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LAST UPDATED: September 6th, 2022

PennyMac, founded in 2008, services all 50 U.S. states and is ranked as a top three lender in the nation. It has serviced upwards of $400 billion in loans and helped over 1.8 million homeowners buy or refinance their homes.

Offering home purchasing and refinancing services, PennyMac can be a good option whether you’re looking for a conventional mortgage, a FHA mortgage or VA mortgage, offering competitive rates as low as 2.0 percent and 2.246 percent APR*.

As a direct online lender, PennyMac services all loans it originates, potentially saving you more time and money, and ensuring personalized service and care for whatever stage of life and the home buying journey you are in.

PennyMac is currently offering two special promotions to borrowers:

  • 0.50% Lender Credit — Pre-approved customers get 0.50% of the loan's principal amount applied as a discount to closing costs. Customers must have been pre-approved before locking any purchase loan.
  • $0 Lender Fee ($1,100 savings) — $1,100 origination fee is waived on both conventional and FHA loans. Original fee is reduced by $1,100 for VA loans.

*These rates are for a conventional 15-year fixed rate.

Continue reading for a complete review of this mortgage loan lender and PennyMac reviews from real customers.

Top Ranked Companies


The Good

  • Online Lender
  • Variety of Loan Types
  • Competitive Industry Rates
  • Mortgage Relief and Assistance
  • Free Mortgage Calculators

Online Lender

PennyMac is completely online, streamlining the application, funding, and payment processes. Online services are convenient and can save you more time, but PennyMac does not have any brick-and-mortar locations, which may be a drawback if you prefer the option to speak with someone face to face about your home loan. However, PennyMac representatives and loan officers can be reached via phone if you would like to speak to someone about your loan.

PennyMac’s online services include helpful mortgage calculators and home value estimators that can quickly generate rates, costs, and other dollar amounts for you. You can also make payments online, and even set up auto pay, relieving the stress of ensuring that your payments are made on time each month.

Variety of Loan Types

PennyMac has a variety of home loan products to meet the needs of the majority of homeowners or homebuyers:

  • Conventional fixed rate mortgages
  • Adjustable-rate mortgages (ARMs)
  • FHA loans
  • VA loans
  • USDA loans
  • Investment property loans
  • Cash-out refinancing

These home loan products are among the most common in the industry, making it easier to find what you are looking for.

Competitive Industry Rates

As a direct lender, PennyMac offers lower-than-average rates. The current average rate for a 30-year fixed rate mortgage is 3.99 percent.

PennyMac’s rate offerings include:

Conventional Mortgage

  • 15-year fixed — 2.0% and 2.246% APR
  • 20-year fixed — 2.625% and 2.768% APR
  • 30-year fixed — 2.750% and 2.872% APR

FHA Mortgage

  • 15-year fixed — 2.375% and 3.795% APR
  • 20-year fixed — 2.375% and 3.775% APR
  • 30-year fixed — 2.375% and 3.614% APR

VA Mortgage

  • 15-year fixed — 2.625% and 3.440% APR
  • 20-year fixed — 2.500% and 3.154% APR
  • 30-year fixed — 2.500% and 2.957% APR

It is important to note that rates you will receive will be dependent on your financial background and credit score; the higher your credit score the lower the interest rate you could receive.

Mortgage Relief and Assistance

PennyMac understands that circumstances may arise that can make it difficult to make your payments. To help keep people in their homes, PennyMac offers several mortgage relief programs to help meet the needs of a wide range of customers.

Some of these relief options include:

  • State-funded assistance
  • Loan modifications
  • Forbearance plans
  • Property damage assistance

It is important to note that foreclosure occurs when all other options have been exhausted. Servicers and lenders like PennyMac are not in the real estate business and want to help you make your monthly payments, and will work with you accordingly.

Free Mortgage Calculators

PennyMac has a variety of mortgage calculators that can help you see what loan amounts you may qualify for, monthly payment estimations, whether or not you should refinance, and whether or not you’d be better off buying or renting a home. You can even check the value of your home by entering your address and postal code.

These calculators are free and make it easy to see what options are available to you. To use the calculators you are not required to enter your social security number (SSN) and no credit pull will be performed; they are purely for educational purposes.


The Bad

  • Fees


PennyMac charges an origination fee and a rate-lock fee in addition to closing costs. Closing costs may include a handful of fees, but these will be dependent on your location and the loan product you have selected.

