July 31, 2021

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Mortgage News

PennyMac Mortgage Review for 2021


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 conventional loan or a government loan, and there is even a mortgage option if, as an investor, you are looking for funds to buy an investment property.

While 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 rates on conventional, FHA, and VA mortgages with terms of 15 to 30 years.

But remember, other factors determine yours indeed Rate how your credit score and the amount of your down payment. So you need to speak to a credit advisor to get a customized quote.

They also want quotes from at least 2 other lenders so you can go side by side Cost comparison origination fees and Closing costs.

Average 30 year mortgage rate from major lenders

Wells Fargo
Accelerate Loans
30-year average interest rate, 2019
4.05% 4.22% 4.16% 4.22%
Monthly P&I payment *
$ 961 $ 980 $ 973 $ 980
Average origin fee, 20191
$ 1,245 $ 1,199 $ 2,805 $ 1,279
Average loan cost, 20191
$ 5,997 $ 3,484 $ 5,075 $ 3,440

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 a specific payout date. This could help you save money on interest while keeping your monthly payments at a comfortable level.

Or if you are an investor you can either apply fixed or adjustable interest rate investment real estate mortgage and build 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 calculator
  • Mortgage Learning Center
  • Home appraiser
  • Real estate concierge service

But 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 get yours Completion of Disclosure approximately three days prior to closing which contains details of your final loan costs.

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 origins 20193rd
CFPB complaints
Complaints per 1,000 mortgages
2020 JD nominal power
302,700 40 0.13 773/1000
Wells Fargo
1,026,800 342 0.33 840/1000
Accelerate Loans
774,900 187 0.24 883/1000
527,600 188 0.36 860/1000

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, the lender came last in JD Power’s 2020 mortgage satisfaction survey.

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 deposit of 3% to 5% and a minimum credit rating of 620
  • FHA 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
  • VA home loan – These mortgages are available to veterans, active duty military, reservists, National Guard and their eligible spouses. You need at least 640 credit points
  • USDA home loan – A zero down mortgage loan for home buyers in eligible rural areas. This loan requires a minimum credit rating of 640
  • Investment real estate 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 property 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 Disbursement Refinancing for homeowners who want to access their home.

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.

You can view a full list of PennyMac’s state licenses 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. It’s also an option if you’re okay with getting a mortgage and providing 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.