99 annual fee on each account anniversary.
- The rate is variable and can change monthly.
- You have to become a PenFed member.
- No minimum credit score or state list is published.
- Minimum payments during the draw period don’t reduce the balance.
- Investment properties aren’t listed as eligible.
Who should use it
It suits someone who wants a large line, would rather not pay closing costs and can live with a payment that changes. Joining the credit union is part of the deal.
It doesn’t suit a borrower who wants a fixed payment on the whole balance, or someone with a short horizon. A $99 annual fee on a line you use for six months stings.
How to apply
Start on PenFed’s HELOC page or call a Home Lending Advisor at 866-441-0666, Monday to Friday 8 a.m. to 8 p.m. ET and Saturday 9 a.m. to 5 p.m. ET.
The quickest route is the HELOC Express program, which can close in as few as 15 days. You have to send income, credit and property documents within three business days, and your home needs an acceptable automated valuation. Solar-financed homes don’t qualify.
PenFed vs. other HELOCs
- Achieve: a fixed APR from 6.10% to 15.17%, a 600 minimum credit score and closing costs of $750 to $10,304 in 31 states.
- Figure: initial APRs of 7.35% to 14.85% as of October 6, 2026, with lines up to $750,000 in 48 states and Washington, D.C.
- Spring EQ: a 640 FICO minimum and lines up to $500,000, with no rates posted on its site.
If a monthly payment is the sticking point, the guide to HEI vs HELOC explains the other route.
PenFed could make sense if you’re fine joining a credit union, want most closing costs covered and can live with a rate that changes.
FAQ
Rates start at 7.000% variable as of October 2026. The APR is prime plus a margin and can change monthly, and prime was 7.000% as of September 21, 2026.
Yes. The fee is $99 on each account anniversary.
$25,000 to $500,000 on an owner-occupied home or second home, with combined loan-to-value of 85% or less. Total PenFed equity borrowing is capped at $500,000.
Yes. You have to become a member to get the product, and PenFed says everyone is eligible to apply.
It pays most of them. You still owe any required appraisal, and taxes in Florida, Louisiana, Maryland, Minnesota, New York, Tennessee and Virginia.
Its terms cover owner-occupied homes and second homes, and investment property isn’t listed. Ask PenFed before you count on it.
Sources (5)
We use primary sources: each company’s own product pages and legal terms.
- PenFed Credit Union. Home Equity Line of Credit (HELOC) and Today’s Rates. penfed.org. Accessed October 13, 2026.
- PenFed Credit Union. Member Benefits. penfed.org. Accessed October 13, 2026.
- Trustpilot. PenFed reviews. trustpilot.com. Accessed October 13, 2026.
- Achieve. Home Equity Line of Credit (HELOC). achieve.com. Accessed October 13, 2026.
- Spring EQ. Fixed-Rate HELOC. springeq.com. Accessed October 13, 2026.
Take the next step.
See PenFed’s HELOC rate for yourself.
A variable rate starting at 7.000% and most closing costs paid, with a $99 annual fee.
Rates, terms and availability change. Check the current terms on PenFed’s site before you apply.