Waive $1,100 setup fee
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Types of loans offered
Compliant, FHA, VA
- Origination fees are waived on conventional and FHA purchase mortgages
- Instant quote tool makes it easy to get custom pricing
- Does not accept alternative credit data
- Requires a minimum score of 620 for its FHA mortgages
- Regular buyers need to pay 5% deposit
- Available in all states except New York
- Charges a $1,100 origination fee that may be waived on certain purchase transactions or an FHA streamlined refinance
- Minimum credit score and down payment shown are for conforming mortgages. Only first-time buyers are eligible for the 3% down payment; others must deposit at least 5%
Overall Lender Rating
Advantages and disadvantages
Pennymac Mortgage Interest Rates and Fees
Pennymac makes it easy 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 tailored to your situation. These personalized rates are based on the price and location of the property you are purchasing, the amount of your down payment and your credit score.
Pennymac charges a $1,100 origination fee on its conforming and FHA mortgages. However, if you buy a home rather than refinance it, or get a streamlined FHA refinance, you may be waived this fee.
Pennymac VA mortgages come with an origination fee equal to 0.95% of the loan amount. If you use a VA mortgage to buy a home, it will reduce that cost by $1,100.
Pennymac vs. Rocket Mortgage
To get personalized rates from Rocket Mortgage, you will need to start an application. Pennymac, on the other hand, lets you easily explore pricing without having to apply or create an account first.
Rocket Mortgage ranked #2 in JD Power’s 2021 Primary Mortgage Originator 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 doesn’t list any rates online, which makes it difficult to compare this lender with others if you’re not prepared to ask for pre-approval. In contrast, Pennymac’s quote tool makes it easy to get an idea of what your rate might look like.
If you’re a first-time home buyer, you may also be able to deposit less with Pennymac than with LoanDepot, which requires a minimum 5% down payment. Pennymac allows first-time home buyers to put down as little as 3%.
How Pennymac Works
Pennymac is an online lender that originates mortgages in every state except New York. It offers conforming, FHA, and VA mortgages.
If you’re a first-time home buyer, you might only be able to put 3% down on a compliant mortgage with Pennymac. Other borrowers will need to deposit at least 5%.
If you are considering getting an FHA mortgage, you will need a credit score of at least 620 to qualify with this lender. That’s higher than many other lenders charge on their FHA mortgages — typically, the minimum credit score is 580.
Pennymac does not 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 will need a decent credit score.
If you refinance with Pennymac, you will pay an origination fee of $1,100. If you get a VA mortgage refinance, the origination fee is equal to 0.95% of the loan amount. Origination fees are waived on Compliant and FHA Purchase Mortgages and FHA Streamlined Refinances, and reduced by $1,100 on VA Purchase Mortgages.
If you want to apply for a mortgage, you can do it online. You can also start by 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 in its business practices.
In JD Power’s 2021 Customer Satisfaction Study, Pennymac ranked below the industry average. However, the lender has good reviews on its Zillow profile.
What is Pennymac?
Pennymac is a private mortgage lender offering conventional and government guaranteed mortgages.
What are Pennymac’s prices?
You can see Pennymac’s sample rates on its website, or you can use its instant quote tool to get a custom rate.
Does Pennymac offer home equity loans?
No, Pennymac does not currently offer home equity loans or home equity lines of credit (HELOC).