2022 Navy Federal Credit Union Mortgage Review – Forbes Advisor
Navy Fed members across the United States can apply for conventional and VA home loans to buy a home or refinance an existing mortgage. The credit union also offers mortgages for second homes and investment properties, as well as home equity loans.
Unfortunately, Navy Federal does not provide new construction loans. But once your construction is complete, you can refinance your loan with Navy Federal.
Most federal Navy home loans have a fixed interest rate and repayment terms of up to 30 years. Adjustable rate mortgages (ARMs) with a lower initial rate are also available and have terms of 10 to 30 years.
You can view the lowest rates on the Federal Navy website, but you must start the pre-approval process to see a custom rate.
Navy Federal also offers a few perks to help you save money.
- Freedom lock: You can adjust your rate up to two times (up to 0.50%) between your initial request and closing if market rates drop. This feature is for purchase and refinance loans only.
- Price Match Guarantee: Receive $1,000 if you close with another lender when Navy Federal can’t match the competing rate. You must first lock in your rate with Navy Federal to qualify.
- RealtyPlus: Using a participating real estate agent entitles you to receive $400 to $9,000 in cash, gift card or post-closing commission discount in eligible states.
Buy loan options
Navy Federal offers a variety of home purchase loans and many have flexible down payment requirements.
- VA Loans: Buy loans for borrowers who qualify for a VA loan. No down payment or PMI is required, but VA financing fees apply.
- Military choice: Military members and families without VA loan benefits may qualify and not be required to make a down payment or pay PMI. This type of loan has higher interest rates than its VA counterpart or a conventional loan.
- Conventional fixed rate mortgage: A traditional mortgage with fixed monthly payments. Your down payment can be as low as 5% and PMI can also be optional.
- Buyers Choice: No down payment is required and sellers can contribute up to 6% of the home’s value towards closing costs. However, the interest rate is higher than the classic fixed rate product.
- Adjustable rate mortgage: This loan is designed for buyers who do not plan to own their home for more than five years. Your initial rate can be lower than a fixed rate loan and last up to five years. However, your future interest rate changes may be higher.
- Giant Loans: Homebuyers may qualify for jumbo loans when the loan amount exceeds $647,200 in most states. The borrowing limit can exceed $970,800 in Alaska and Hawaii.
Related: Best VA Mortgage Lenders
Mortgage refinance options
Navy Federal mortgage refinance options are similar to purchase loan offers, including Military Choice and Homebuyers Choice options.
You can have a fixed interest rate for a conventional loan or VA for a potentially lower rate or monthly payment.
Additionally, you can apply for a cash refinance to leverage the equity in your home. Mortgages and VA Streamline ARMs (IRRRL) are also available to potentially minimize borrowing costs.