Pennymac Mortgage Review 2022 - Credible (2024)

Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. Credible Operations, Inc. NMLS # 1681276, is referred to here as "Credible."

Pennymac is one of the country’s largest home lenders. Whether you’re looking to buy a home or refinance your current mortgage, Pennymac has a variety of loan types to choose from.

It’s tempting to jump right in when you find a mortgage lender with the kind of home loan you need. But before you apply, read through this Pennymac review to learn more about the specific loan products and services it offers.

In this review:

  • Pennymac mortgage review
  • Pennymac mortgage refinancing review
  • How Pennymac can improve
  • Compare multiple lenders before you borrow

Pennymac mortgage review

Best if:

  • You’re seeking a competitive interest rate
  • You want to apply online rather than in person
  • You’re interested in jumbo loans or government home loans

Pennymac Loan Services offers competitive mortgage rates and an online loan process that makes it easy to get started on the path to homeownership. It’s also one of the top home loan servicers and VA lenders in the U.S. by dollar amount, making it a well-established brand.

You’ll find most standard home loan options at Pennymac, including conventional, jumbo, FHA, and VA loans. You can apply online with any device using the My Home By Pennymac portal — no need to call a customer service representative to get started.

Conventional mortgage loans

Pennymac offers several options for buyers interested in a conventional loan, with 15-, 20-, and 30-year fixed-rate loans available. You’ll also find adjustable-rate mortgage loans, which typically start with a fixed-rate period of five, seven, or 10 years followed by periodic rate adjustments.

You can use a conventional loan to purchase a primary residence, a vacation home, or an investment property.

Pennymac isn’t our partner, but you can use Credible to compare prequalified rates from other mortgage lenders all at once. Credible can help you find a great interest rate on a conventional mortgage loan — and you don’t have to leave our platform.

Credible makes getting a mortgage easy

  • Instant streamlined pre-approval: It only takes 3 minutes to see if you qualify for an instant streamlined pre-approval letter, without affecting your credit.
  • We keep your data private: Compare rates from multiple lenders without your data being sold or getting spammed.
  • A modern approach to mortgages: Complete your mortgage online with bank integrations and automatic updates. Talk to a loan officer only if you want to.

Find Rates Now


Jumbo loans

Pennymac jumbo loans let you borrow up to $2 million, allowing you to purchase a pricier home with only one loan. You’ll need a 700 credit score, significant cash reserves, and as much as 20% down to qualify for one, though.

FHA loans

An FHA mortgage loan might be of use to you if you have little money for a down payment or below-average credit. Benefits include a lower credit score requirement and the ability to purchase with just 3.5% down. And in the event you want to refinance later, you have the ability to refinance into a conventional or another FHA loan.

However, rates tend to be higher on FHA loans, and borrowers must pay a mortgage insurance premium in the form of an upfront fee due at closing and monthly premiums, which are rolled into the mortgage payments.

VA loans

VA mortgage loans make it easier for active-duty service members and veterans to purchase a home. Although you’ll pay an upfront funding fee, which you can roll into the loan, you won’t have to pay mortgage insurance for a VA loan. In addition, rates are highly competitive on VA loans, and you can buy with no money down.

Here are more details about purchase loans from Pennymac:

Mortgage purchase programsConventional, jumbo, FHA, VA
Fixed-rate loan terms15, 20, 30 years
Variable-rate loan terms5, 7, or 10 years
Rates and feesRates vary based on loan type and amount and may include points. Fees include a $1,100 origination fee.

FHA loans require mortgage insurance premiums. VA loans require a funding fee.

Minimum credit score
  • Conventional: 620
  • Jumbo: 700
  • FHA: 640
  • VA: 640
Minimum down payment
  • Conventional: 5%
  • Jumbo: 20%
  • FHA: 3.5%
  • VA: 0%
Pennymac isn't our partner, but you can use Credible to compare prequalified rates from other mortgage lenders all at once.

Find Rates Now

Pennymac mortgage refinancing review

Best if:

  • You’re seeking a competitive refinance rate
  • You want to refinance an existing FHA, VA, or USDA loan
  • You want to refinance a jumbo loan

No matter what kind of mortgage you currently have, Pennymac probably has a mortgage refinance option for you. By refinancing, you might be able to get a lower rate, a more favorable term, or even borrow against your home equity.

