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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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Review Source

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Victoria Phillips Fort Worth, TX

I've had a very good experience with pennymac. When I bought my home in 2014 my loan was sold to them. A few months ago they called me offering a streamline refinance. That wasn't as streamline as anticipated, but we got thru it and closed a couple of weeks ago. I'll be saving almost $200 a month!

1 year ago

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James Davidson San Antonio, TX

Very easy to work with, very good customer service on every phone call I've made. They also have a user friendly website.

3 years ago


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Shailyn Gainesville, GA

I had no issues with PennyMac with my previous home. The only thing that was annoying was the junk mail. Customer service was always nice and helpful.

2 years ago


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tomeka lee Warner Robins, GA

PennyMac has been a great for me ease of paying through the app all information in one spot. Allow 10 day grace period for paying Mortgage before late fees occur

2 years ago


Review Source

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Kristen Smith Corpus Christi, TX

Getting approved was a bit of a hassle but all worth it.great rates easily navigable website

1 year ago Edited January 17, 2023

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Nathan Brewer

they gave us a fair rate on our refinance.

5 years ago