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Pennymac Mortgage Review 2024

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At a glance

Pennymac
NMLS: 35953
Editor's take

Pennymac is a well-known, national mortgage lender with a convenient online application process, among other benefits. In light of higher mortgage rates, the lender launched a home equity loan product that allows homeowners to take a lump sum from their equity. It consistently receives below-average customer satisfaction ratings, however.

Bankrate Score
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4.0
Rating: 4 stars out of 5
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Bankrate Score

Customer Rating
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1.0
Rating: 1 stars out of 5

1 ratings

Mortgage Percent

Loans offered

Conventional, jumbo, FHA, VA, USDA, refinancing and more

Credit Good

Min. credit score required

620 for conventional loans, 580 for FHA loans, 620 for VA loans

Location

Nationwide availability

All U.S. states

Dollar Coin

Min. down payment

3% for conventional loans, 3.5% for FHA loans, none for VA loans and USDA loans

At a glance

Pennymac

NMLS: 35953

4.0

Rating: 4 stars out of 5
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Bankrate Score

Mortgage Percent

Loans offered

Conventional, jumbo, FHA, VA, USDA, refinancing and more

Location

Nationwide Availability

All U.S. states

Credit Good

Min. credit score required

620 for conventional loans, 580 for FHA loans, 620 for VA loans

Pennymac overview

Pennymac is a publicly traded direct mortgage lender and servicer offering a range of loan options, including low-down payment loans and refinancing. Although there are sales office locations, you can only apply for a loan with this lender online or by phone. Once preapproved, you’ll be matched with a loan officer who serves as your point of contact through the underwriting and closing process, which currently averages 36 days for purchases. The lender also features special offers periodically, and can help borrowers facing hardship or those who are ineligible to refinance with a loan modification.

Pros and cons of Pennymac

Pros
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    Large lender with national presence

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    $1,000 off closing costs if preapproved (not applicable to jumbo loans or refinancing)

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    Concierge real estate services with up to $5,000 in rewards

Cons
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    No branch locations

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    Below-average customer service score

Our Editor’s Take on Pennymac

Pennymac is a well-known, national mortgage lender with a convenient online application process, among other benefits. In light of higher mortgage rates, the lender launched a home equity loan product that allows homeowners to take a lump sum from their equity. It consistently receives below-average customer satisfaction ratings, however.

How Bankrate scored Pennymac

  • Affordability: Pennymac’s mortgage rates are in line with Bankrate’s averages, so you might be able to find more competitive options elsewhere. Like many other lenders, it also charges an origination fee.
  • Availability: Pennymac is licensed to lend to borrowers in every state and offers a deep bench of loan products for a variety of needs.
  • Borrower experience: Pennymac consistently ranks among the most active lenders, but J.D. Power ranked it below average among large mortgage originators.

Affordability: 5.2/10

Pennymac’s loan offers were comparable to Bankrate’s average rates at the time of this review. The lender displays daily APRs on its website, where you can also supply your contact information to get a custom quote. Its lender fees include an origination fee, rate-lock fee and other closing costs.

Availability: 10/10

Pennymac is a national mortgage lender that does business with borrowers in all 50 states. Its loan offerings include conventional and government-backed loans (FHA, VA and USDA), as well as home equity loans and refinances. The lender requires a minimum credit score of 620 for a conventional loan or VA loan, but as low as 580 for an FHA loan.

Borrower experience: 8.5/10

Pennymac has been in operation since 2008 and since become one of the 15 largest mortgage lenders in the U.S., funding $1 trillion in loans for more than 4 million borrowers. It is an A+ accredited business with the Better Business Bureau, with 4.4 out of five stars based on more than 1,900 customer reviews. On Trustpilot, the lender has a rating of 2.3 out of five stars, considered “Poor.” Pennymac ranked below average in J.D. Power’s customer satisfaction study in 2021, 2022 and 2023. Using the lender’s m.a.c portal, you can get prequalified or preapproved, complete your purchase or refinance application, upload documents and check on the status of your loan. You can also e-sign documents and disclosures through this system.

How to apply for a mortgage with Pennymac

You can apply for a mortgage with Pennymac online or by phone at 888-870-6229. Here are some tips to prepare for the process:

  1. Check your credit report. It’s important to check your credit report before your lender does, in case there are errors that could impact not only whether you get preapproved but also your ability to get the best mortgage rate. Knowing your credit score also helps you decide what type of loan to apply for. If your score is in the very low 600s, for instance, an FHA mortgage might be best for you, as its standards are more lenient than those for conventional loans.
  2. Gather personal and financial documents. With any lender, you must supply documentation about your income, assets and debts. This includes pay stubs and W-2s and account and loan statements.
  3. Provide details about the property. You’ll need to provide the address of the home and submit to an appraisal. (If you’re refinancing, you might or might not need an appraisal.)

Refinancing with Pennymac

Pennymac offers both rate-and-term and cash-out refinancing options.

Pennymac customer ratings and reviews

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NMLS: 35953

1.0

Rating: 1 stars out of 5

1 ratings

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This lender has 1 recent reviews.

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Level of service
Rating: 1 stars out of 5
Professionalism
Rating: 1 stars out of 5
Responsiveness
Rating: 1 stars out of 5
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0% of customers would recommend this lender.

of 1 reviews

The consumer reviews posted on Bankrate.com ("Bankrate") are individual, subjective opinions of reviewers, and not of Bankrate. Bankrate does not endorse any of the opinions expressed by reviewers or any responses to reviews.

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