Conventional refinance loans

You can use a conventional refinance loan to:

  • Reduce your interest rate
  • Extend the term of your loan
  • Switch from a variable-rate loan to a fixed-rate loan
  • Cash out equity

Similar to its purchase loans, Pennymac refinance loans can be used for a primary residence, a second home, or an investment property.

Jumbo refinance loans

If you’re a well-qualified homeowner with a non-conforming loan, you might be able to refinance to reduce your interest rate and save money without extending your current loan term.

At Pennymac, jumbo refinance loans of up to $2 million are available to borrowers with 12 months’ worth of cash reserves. With the cash-out refinance option, you can draw up to $500,000 against your equity.

FHA refinance loans

As an FHA borrower looking to refinance, you have a few options. One is the FHA-to-conventional refinance, which you can use to eliminate the mortgage insurance on your current FHA loan, as long as you have sufficient equity.

Pennymac also offers FHA streamline refinances, which have reduced documentation requirements and no appraisal requirements, and FHA cash-out refinance loans.

VA refinance loans

If you’re a VA-eligible borrower, you also have a few good refinance options. Pennymac offers a VA interest rate reduction refinance loan (IRRRL) which, as the name suggests, lets you trade your current VA loan for a new one with a lower interest rate.

There’s also a VA cash-out refinance loan you can use to draw from your equity. You can use the funds however you want.

USDA streamlined assist

Pennymac doesn’t offer a USDA purchase loan, but it does have a revamped version of the USDA refinance loan. USDA streamlined assist refinance loans are easier to qualify for and have lower fees than the previous USDA refinance loan. It’s called a “streamlined” loan because no appraisal is required, which helps you close on your new loan faster.

You might qualify for a streamlined assist loan if you currently have a USDA-backed mortgage and would save at least $50 per month by refinancing.

How Pennymac can improve

As one of America’s largest home loan servicers and VA lenders, Pennymac offers competitive rates on a variety of home mortgage loans. But there’s some room for improvement:

  • Offer conventional loans with a 97% loan-to-value (LTV) option: Pennymac requires at least 5% down with conventional financing. However, Fannie Mae and Freddie Mac both have programs that let eligible homebuyers purchase with just 3% down.
  • Offer home equity loans: Refinancing into a new first mortgage makes sense for many homeowners, but a cash-out refi isn’t always the best choice for drawing equity from your home. A home equity loan and home equity line of credit would appeal to homeowners who are satisfied with their current mortgage but want to tap into their equity.
  • Offer USDA purchase loans: USDA-backed mortgage loans help qualified buyers purchase homes with no money down. Pennymac does offer a USDA streamlined assist loan that can help current USDA borrowers reduce their fees, but it doesn’t currently offer purchase loans backed by the USDA.

Compare multiple lenders before you borrow

Pennymac has helped over 4 million homeowners achieve their dreams, but it’s always a good idea to compare loans from a few different lenders before making a final decision.

In addition to looking at rates, consider down payment requirements, fees, and any special programs that might make one lender stand out from the rest.

To help you find the best lender and the right loan for you, Credible lets you check mortgage purchase and mortgage refinance rates from all our partner lenders in just a few minutes, with no impact on your credit score.

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About the author

Pennymac Mortgage Review 2022 - Credible (1)

Daria Uhlig

Daria Uhlig is a contributor to Credible who covers mortgage and real estate. Her work has appeared in publications like The Motley Fool, USA Today, MSN Money, CNBC, and Yahoo! Finance.

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Home » All » Other Mortgage Lender Reviews » Pennymac Mortgage Review 2022

Pennymac Mortgage Review 2022 - Credible (2024)


Is PennyMac a reputable mortgage company? ›

Pennymac is rated 4.1 stars out of 5 overall by U.S. News, with 4.1 stars for affordability, 4.3 stars for customer service and 4.5 stars for eligibility. The median overall rating for all mortgage lenders rated by U.S. News is 4.2.

What is the PennyMac controversy? ›

PennyMac Financial Services has paid $158.4 million to Black Knight Servicing Technologies, concluding a five-year legal battle over allegations of trade secret theft involving two of the biggest companies in the housing industry.

How do I know if my mortgage lender is reputable? ›

There are several ways to check if a loan company is legitimate. First, check out the loan company on the Better Business Bureau (BBB) website. Do a quick online search and look up online reviews from independent companies like Trustpilot, if possible.

