Pentagon Federal Credit Union

Pentagon Federal Credit Union (aka PenFed) is a credit union in Washington, DC area. It often has good rates on CDs, mortgage and home equity loans, and car loans. It also has a good rebate credit card. Deposits with PenFed are insured by NCUA.

Membership Eligibility
See how to join. Anybody can join by paying a one-time $20 fee to a non-profit organization National Military Family Association (NMFA).

CD Promotions
In the last few years (2005 - 2008), PenFed had offered CDs at market leading rates in late December and early January. Current CD rates.

Mortages
PenFed offers mortgages with no lender closing cost. In addition to 15-, 20-, and 30-year fixed rate mortgages, PenFed also has a unique 5/5 ARM product. Its jumbo loans often have the same rate as conforming loans. See current mortgage rates.

No Lender Closing Cost
Fine prints from PenFed (retrieved from PenFed Mortgage Center on Nov. 22, 2008):

"'No Lender Closing Costs: Applications for investment properties or refinancing of existing Pentagon Federal mortgages are not eligible for this promotion. Fees covered include, but are not limited to, credit report, flood search, tax set up, appraisal, and settlement attorney fee (Pentagon Federal will pay a settlement fee when one of our preferred providers is used). In the event a second appraisal is required or additional attorney fess are levied the applicant will be responsible for any future costs. The applicant is responsible for the following fees and costs at the time of closing: title costs, recording fees, survey or pest inspection costs, escrow reserves and interest due until first payment, other cost may be included on a case-by-case basis. Escrow will only be waived at 75% LTV. If a loan is withdrawn, does not close, or the purchase contract is terminated, all third-party fees and costs incurred will become the responsibility of the applicant. Other terms and conditions may apply, please contact a mortgage representative for details. Different terms and conditions may apply in Puerto Rico. We do business in accordance with the Federal Fair Housing Law and the Equal Credit Opportunity Act.'"

5/5 Adjustable Rate Mortgage
The 5/5 ARM offers Because the rate only adjusts every five years, with a 2% cap, the 5/5 ARM is a good alternative to the more common 5/1 ARM offered elsewhere. PenFed offers 1/1, 3/1, 5/1, 7/1, and 10/1 ARM too.
 * Adjustable Rate Mortgage with a low rate that only adjusts every 5 years for 30 years
 * Rate would adjust up to 2% or our prevailing rate, whichever is the lowest
 * Maximum lifetime adjustment that will not exceed 5% above the initial rate

Rebate Credit Card
PenFed offers a Visa Platinum Cash Rewards credit card which gives 5% rebate for gas paid at the pump, 2% rebate for supermarket purchases, and 1.25% for everything else. Rebate is automatically credited to statement every month. There is no cap to the rebate amount.