Pennymac Mortgage Review 2024
Ratings and reviews are from real consumers who have used the lending partner’s services.
Ratings and reviews are from real consumers who have used the lending partner’s services.
580 to 620
0% to 3.5%
Conventional, jumbo, FHA, VA, USDA, home equity
See how we reached our verdict below.
- Wide range of loan options
- Convenient online services
- Rates and terms are transparent and easy to view online
- No HELOCs
- Origination fees not published online
- Limited number of brick-and-mortar locations
Pennymac mortgage overview
Pennymac is a national online mortgage lender that offers and services U.S. mortgage loans and mortgage-related investments.
- Areas of service: Pennymac provides services nationwide to all 50 states, the District of Columbia and U.S. territories including Guam, Puerto Rico and the Virgin Islands. However, not all products are available in all states.
- Digital service: Pennymac specializes in online mortgage services.
- Headquarters: 3043 Townsgate Road, Suite 200, Westlake Village, CA 91361
- Website: Pennymac.com
Pennymac rates, terms and fees
Rates
Pennymac is transparent about its rates. The company shares rates online and provides daily updates.
Based on Home Mortgage Disclosure Act (HMDA) data, the average rate for a Pennymac loan in 2023 was 7.01%. The average rate spread that year was 0.97, which is the difference between the average prime offer rate (APOR) and the average annual percentage rate (APR) Pennymac offered to mortgage customers in that year. (The higher the rate spread, the more expensive the loan).
In 2022, Pennymac’s average interest rate was 4.11% with a spread rate of 0.27.
Fees
Pennymac lists some of its fees online, but it doesn’t provide total loan costs and origination fees. Based on HMDA data, however, we know the average Pennymac origination charge in 2023 was $4,808 and the average total loan cost was $8,512.
What discounts does Pennymac offer?
Pennymac offers a discount of 1% off your rate for the first year (12 payments) through its lender-paid buydown program. It also offers a $1,000 bonus at closing if you’re preapproved and a $2,000 bonus if you refinance your Pennymac loan within three years.
What types of mortgage loans does Pennymac offer?
Pennymac offers a variety of home loans including:
Conventional loans
Pennymac offers conventional loans, including fixed-rate (15-, 20- and 30-year) mortgages and adjustable-rate mortgages (ARMs). It also offers conventional refinance, conventional cash-out refinance and FHA-to-conventional refinance loans.
Conventional loan qualification requirements
- Credit score of 620 or higher
- Minimum 3% down payment
- Proof of income
- Debt-to-income ratio of no more than 45% (or up to 50% in some cases)
FHA loans
Pennymac offers government-backed FHA loans, which have less stringent qualification requirements than conventional loans. The lender also offers FHA Streamline refinance loans and FHA cash-out refinance loans.
FHA loan qualification requirements
- 3.5% minimum downpayment
- Must live in the property being purchased
- Debt-to-income ratio no higher than 50% to 55% (dependent on credit history)
- Generally good credit history, with some exceptions
VA loans
Pennymac offers U.S. Department of Veterans Affairs (VA) loans to eligible servicemembers and veterans. These loans have less stringent qualifications and come with significant benefits, including no down payment and lower interest rates and closing costs. Pennymac also offers VA Streamline interest rate reduction refinance loan (IRRRL) refinancing and VA cash-out refinancing loans.
VA loan qualification requirements
- Meet terms-of-service requirements
- Minimum FICO score of 640
- DTI of 41% or less
USDA loans
Pennymac doesn’t offer USDA purchase loans; however, it does offer Streamlined Assist Refinance loans.
USDA loan qualification requirements
- Property must be your primary residence
- Loan being refinanced must be a USDA loan
- Loan must be at least one year old
- Approval of income and debt-to-income ratio (though no set requirements)
- Six-month history of on-time loan payments
- Credit approval
Jumbo loans
Pennymac offers jumbo loans for those people who want a loan in excess of the conforming loan limit ($766,550 in most U.S. counties). Pennymac also offers jumbo refinance and jumbo cash-out refinance loans.
Jumbo loan qualification requirements
- Credit score of 700 or higher
- 10.01% minimum down payment required
- Reserve requirements
- Proof of steady income
- Debt-to-income ratio of 43% or less
Home equity loans
Pennymac offers home equity loans to qualified homeowners, though it doesn’t currently offer HELOCs.
Home equity loan qualification requirements
- At least 15% equity in your property
Pennymac mortgage qualifications
| Credit score minimum | 580 to 620 |
| DTI ratio Debt-to-income (DTI) ratio compares your monthly gross income to your monthly debt payments. maximum |
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| Down payment minimum |
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Don’t know your credit score? Get your free score on LendingTree Spring today.
How to boost your loan approval odds
Pennymac doesn’t disclose hard-and-fast rules for acceptance or rejection of loan applications. However, 2023 HMDA data shows Pennymac-approved borrowers had an average loan-to-value (LTV) ratio of 75.7% that year across all types of loans. A higher share of borrowers had a DTI ratio of less than 40% than those who had a DTI ratio of greater than 43%.
Overall, Pennymac accepted 76.1% of loan applications, leaving 23.9% rejected. This is in the higher to middle of the pack when it comes to denial rates for other large-volume lenders, which range from the low-teens to mid-30s.
How to apply for a Pennymac mortgage
1. Choose your loan type
On Pennymac’s website, a pulldown menu of “loan options” allows you to navigate to pages outlining the various types of loans available: Home purchase loans, home refinance loans or home equity loans. From there, you can link to pages outlining the various subcategories offered under each.
