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Pennymac is an online lender that originates mortgages in all states except New York.
PennyMac; Rachel Mendelson/Insider
The bottom line: Pennymac Mortgage is a great choice for government-backed loan borrowers or those who want to easily shop rates commitment-free. It’s also good if you’re looking to save money on lender fees (Pennymac waives its $1,100 origination fee if you’re purchasing a home with a conforming or FHA mortgage). But you’ll need a relatively high score to get an FHA loan with this lender.
Overall lender rating
FeatureInsider rating (out of 5)Loan types3Affordability3.5Customer satisfaction3Trustworthiness5Total3.63
Pros and cons
ProsCons
If you’re purchasing a home, the origination fee is waived on conforming and FHA mortgages and reduced on VA mortgages.
Get customized rates without having to create an account or apply for a mortgage
Doesn’t accept alternative credit dataFHA mortgages require a minimum credit score of 620, which is higher than with many other lenders
Pennymac mortgage interest rates and fees
Pennymac makes it convenient to compare mortgage rates. If you click on “Rates” at the top left of the Pennymac website, you can view today’s sample rates or use the instant quote tool to get rates customized to your situation. These customized rates are based on the price and location of the property you’re purchasing, the size of your down payment, and your credit score.
Pennymac charges a $1,100 origination fee on its conforming and FHA mortgages. However, if you’re purchasing a home rather than refinancing, or if you’re getting an FHA streamline refinance, it may waive this fee for you.
Pennymac’s VA mortgages come with an origination fee equal to 0.95% of the loan amount. If you’re using a VA mortgage to purchase a home, it will reduce this fee by $1,100.
Compare to other mortgage lenders
Pennymac vs. Rocket Mortgage
National Mortgage Professional
Rocket Mortgage
Types of mortgages
Conforming, FHA, VA, USDA streamline, jumbo, home equity loan
Types of mortgages
Conforming, jumbo, FHA, VA
Standout feature
Instant rate quote tool
Standout feature
Customer service
Pennymac MortgageRocket Mortgage by Quicken Loans
To get personalized rates from Rocket Mortgage, you’ll need to start an application. Pennymac, on the other hand, lets you easily explore rates without having to apply or create an account first.
Rocket Mortgage ranked No. 1 in J.D. Power’s 2022 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
National Mortgage Professional
loanDepot is a mortgage lender
PR Newswire
Types of mortgages
Conforming, FHA, VA, USDA streamline, jumbo, home equity loan
Types of mortgages
Conforming, jumbo, FHA, VA
Standout feature
Instant rate quote tool
Standout feature
Physical branches in 44 states
Pennymac MortgageLoanDepot
LoanDepot doesn’t list any rates online, making it difficult to compare this lender to others if you aren’t ready to apply for preapproval. By contrast, Pennymac’s rate quote tool makes it easy to get an idea of what your rate might look like.
If you’re a first-time homebuyer, you may also be able to put down less with Pennymac than with LoanDepot, which requires a down payment of at least 5%. Pennymac lets first-time homebuyers put down as little as 3%.
How Pennymac works
Pennymac is an online lender that originates mortgages in all states except New York. It offers conforming, FHA, VA, USDA streamline refinances, jumbo, and home equity loans.
If you’re a first-time homebuyer, you may be able to put just 3% down on a conforming mortgage with Pennymac. Other borrowers will need to put down at least 5%.
If you plan on getting an FHA mortgage, you’ll need a credit score of at least 620 to qualify with this lender. This is higher than what many other lenders require on their FHA mortgages — typically, the minimum credit score is 580.
Pennymac doesn’t consider alternative credit data (such as proof of rent or utility payments) on any of its mortgages. If you want to apply with this lender, you’ll need a decent credit score.
If you’re refinancing with Pennymac, you’ll pay an origination fee of $1,100. If you’re getting a VA mortgage refinance, the origination fee is equal to 0.95% of the loan amount. The origination fee is waived on conforming and FHA purchase mortgages and FHA streamline refinances, and is reduced by $1,100 on VA purchase mortgages.
If you want to apply for a mortgage, you can do so online. You can also get started over the phone Monday through Friday from 6 a.m. to 7 p.m. PT, and Saturday from 6 a.m. to 5 p.m. PT.
Is Pennymac trustworthy?
Pennymac has an A+ rating from the Better Business Bureau. BBB ratings are based on a company’s response to customer complaints, honesty in advertising, and transparency about its business practices.
In J.D. Power’s 2022 customer satisfaction study, Pennymac ranked below the industry average. However, the lender has good reviews on its Zillow profile.
Pennymac FAQ
Is Pennymac a good mortgage company?
We didn’t rate Pennymac as high as some of our favorite mortgage lenders, but it’s still an overall solid option, particularly if you’re getting an FHA or VA loan. We like that Pennymac lets you get a rate quote without having to provide contact information, but if you have a lower credit score, it might not be a great choice for you.
What are Pennymac’s rates?
You can see sample rates from Pennymac on its website, or you can use its instant rate quote tool to get a customized rate.
Does Pennymac offer home equity loans?
Yes, Pennymac currently offers home equity loans.