Where does PennyMac rank? ›

PennyMac was the third largest mortgage lender, the sixth largest mortgage servicer, and largest aggregator of residential mortgage loans in the U.S. in 2019.

Who is PennyMac owned by? ›

PennyMac was founded in 2008 with initial investments from BlackRock, HC Partners and the Company's founding management. Currently, approximately 20% of PFSI is owned by HC Partners, and 21% is owned by PFSI's executive officers and directors.

How do I file a complaint against PennyMac? ›

For questions or complaints about your loan, contact PennyMac Loan Services, LLC at 800-777-4001. The lender is licensed and examined under Texas law by the Office of Consumer Credit Commissioner (OCCC), a state agency.

What is the lawsuit against PennyMac? ›

The case dates back to November, 2019, when Black Knight Servicing Technologies sued PennyMac Loan Services in a Florida state court for more than $340 million in damages, alleging breach of contract and appropriation of trade secrets related to Black Knight's MSP Mortgage Servicing System.

Does PennyMac drop PMI? ›

Will Pennymac ever cancel my PMI? PMI will be terminated automatically if/when your loan reaches the midpoint of its amortization schedule (halfway through the life of your loan). For example, on a 30-year loan, the midpoint would occur after 15 years have passed.

Can you cancel a payment with PennyMac? ›

I may cancel or revoke a Transfer through Online Payments, by calling PennyMac at 1-800-777-4001, or by contacting the financial institution that holds my Funding Account. PennyMac is not responsible for Transfers that are processed before it has a reasonable opportunity to act on my revocation or cancellation request.

What not to say to a mortgage lender? ›

Here are three things to avoid saying so you don't raise red flags.
  • "The house is in bad shape." When you get a mortgage, the home is collateral for the loan. ...
  • "I'm still figuring out where my down payment money is coming from." ...
  • "I sure hope I can afford the payments after I quit my job next year."
Oct 1, 2023

What looks bad to a mortgage lender? ›

Don't open or close any credit cards

Your credit utilization rate (CUR), or the percentage of available credit you're using on revolving lines of credit, is another important part of your credit score. Closing a credit card could push you above the 30% rate lenders prefer.

How to spot a fake loan company? ›

How to spot a personal loan scam
  1. Do they ask for money upfront? You should never have to pay money before you get your loan funds. ...
  2. Are they using high-pressure sales tactics? ...
  3. Do they check your credit? ...
  4. Did they approach you about the loan? ...
  5. Do they have a physical address? ...
  6. Do you feel comfortable with the company?

Is Pennymac a good mortgage? ›

Pennymac excels in government-backed mortgages, including FHA loans, and makes it easy to shop for customized mortgage rates online. But average origination fees are higher than most lenders', and it does not offer home equity lines of credit.

Who is the #1 mortgage lender in America? ›

1. Rocket Mortgage. Rocket Mortgage -- formally Quicken Loans -- has been the largest mortgage lender by number of originations for years. In 2022, Rocket Mortgage originated 464,363 mortgages worth $127.6 billion, giving it a 5.5% share of the market by origination.

What kind of lender is Pennymac? ›

PennyMac Financial Services, Inc. (NYSE: PFSI) is a specialty financial services firm with a comprehensive mortgage platform and integrated business focused on the production and servicing of U.S. mortgage loans and the management of investments related to the U.S. mortgage market.

What kind of lender is PennyMac? ›

PennyMac Financial Services, Inc. (NYSE: PFSI) is a specialty financial services firm with a comprehensive mortgage platform and integrated business focused on the production and servicing of U.S. mortgage loans and the management of investments related to the U.S. mortgage market.

How many days do you have to pay your mortgage with PennyMac? ›

Payments are considered late if they are not received by the due date on your Note. Most Notes require payments to be made on the first day of the month with a 15-day grace period before a late fee will be charged.

How long does PennyMac underwriting take? ›

Underwriting mortgages is an essential part of the overall home loan process and generally takes about 30–60 days, depending on the type of loan, lender and current volume of borrowers.

Is PennyMac an FHA loan? ›

Pennymac is dedicated to making homeownership more affordable for everyone by enabling FHA borrowers to take advantage of historically low rates that will save them money on their mortgages every month.

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