Pentagon Federal Credit Union Mortgage Interest Rate and Cost Review

Is Pentagon Federal Credit Union a cheap or expensive mortgage lender? To help you shop for a mortgage, we compare the interest rates and closing costs charged by Pentagon Federal Credit Union to those of other lenders for a comparable set of borrowers. Here is our review of Pentagon Federal Credit Union nationally:

Review ItemPentagon Federal Credit Union
Interest Ratesimilar to other lenders (-0.04%)
Loan Related Closing Costslower than other lenders (-$437)
National Rate and Closing Cost Star Rating(4)

On average, Pentagon Federal Credit Union’s interest rates were similar to those of other lenders (-0.04%). On the other hand, its loan related closing costs were lower than those of other lenders, with a difference of -$437. Overall, combining interest rates and closing costs we estimate that Pentagon Federal Credit Union tends to be an average cost lender, and give it a National Rate and Closing Costs Rating of 4 out of 5 stars. We maintain our independence by not accepting any money from the mortgage lenders we review. To visit Pentagon Federal Credit Union, its website is located at: https://www.penfed.org.

Pentagon Federal Credit Union’s Rate Review by City

Mortgage lenders often set different rates in different geographical markets. For our list of the top mortgage lenders in your area, click here. In particular, among the cities we track Pentagon Federal Credit Union was most active in:

  1. Washington, DC
  2. Baltimore, MD
  3. Wichita, KS
  4. Los Angeles, CA
  5. Dallas, TX

Pentagon Federal Credit Union’s Rate Review by Mortgage Type

Mortgage lenders also tend to charge different interest rates and closing costs depending on the type of mortgage. In our data, Pentagon Federal Credit Union originated Conforming, Jumbo and VA mortgages for new home purchases and refinances. Its average interest rate and total loan related closing cost difference relative to other lenders by mortgages type is as follows.

Purchase/Refinance:
New Purchase MortgagesConformingJumboVA
Interest Rate Difference-0.06%-0.00%-0.05%
Loan Related Closing Cost Difference-$466-$138-$310
Cost Adjusted Rate Difference-0.09%-0.01%-0.07%
National Star Rating(4)(3.5)(4)
Refinance MortgagesConformingJumboVA
Interest Rate Difference-0.01%-0.01%-0.01%
Loan Related Closing Cost Difference-$473-$96-$471
Cost Adjusted Rate Difference-0.07%-0.01%-0.03%
Average Star Rating(4)(3.5)(3.5)

As a summary, Pentagon Federal Credit Union is cheap for Conforming and VA purchase mortgages. It is similar to other lenders for Jumbo purchase mortgages. For refinancing, Pentagon Federal Credit Union is cheap for Conforming mortgage refinance. It is similar to other lenders for Jumbo and VA mortgage refinance. Nevertheless, individual circumstances can matter a lot for mortgage rates, and we always recommend shopping among several of our top mortgage lenders in your area before signing.

Other information about Pentagon Federal Credit Union:

Registered name: Pentagon Federal Credit Union
Registered city and state: TYSONS CORNER, VA, 22102
Regulator: Consumer Financial Protection Bureau (CFPB)

* Source of the data is Federal Financial Institutions Examination Council (FFIEC) and is for mortgages originated in the past year. Our comparable mortgages analysis controls for Pentagon Federal Credit Union’s distribution of loan term (e.g. 30 year vs 15 year), loan-to-value (LTV), debt-to-income (DTI), loan amount, loan program (e.g. Conforming/FHA), loan purpose (e.g. purchase/refinance), and commuting zone. Cost adjusted rates were computed based on each percent of the loan amount in above average loan related closing costs being worth +0.15 of a percentage point in interest rate. Furthermore, the amounts are regularized using a Bayesian approach to control for small samples.