Most lenders in the mortgage industry have a handful of fees, but if you would like to avoid more fees than not, it would be wise to research and compare other lenders. That being said, PennyMac encourages borrowers to talk to a loan officer about fee details, allowing you to see if there are options to minimize costs upfront.


The Bottom Line

PennyMac is a trusted servicer in the mortgage industry, providing standard loan products with competitive rates. As a direct mortgage lender, PennyMac is committed to working with you based on your background and particular circumstances.

With an online application, funding, and payment process, you can easily manage your loan through your PennyMac account. Even before applying for a loan, you can check your rates and monthly payments with helpful mortgage calculators that do not require any personal information and have no impact on your credit score, helping you decide if a PennyMac mortgage is for you.

If you have trouble making your payments, PennyMac has solutions and options to help you, and it is committed to keeping people in their homes.

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41 Reviews

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David Ketchikan, AK

I was in the hospital with covid and complications from covid. Jan 23, 2022 I was life flighted out of Ketchikan AK to Anchorage AK, 775 miles away and no cell phone. I had large blood clots in my heart and lungs. I was in critical condition. So, after heart surgery I have lost part of my right lung. Now I was 30 days late JAN and FEB with my house payment. As my wife tried to figure out our finances. While we were over 700 miles apart. Penny Mac was not understanding at all and would not remove negative remarks from my credit report. All of my other creditors helped me out by removing the negative reports on my credit record. PennyMac is the only negative remarks on my credit record. My credit score is over 750 right now. They are not understanding at all. Even with proof. I'm a 100% P&T disabled veteran. I currently live in a three-story house, and now I am unable to get a loan for a home, that does not have stairs and the other ADA things I need, because of the remarks from Penny Mac. I have to wait a year to move, no one will give me a loan until then. Here in Ketchikan AK, there are very few medical facilities to meet my medical needs

1 year ago

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kelly meeks Norcross, GA

We had a tornado hit our house in April Penny Mac has had the insurance check since July 14th. We have only gotten a small amount from them, my contractor has had to quit working because hes done 35,000 in work so far only been paid 10,000 from PM. I keep a spread sheet of who i talk to when, how long Ive spent 6 hours trying to get them to send money and its always a different story always in process. Talked to 3 supervisors in the past week was promised by 1 that a check was going out yesterday overnight PM expense. Guess what no check. Still in process. Im so done with them holdind my money and we are running out of insurance housing money At end of the month Our contractor could have been finished by now After 2 hours on phone today with 4 different people the last supervisor said she would call before she left for the day Guess what still no call. We are over PM. Todays events; PM finally released a little more of our money and sent out Friday by fed ex overnight to deliver monday 8/17 by 430 pm I watched the tracking site all day and it was out for delivery. We was at the house awaiting this check but it never arrived. Checked the tracking again and it showed exception wrong address on envelope REALLY??? sent us a check 3 weeks ago but couldn't get address right this time? Now fed ex is returning to pennymac and we and our contractor are still waiting This is ridiculous!! I called this afternoon when i found this out and after 27 minutes on hold trying to talk to a supervisor in claim resolution they were all busy but they promised me a call back before end of the day.guess what? NO CALL BACK WHAT A SHOCKER!! Ive spent nearly 8 hours on the phone since July 20th trying to get our money to complete our house. I am having to delay back surgery again because of this. Our contractor could have completed everything 2 or 3 weeks ago if he had the funds. Well back on the phone again tomorrow am. Ive heard from several that filing claims from home damage and getting your money from Penny Mac is a horrible experience and I agree. We just want to go home!!

3 years ago

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Mark G Sparks, NV

Horribly slow customer service. I have excellent credit (over 780) no late payments and the process has taken over 95 days for a refi and I still have no closing date scheduled. Form letter status updates contain no specific info. Wonder what is going on...can't get a straight answer.

2 years ago


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Luke Swierczynski Troy, MI

Honestly would give a lower rating if possible. They were all but nearly unresponsive to any questions or concerns I had when seeking loan information. After I stated I was going with another competitor I began getting a massive influx of robo calls to refinance. Hope I never deal with them again. All I can really say is avoid this company, because it's a big time suck.

2 years ago Edited February 2, 2022

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Rickey Vickery Hartwell, GA

Terrible experience. They bought my mortgage and will not recognize payment. You cannot discuss with anyone as the wait is 45 minutes and the response on emails is terrible. I would give them a 0 if possible

3 years ago