PennyMac Mortgage Review

ByMichael GrawJul.15, 2021
This site is a free online resource that strives to offer helpful content and comparison features to its visitors. Please be advised that the operator of this site accepts advertising compensation from certain companies that appear on the site, and such compensation impacts the location and order in which the companies (and/or their products) are presented, and in some cases may also impact the scoring that is assigned to them. The scoring that appears on this site is determined by the site operator in its sole discretion, and should NOT be relied upon for accuracy purposes. In fact, Company/product listings on this page DO NOT imply endorsement by the site operator. Except as expressly set forth in our Terms of Use, all representations and warranties regarding the information presented on this page are disclaimed. The information which appears on this site is subject to change at any time.

In a Nutshell

PennyMac is an online mortgage lender with low rates and a low down payment program for first time home buyers. The company issues conventional, jumbo, FHA, and VA mortgages, and also handles mortgage refinancing. The application process can be started online and completed over the phone.


  • 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

Visit Site


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.

Suitable For?

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.

Repayment Terms

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

PennyMacRocket MortgageQuicken Loans
Repayment Terms15-30 years15-30 years15-30 years
Minimum Down Payment3% (20% to avoid mortgage insurance)0% for VA, 3.5% for FHA, 20% for conventional loans0% for VA, 3.5% for FHA, 20% for conventional loans
Minimum Credit Score580-700500-620500-620
Suitable ForLow interest ratesLow minimum credit scoreCustomer 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

Visit Site

AboutPenny Mac
“ ”
Top10 Score
Visit Site
“ ”
Top10 Score
Visit Site