PenFed HELOC Review 2025
Many or all of the products on this page are from partners who compensate us when you click to or take an action on their website, but this does not influence our evaluations or ratings. Our opinions are our own.
Why trust NerdWallet
- 50+ mortgage lenders reviewed and rated by our team of experts.
- 40+ years of combined experience covering mortgages and financial topics.
- Objective, comprehensive star rating system assessing 120+ categories and 5,000+ data points.
- Governed by NerdWallet's strict guidelines for editorial integrity.
Our Take
5.0
PenFed’s HELOC is a solid choice for borrowers who want a standard HELOC. It offers an 85% maximum CLTV, and has a 10-year draw period followed by a 20-year repayment period, which are all typical features. The main attraction from this easy-to-join credit union is a relatively fast closing, which can be as few as 15 days. However, borrowers will also pay an annual fee of $99, which is high.
Pros
-
Offers a fixed-rate repayment option.
-
No initial draw requirement.
-
Average time to close is faster than many lenders surveyed by NerdWallet.
Cons
-
Annual fee of $99.
-
Not a top-25 HELOC lender by loan volume.
Lender | Max. loan amount | Max LTV | Min. credit score | |
|---|---|---|---|---|
 Visit Lenderat Figure at Figure | $750,000 | 85% | 600 | Visit Lenderat Figure at Figure |
 4.5 Visit Lenderat Achieve at Achieve | $300,000 | 85% | 600 | Visit Lenderat Achieve at Achieve |
 4.0 Visit Lenderat Upstart Mortgage LLC at Upstart Mortgage LLC | $250,000 | 95% | 600 | Visit Lenderat Upstart Mortgage LLC at Upstart Mortgage LLC |
 Visit Lenderat New American Funding at New American Funding | $750,000 | 90% | 620 | Visit Lenderat New American Funding at New American Funding |
 Visit Lenderat NBKC at NBKC | $250,000 | 85% | 720 | Visit Lenderat NBKC at NBKC |
Full Review
💲PenFed HELOC Rates
HELOC rates are determined by two things. The first is the prime rate, which is what banks pay to borrow from one another. The second part is a margin, which the lender calculates based on your financial qualifications (including your credit score, existing debts and income). The prime rate plus your margin equals your HELOC rate offer.
Current prime rate | Prime rate last week | Prime rate in the past year — low | Prime rate in the past year — high |
|---|---|---|---|
7% | 7% | 7% | 8% |
PenFed’s lowest available HELOC rates are posted online, which is an introductory rate below prime.
👍 Reasons to get a PenFed HELOC
The main benefit of a PenFed HELOC is its relatively fast closing, which can be in as few as 15 days. This is more than a week faster than the average time to close in 2025 among lenders surveyed by NerdWallet, which is 24 days.
PenFed’s HELOC offers a fixed-rate repayment option and no initial draw requirements (except for Texas borrowers). HELOCs are available for second homes.
» MORE: Best HELOC lenders
🤔 Reasons why PenFed’s HELOC gives us pause
Borrowers must pay an annual fee of $99, higher than the $50 (or $0) charged by many lenders.
PenFed is not a major player in the HELOC space, which may or may not be important to you as a borrower.
While PenFed’s lowest HELOC rate is posted online, it’s unlikely to be indicative of your actual rate offer. You’ll have to compare personalized offers to make an informed choice.
How to Apply | Availability |
Online 🧑💻 | ✅ |
Over the phone 📞 | ✅ |
Mobile app 📶 | 🚫 |
In person 🏦 | ✅ |
You can contact PenFed customer service over the phone, in person at a branch or via the live chat feature on the lender’s site.
🛒 Alternatives to a PenFed HELOC
Wondering if another lender or product might be a better fit? It’s worth it to shop around to learn more about your options.
HELOC shoppers looking for a fast closing may be a good fit for Figure, which offers funding in as few as five days. Similarly, Citizens Bank offers closing in as few as seven days.
Alternatively, if you want shoppable HELOC rates and options for rate discounts, Bank of America might be worth exploring.
A HELOC isn’t your only option
You can also explore products outside of HELOCs. Alternatives to home equity lines of credit include a home equity loan, which offers a lump sum with a fixed rate, or a cash-out refinance, which replaces your existing mortgage with a larger loan.
In addition to HELOCs, PenFed offers cash-out refinancing.
Borrow from your home’s equity
NerdWallet’s HELOC star ratings are independently researched and developed by the editorial team based on the following factors: HELOC lending volume, maximum combined loan-to-value ratio, whether a fixed-rate option is available, initial draw requirements, flexibility of draw and repayment terms, average time to close, interest rate transparency, length of any introductory term below the prime rate, lender fees, availability for second homes, application availability and customer support options. Lenders can receive bonus points for offering options for HELOC rate discounts. A recent regulatory action against a lender may affect its HELOC star rating.
