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PenFed HELOC Review 2026
Last updated on May 8, 2026
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- 50+ mortgage lenders reviewed and rated by our team of experts.
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Our Take
4.0
HELOCs
NerdWallet rating
The Nerdy headline:
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. However, borrowers will also pay an annual fee of $99, which is high.
Jump to:Full Review
PenFed: NMLS#401822
National / regional
National
Max LTV
85%
Min. credit score
N/A
Loan types and products
Purchase, Refinance, Home Equity, Jumbo, Fixed, Adjustable, VA, FHA
Pros
- Offers a fixed-rate repayment option.Â
- No initial draw requirement.
Cons
- Annual fee of $99.Â
- 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 |
 Visit Lenderat Achieve at Achieve | $500,000 | 85% | 600 | Visit Lenderat Achieve at Achieve |
 Visit Lenderat New American Funding at New American Funding | $750,000 | 90% | 600 | Visit Lenderat New American Funding at New American Funding |
 Visit Lenderat NBKC at NBKC | $250,000 | 85% | 720 | Visit Lenderat NBKC at NBKC |
 Visit Lenderat Better at Better | $750,000 | 90% | 620 | Visit Lenderat Better at Better |
Full Review
đź’˛PenFed HELOC Rates
HELOC rates are determined by two things. The first is the prime rate, a benchmark interest rate that banks set to determine the lowest rate offered to their most creditworthy customers. The prime rate is generally set around 3% above the federal funds rate.Â
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 — last changed Dec. 2025 | Prime rate last week | Prime rate in the past year — low | Prime rate in the past year — high | Projected median prime rate for 2026 |
|---|---|---|---|---|
6.75% | 6.75% | 6.75% | 7.5% | 6.4% |
PenFed’s lowest available HELOC rates are posted online, which is an introductory rate below prime.
đź‘Ť Reasons to get a PenFed HELOC
PenFed’s HELOC offers added flexibility with a fixed-rate repayment option, giving borrowers more predictable payments if rates rise. It also doesn’t require an initial draw at closing (except for Texas borrowers) so you can access funds on your own timeline.
Additionally, PenFed allows HELOCs on second homes, making it a solid choice for borrowers looking beyond their primary residence.
» MORE: Best HELOC lenders
🤔 Reasons why PenFed’s HELOC gives us pause
PenFed’s average closing time of 24 days is slightly slower than the average of 20 days reported by lenders surveyed by NerdWallet. Borrowers must also 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 đź“ž | âś… |
Mobile app 📶 | 🚫 |
In person 🏦 | ✅ |
You can contact PenFed customer service over the phone or in person at a branch.
đź›’ 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 an average closing time of 11 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
Methodology
NerdWallet rates home equity line of credit lenders based on what matters most to borrowers: HELOC rates and fees, how much of a lender’s business is dedicated to home equity lines of credit, HELOC market share, product accessibility, borrowing flexibility and features, customer experience and rate transparency.
We review more than 40 lenders and score HELOC lenders using a weighted system that prioritizes affordability, flexibility and a smooth borrowing experience. Lenders earn higher scores for offering lower borrowing costs, higher combined loan-to-value (CLTV) limits, flexible draw and repayment terms, fixed-rate options, faster closing times and clear, accessible rate information, along with strong customer support throughout the process.
We use a mix of lender-provided information, publicly available data and our own analysis to evaluate each lender. Recent regulatory actions may affect a lender’s score.