Forego $1,100 in setup fees
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Types of loans offered
Compliant, FHA, VA
- The setup fee is waived for conventional and FHA purchase mortgages
- The instant pricing tool makes it easy to get custom pricing
- Does not accept alternative credit dates
- Requires a minimum score of 620 on its FHA mortgages
- Repeat buyers must put 5% down
- Available in all states except New York
- Charges a $1,100 processing fee, which may be waived on some purchase transactions or FHA rationalization refinances
- Minimum credit rating and down payment shown is for conforming mortgages. Only first-time homebuyers are eligible to deposit 3%; others must give at least 5%
Overall rating of the lender
Advantages and disadvantages
Pennymac Mortgage Interest Rates and Fees
Pennymac makes it convenient to compare mortgage rates. If you click on “Prices” in the top left Pennymac website, you can view today’s sample pricing or use the instant quote tool to get pricing customized to your situation. These individual rates are based on the price and location of the property you are buying, the amount of your down payment and your creditworthiness.
Pennymac charges a $1,100 processing fee for its compliant and FHA mortgages. However, if you are buying a home instead of refinancing, or if you receive an FHA streamlined refinance, you may waive this fee.
Pennymac VA mortgages have an administration fee of 0.95% of the loan amount. If you use a VA mortgage to buy a home, that fee is reduced by $1,100.
Pennymac vs. Rocket Mortgage
To get personalized rates from Rocket Mortgage, you need to launch an application. With Pennymac, on the other hand, you can easily explore the plans without having to apply or create an account first.
Rocket Mortgage ranked #2 in the JD Power 2021 Primary Mortgage Origination Satisfaction study, while Pennymac ranked below the industry average. If customer service is important to you, Rocket Mortgage might be a better choice.
Pennymac vs. LoanDepot
LoanDepot does not list rates online, making it difficult to compare this lender to others unless you are willing to apply for pre-approval. In contrast, Pennymac’s price quote tool makes it easy for you to get an idea of what your price might look like.
If you are buying a home for the first time, you may also be able to invest less with Pennymac than with LoanDepot, which requires a minimum 5% down payment. Pennymac lets first-time homebuyers save just 3%.
This is how Pennymac works
Pennymac is an online lender that originates mortgages in every state except New York. It offers compliant, FHA, and VA mortgages.
If you’re buying a home for the first time, you may only be able to pay back 3% on a conforming mortgage at Pennymac. Other borrowers must deposit at least 5%.
If you plan to get an FHA mortgage, you need a minimum credit score of 620 to qualify with this lender. This is higher than what many other lenders charge for their FHA mortgages — typically the minimum credit rating is 580.
Pennymac does not consider alternative credit data (e.g. proof of rent or utility bills) for any of its mortgages. If you want to apply with this lender, you need to have decent credit.
When you refinance with Pennymac, you pay a $1,100 processing fee. When you get a VA mortgage refinance, the processing fee is 0.95% of the loan amount. The formation fee is waived on compliant and FHA purchase mortgages and FHA streamlined refinances and is reduced by $1,100 on VA purchase mortgages.
If you wish to apply for a mortgage, you can do so online. You can also start by phone Monday through Friday from 6:00 a.m. to 7:00 p.m. PT and Saturday from 6:00 a.m. to 5:00 p.m. PT.
Is Pennymac trustworthy?
Pennymac has one Rating A+ from the Better Business Bureau. BBB ratings are based on a company’s response to customer complaints, honesty in advertising, and transparency in its business practices.
What is Pennymac?
Pennymac is a private mortgage lender offering both conventional and government-backed mortgages.
What are Pennymac’s tariffs?
Does Pennymac offer home equity loans?
No, Pennymac does not currently offer home equity loans or home equity lines of credit (HELOCs).