Navy Federal Credit Union (NFCU) is about as open about what mortgages it offers as any other lender on the market. It not only features the basic fixed-rate, adjustable-rate, VA and FHA loans, but also no-down-payment and other military loans. This level of transparency is great for those who want to explore which type of loan is best for their personal situation. When it comes down to interest rates, NFCU boasts some fantastic intermarket comparisons throughout all mortgage types.
Even with all these great perks, though, it’s important to remember that NFCU is an extremely exclusive credit union. In fact, you have to be either an active or former part of the U.S. military or Department of Defense, or a relative of an existing member.
| These rates require a 1% loan origination fee. For a 0.25% interest rate increase, this fee can be waived. | |||
| Mortgage | Interest Rate | Points | Apply |
| 30-Year Fixed-Rate Conforming | 5.000% | 1.00 | Compare Rates |
| 30-Year Fixed-Rate Jumbo | 4.750% | 1.00 | Compare Rates |
| 15-Year Fixed-Rate Conforming | 4.250% | 0.75 | Compare Rates |
Overview of Navy Federal Mortgages
VA-backed mortgages are for veterans and certain active duty and reserve members of the military. You can use them to cover as much as 100% of your new home’s value, helping you to avoid a down payment altogether. At NFCU, you can get a loan in either a 15- or 30-year term. But if you don’t fall under the umbrella of eligibility for VA loans, NFCU has also created the Military Choice mortgage, which is designed for active duty military.
FHA loans are angled specifically toward first-time homebuyers, granting applicants down payments up to 6% of the home’s overall value. You can also apply for these mortgages as a refinancing loan, with 30- and 15-year fixed rate and 3/1 and 1/1 ARMs up for grabs.
NFCU’s proprietary 100% Financing HomeBuyers Choice mortgage program is similar to what an FHA loan includes, with some slight variation. These loans are available up to $1 million, making them eligible to be jumbo loans. You’ll also find there are extremely low down payment stipulations and no mortgage insurance is needed.
Adjustable-rate mortgages (ARMs) and fixed rate loans are easily the most common types of mortgages, though they’re vastly different. The interest rates associated with ARMs are variable, but only after they pass the initial rate lock period. As you might expect, fixed rate loans have the exact opposite, as the interest rate you get the day you apply is what sticks for the life of the loan.
What Your Monthly Mortgage Payments Could Be With Navy Federal
Interest rates get all the attention when most people are searching for a mortgage, but much more than that goes into the final incarnation of what your monthly payment will end up being. For starters, the value of your new home is split between two amounts: your down payment and the balance. Whatever this balance is what your mortgage will cover, and that’s what the interest rate and APR are applied to.
| These payment calculations do not include homeowners insurance, property taxes or closing costs. | |||
| Mortgage | Interest Rate | Loan Size | Your Payment |
| 30-Year Fixed-Rate Conforming | 5.00% | $200,000 | $1,582/month for 30 years |
| 30-Year Fixed-Rate Jumbo | 4.750% | $600,000 | $4,467/month for 30 years |
| 15-Year Fixed-Rate Conforming | 4.250% | $200,000 | $1,505/month for 15 years |
How Navy Federal Compares to Other Lenders
The interest rates and APRs at Navy Federal are extremely beneficial not only to military members on the prowl for VA loans, but also for other members that qualify for conventional loans instead. In fact, it manages to beat out or match “big banks” Wells Fargo and Bank of America, as well as fellow credit union PenFed.
| Mortgage | Navy Federal | Wells Fargo | PenFed | Bank of America |
| 30-Year Fixed Conforming | 5.00% | 5.125% | 5.500% | 5.625% |
| 15-Year Fixed Conforming | 4.250% | 4.500% | 4.750% | 4.625% |
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Refinancing With Navy Federal
Refinancing is an extremely valuable tool for many homeowners that are stuck in a mortgage that just doesn't suit their finances anymore. Whether you want to shorten the overall term length of your loan, lower your monthly payments or switch from an ARM to a more reliable fixed-rate loan, a refinanced mortgage can help.
Similar to normal mortgage purchase rates, there is no magic formula available that's used to calculate what types of rates you'll receive from a lender. However, there are a number of factors that lenders consider that are integral to refinancing rates: the size of your new loan, your current loan-to-value ratio, the level of equity you hold in your home, your credit score and whether the home is your primary residence.
Should You Get a Mortgage from Navy Federal?
Navy Federal has fantastic interest rates, especially when it comes to VA loans for military members. So if you fall into this group of borrowers, Navy Federal is one of your best options on the entire mortgage market. So while the conventional fixed and adjustable-rate loans of this credit union are solid as well, military loans are where the most benefit lies.
Tips for Navigating the Mortgage Market
- Working with a financial advisor has many benefits to your financial life, and the SmartAsset advisor matching tool makes it easy to find one. Once you’ve answered some simple questions about your needs and the mortgage that you’re looking to get, we’ll pair you up with as many as three advisors who serve your area.
- Annual percentage rates (APRs) and interest rates are often thought to be interchangeable terms, but don't get them confused, as their differences can actually offer some insight. Interest rates represent the base level of interest you'll need to pay on your loan, whereas an APR takes into account fees, closing costs and other charges from the lender. You can utilize this split between these rates as a way to infer how high the extraneous costs of the lender are, since this can sometimes be difficult to determine elsewhere.
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