2. Get prequalified
Securing prequalification approval will give you an estimate as to the size of the mortgage for which you’ll likely qualify and the corresponding rates.
3. Submit a loan application
Applications for Pennymac loans can be completed online. To start, you must register for an account. Once your loan is preapproved (a step more official than prequalification), you can lock in the mortgage rate (in some cases, up to 90 days) in case the rate rises in the future. Pennymac’s lock-and-shop program requires a $595 nonrefundable fee at the time of the rate lock.
Documents you’ll need for prequalification or preapproval
- Identification
- Tax documents
- Bank statement
- Pay stubs
- Debt and asset statements
- Gift letters (if you’re using gifted funds)
Find out more about how to apply for a home loan.Is it safe to get prequalified with Pennymac?
Yes, it’s safe to get prequalified and preapproved with Pennymac. While preapproval will require a hard credit inquiry, it will only minimally impact your credit score if you have a generally good credit history.
Pennymac’s customer service experience
Those borrowers interested in securing a loan through Pennymac can start the preapproval process online by answering a few questions. You can also contact a representative via telephone. Representatives are available Monday through Friday from 5 a.m. to 6 p.m. PST, Saturday from 7 a.m. to 1 p.m. PST and Sunday from 6 a.m. to noon PST.
- Phone: 888-996-2203
For current customers, Pennymac provides online support that allows you to manage your mortgage via your phone, tablet or computer anytime. Live customer service agents are available via telephone Monday through Friday from 5 a.m. to 6 p.m. PST and Saturday from 7 a.m. to 11 p.m. PST. Automated support via telephone or chat is available 24/7.
- Phone: 800-777-4001
How does Pennymac compare to other lenders?
|  |  |
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|---|---|---|---|
| LendingTree’s rating | |||
| Minimum credit score | 580 to 620 | 600 | 580 to 620 |
| Minimum down payment | 0% to 3.5% | 0% to 3.5% | 0% to 3.5% |
| Rate spread Rate spread is the difference between the average prime offer rate (APOR) — the lowest APR a bank is likely to offer any private customer — and the average annual percentage rate (APR) the lender offered to mortgage customers in 2023. The higher the number, the more expensive the loan. | 0.97% | 0.40% | 0.73% |
| Loan products and programs |
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| Better for: | Prospective buyers who want a simple online application process. Also those looking for government-backed loans. | Those looking for a less expensive loan or a HELOC. AmeriSave stands out as the one lender among the three that offers HELOCs. | Prospective buyers who are comfortable with an online loan and aren’t looking for a USDA loan. |
Pennymac vs. AmeriSave Mortgage
Pennymac and AmeriSave are both online lenders that offer a variety of standard mortgage products. A few key differences: AmeriSave offers HELOCs, while Pennymac doesn’t; and Pennymac offers USDA loans, while AmeriSave doesn’t.
The minimum credit score is slightly lower at Pennymac for some loans, but the rate spread is more than two times that of AmeriSave (0.97% vs. 0.40%, respectively), making Pennymac loans more expensive, on average.
→ Read more in our full AmeriSave Mortgage review.
Pennymac vs. Rocket Mortgage
Pennymac and Rocket Mortgage are both legitimate online mortgage lenders. Pennymac, however, offers USDA loans, while Rocket Mortgage doesn’t. Neither offers HELOCs.
Pennymac’s rate spread is higher than Rocket Mortgage — 0.97% vs. 0.73%, respectively — making Pennymac loans more expensive, on average. Rocket Mortgage also offers longer hours of live customer service than Pennymac.
→ Read more in our full Rocket Mortgage review.
Ready to compare lender offers on LendingTree? Get Your Rates TodayHow LendingTree rated Pennymac Mortgage
LendingTree’s mortgage lender rating is based on a five-point scoring system that factors in several features, including digital application processes, available loan products and the accessibility of product and lending information.
LendingTree’s editorial team calculates each rating based on a review of information available on the lender’s website. Lenders receive a half-point on the “offers standard mortgage products” criterion if they offer only two of the three standard loan programs (conventional, FHA and VA). In some cases, additional information was provided by a lender representative.
Pennymac’s scorecard: 
Publishes rates online
Offers standard mortgage products
Includes detailed product info online
Shares resources about mortgage lending
Provides an online application
= 0 points = 0.5 points = 1 point
Frequently asked questions
Pennymac allows you to view the rates for various types of loans and apply for them online. Once you have a mortgage through the company, you can also manage it online.
Yes, Pennymac is a legitimate U.S. mortgage lender that’s been in business since 2008. Pennymac has an A+ rating with the Better Business Bureau.
You can view more info about Pennymac’s state licenses and registrations through the Nationwide Multistate Licensing System and Registry (NMLS) website.
All home loans affect your credit score to some degree, but not significantly— typically knocking it down less than 20 points, on average. Also, scores typically rebound back to the pre-mortgage level after a year.
Pennymac scores only 1.6 out of 5 stars on TrustPilot, earning it a “bad” rating based on more than 1,500 customer reviews. However, 56% of reviewers gave the company a five-star review as of August 2024.
The primary complaints are about poor communication and poor customer support, including the lender’s “archaic phone system.” However, customers who gave Pennymac five stars experienced the opposite dynamic — often citing the team’s professionalism, knowledge and helpfulness.