Interest-Only Fixed-Rate Equity Loan

Our Interest-Only Fixed-Rate Equity Loan makes budgeting a snap: You begin with low interest-only payments then move to principal-and-interest payments starting the sixth year.
(Not available in Texas.)

Interest-Only Fixed Equity Loan Payment Sample
Loan Amount APR Payment Years 1-5 Payment Years 6-20
$40,000 7.00% $233 $360

1Receive a 0.25% rate discount on your Fixed Equity Loan. The rate discount is applied after your application is accepted. Discount is available for new Fixed Equity Loan applications. You must set up and maintain monthly recurring automatic payments from your Navy Federal checking account for the life of the loan; otherwise, the 0.25% rate discount will be removed, and your loan will revert to the original note rate.

2Special offer. Navy Federal will pay most closing costs on new Equity Loan applications (Fixed Equity Loans and Lines of Credit) including settlement fees, flood determination fee, title search and notary fees. Offer excludes government fees and recording charges, taxes, and when required, appraisal fees, title insurance and any fees associated with condominium properties. Loans paid off and closed in less than three years from the loan origination date will require reimbursement of all closing costs paid by Navy Federal. For loan amounts up to $250,000, closing costs that members must pay typically range between $150 and $1,200. Closing costs depend on the location of the property, property type and the amount of the Equity Loan. Offer is not valid for Fixed Equity Loans/Lines of Credit used for a home purchase. Offer is subject to change or cancellation without notice.

3Rates are as low as 7.25% APR and are based on an evaluation of credit history, CLTV (combined-loan-to-value) ratio, loan amount and occupancy, so your rate may differ. A sample Interest-Only Fixed Equity loan payment based on $40,000 at 7.00% APR for 1-5 years is $233 and for 6-20 payment years is $360. This sample payment includes the 0.25% rate discount for automatic payments.

4Some restrictions may apply. The maximum combined loan-to-value for investment properties is 70%.