Founded in 2008, PennyMac Loan Services LLC (PennyMac) is a leading nationwide lender, serving over 1.8 million borrowers by 2020.
Whether you are thinking of buying or refinancing, PennyMac offers a wide variety of loan programs for single family homes, condominiums, townhouses, and apartment buildings.
You can choose between a traditional loan or a government loan, and there is even a mortgage option if you are an investor looking for funds to buy an investment property.
Although PennyMac mortgages are available in all states (except New York), the lender does not offer all types of home loans. You also need at least 620 credit points to qualify for funding.
Note that this is a review of PennyMac's lending business. We don't rate PennyMac's loan services side, although the company also services existing mortgage loans.
PennyMac mortgage rates
PennyMac is transparent about its mortgage rates. You can find pricing information directly on the lender's website.
If you search for "baseball" numbers, you can find the latest interest rates on conventional, FHA, and VA mortgages with terms of 15 to 30 years.
However, be aware that other factors will determine your actual rate, such as: B. Your creditworthiness and the amount of your deposit. You will therefore need to speak to a credit advisor to get a customized quote.
You'll also want quotes from at least 2 other lenders so you can compare origination and closing costs side by side.
Average 30 year mortgage rate from major lenders
30-year average interest rate, 2019
Monthly P&I payment *
Average origin fee, 20191
Average Loan Cost, 20191
In 2019 (the most recent data available), PennyMac's mortgage rates and fees were comparable to other lenders. But prices have changed since then – and your own rate could be higher or lower than average.
You can get a quote online at today's prices. You'll need to provide your credit history, personal information, state, and contact information.
Check PennyMac Mortgage Rates Today, March 31, 2021
PennyMac Mortgage Review for 2021
One of the best things about PennyMac is that it doesn't just offer conventional and federally supported loans.
When you refinance your home, you can choose a "fixed term mortgage" and choose a specific payout date. This could help you save money on interest while keeping your monthly payments at a comfortable level.
If you are an investor, you can apply for either a fixed rate or a floating rate investment property mortgage and start building your real estate portfolio.
PennyMac is also flexible with its repayment terms. While some lenders may only offer this PennyMac offers fixed rate mortgages with a term of 15 or 30 years and an option with a term of 20 years.
The lender's website also has tools to help you make an informed decision, such as:
Affordability CalculatorMortgage Learning CenterHome Value EstimatorReal Estate Concierge Services
While PennyMac has good choices, the lender doesn't offer home equity loans or home equity lines of credit (HELOCs). So if you want to withdraw cash from your home, refinancing is your only alternative.
In addition, the lender does not offer jumbo loans. These are loans that exceed the compliant credit limit set by Fannie Mae or Freddie Mac.
Check Your Mortgage Eligibility (March 31, 2021)
Working with PennyMac
The first step in getting a PennyMac mortgage is to get pre-approved online. The lender makes the application process easy and convenient.
PennyMac's online system allows you to get a quote, complete a home loan application, request your credit rating, import bank statements and securely upload your documents.
You can use WorkNumber® verification to access W-2 from your employer, and the lender uses a two-tier verification system to protect your confidential information.
Once PennyMac has received your application and related documentation, the subscription process from application to completion can take anywhere from 45 to 60 days.
You will receive your closing statement approximately three days in advance of closing, which will give details of your final loan cost.
PennyMac customer service reviews
PennyMac receives 4 out of 5 stars on Trustpilot and Zillow. Several borrowers praised the company for its cost-effective service, its competent and professional advisors and its smooth operation.
You can also find 34,000+ reviews from happy customers on the lender's website.
Mortgage complaints from major lenders
Mortgage origins 20193
Complaints per 1,000 mortgages
2020 JD nominal power
However, PennyMac also received negative reviews from a small percentage of borrowers, with the majority of these complaints being due to delays in closing and disorganization.
PennyMac has 0.13 customer complaints per 1,000 mortgages as reported by the Consumer Financial Protection Bureau. Unfortunately, in J.D. Power last place.
Mortgage loan options at PennyMac
Some of the available home loan programs from PennyMac include:
Conventional Home Loan – Fixed rate and adjustable rate mortgages backed by Fannie Mae or Freddie Mac. This loan requires a minimum 3% to 5% down payment and a minimum credit rating of 620FHA Home Loans – FHA loans are popular with first time home buyers. They require a minimum deposit of 3.5%. While most lenders require a minimum loan value of 580 for this program, PennyMac requires a minimum loan value of 620 for FHA funding, according to a company representative. These mortgages are available to veterans, active service soldiers, reservists, and Nationals, Guardsmen and their eligible spouses. You need at least 640 credit points. USDDA Home Loan – A zero-down mortgage loan for home buyers in eligible rural areas. A minimum credit value of 640 is required for this loan. Investment Property Mortgage – Use this loan to purchase investment property. You need a minimum down payment of 15% for a single-family house and 25% for a property with two to four residential units. According to a lender representative, there is no per se minimum credit rating for investment home loans "although borrowers need good or excellent credit." PennyMac takes into account other factors such as a borrower's and cash reserves in approving these loans Debt-Income Ratio
Any of these mortgages can be used to buy a new home or to refinance an existing one.
PennyMac also offers withdrawal refinancing for homeowners looking to access their home equity.
If you are unsure which type of mortgage is best for you, your loan officer can help you compare options and make the right decision.
Check PennyMac Mortgage Rates Today, March 31, 2021
Where can I get a mortgage with PennyMac?
NMLS ID # 35953
PennyMac loans are available in all states except New York and the District of Columbia. You can apply for a mortgage online anytime, anywhere.
PennyMac also has offices in a few select states: Arizona, California, Florida, Hawaii, Missouri, Nevada, and Texas.
A full list of PennyMac's state licenses can be found here.
Is PennyMac the Best Mortgage Lender for You?
PennyMac might work if you're looking for a traditional loan, a government loan, or if you're looking to finance an investment property. This is also an option if you can apply for a mortgage and provide documentation online.
This lender offers an easy, convenient online application. In most cases, you can expect to close within 30 to 45 days.
Unfortunately if you are looking for an FHA loan and you have a low credit score, PennyMac is not the right lender for you. While other lenders may only allow a score of just 500 for FHA funding, PennyMac requires a minimum score of 620.
As always, you should compare PennyMac rates with some other lenders to ensure you are getting the best deal on your new loan.