- Features low interest rates
- Origination fee waived for many borrowers
- Online application process
- No physical branches
- Minimum credit score of 700 for jumbo loans
PennyMac at a Glance
|Direct Lender or Marketplace?||Direct lender|
|Loan Types:||Purchase, refinance|
|Featured Loans:||Conventional, Jumbo, FHA, VA|
|Repayment Terms:||15, 20, or 30 years|
|Minimum Down Payment:||3%|
|Minimum Credit Score:||580-700|
|Suitable For:||Low interest rates|
PennyMac is an online lender that offers low interest rates for new mortgages and mortgage refinancing. The lender supports a wide variety of mortgages, including conventional mortgages with 15-30 year terms, jumbo mortgages, and government-backed FHA and VA mortgages. The application process starts online but must be completed over the phone with a loan officer.
PennyMac is suitable for home buyers in search of low interest rates. The lender offers new 15-year fixed rate mortgages with rates as low as 2.173% APR. On top of that, PennyMac will waive its origination fee for most new loans, which could save you around $1,100.
Types of Loans/Products
PennyMac offers conventional, jumbo, and government-backed FHA and VA loans. Most loans require a 3% down payment, although you’ll need to put 20% down for a conventional loan if you want to avoid mortgage insurance. Conventional loans require a minimum credit score of 620, while FHA loans require a credit score of 580 and jumbo loans require a credit score of 700.
- APRs as low as 2.173%
- Down payments start at 3%
- 15- to 30-year terms
- Fixed or adjustable interest rates
The Application Process
PennyMac’s application process starts online. Just enter basic details about your home purchase or refinance, and a loan officer will get in touch with you by phone within a few minutes (during business hours).
You can be pre-approved in as little as a few minutes on the phone. All follow-up paperwork, such as bank statements, can be submitted online through PennyMac’s online account center.
PennyMac doesn’t have physical branches where you can apply for a loan in-person.
Rates and Fees – The Bare Basics
PennyMac offers low interest rates, depending on your financial history and the loan you’re looking for. A new 15-year fixed rate mortgage can carry a rate as low as 2.173% APR, while a 30-year fixed rate mortgage can have a rate as low as 2.749%.
PennyMac charges an origination fee of $1,100 for conventional loans and FHA loans. However, this is waived for most new mortgages. You also get 0.50% off your closing costs, bringing the typical closing cost for PennyMac mortgages down to around 1-1.5% for most mortgages.
PennyMac offers 15-, 20-, and 30-year mortgages. You can choose between fixed rate and adjustable rate terms.
Help & Support
PennyMac offers support by phone from 6:00 AM to 7:00 PM PT, Monday to Friday, and from 6:00 AM to 5:00 PM PT on Saturday.
Phone: 1-(888) 870-6229
How This Company Compares
|PennyMac||Rocket Mortgage||Quicken Loans|
|Repayment Terms||15-30 years||15-30 years||15-30 years|
|Minimum Down Payment||3% (20% to avoid mortgage insurance)||0% for VA, 3.5% for FHA, 20% for conventional loans||0% for VA, 3.5% for FHA, 20% for conventional loans|
|Minimum Credit Score||580-700||500-620||500-620|
|Suitable For||Low interest rates||Low minimum credit score||Customer service|
PennyMac offers low interest rates for new mortgages, plus waives its origination fee and reduces closing costs for many borrowers. The application process is fairly easy, although you will need to speak with a loan officer over the phone. PennyMac also stands out for requiring a down payment of just 3% for conventional mortgages, although you’ll need to purchase mortgage insurance if you put less than 20% down.
Can I upload documents online?
Yes, PennyMac has an online account portal where you can upload your supporting documents and manage your mortgage application.
Does PennyMac typically close on time?
Yes. PennyMac offers a $500 Visa gift card if your mortgage closes late.
Does PennyMac charge a prepayment penalty?
No, PennyMac does not charge a prepayment penalty. You can pay off your mortgage early to reduce interest payments.
Does PennyMac offer rate discounts?
You can get a discounted interest rate by paying to buy points when your mortgage closes.
3043 Townsgate Rd, Suite 200,
Westlake Village, CA 91361