Pennymac Mortgage Review 2025

Pennymac overview

Pennymac is a large mortgage lender and servicer founded in 2008 and headquartered in California. It offers the full array of mortgage types, with opportunities for multiple discounts you might be able to take advantage of.

Pros and cons of Pennymac

How Bankrate scored Pennymac

Affordability: 3.3/5

Pennymac’s APRs were higher than Bankrate’s average at the time of this review, netting the lender 3.3 out of 5 stars for affordability.

• Interest rates: Pennymac’s mortgage rates tend to be slightly higher than average.
• Down payment: Pennymac offers FHA loans with a 3.5 percent down payment, conventional loans with 3 percent down and VA and USDA loans, which don’t require a down payment.
• Closing costs: Pennymac charges an origination fee, plus a non-refundable fee of $595 to lock your rate. However, if you’re obtaining a purchase loan, you might be eligible for a $1,000 discount.

Availability: 5/5

Pennymac works with borrowers nationwide on a wide range of loans, including options for those with lower credit scores. These factors add up to a perfect 5 out of 5 stars for availability.

• Home loans offered: Pennymac offers conventional, jumbo, FHA, VA and USDA loans and more.
• Footprint: Pennymac is available to eligible borrowers in all U.S. states.
• Where to find: You apply for a mortgage with Pennymac online or by phone.

Borrower experience: 4.3/5

Pennymac makes it easy to find personalized rates on its website, but the lender has received poor ratings from some customers, too. We gave the lender 4.3 out of 5 stars for borrower experience.

• Preapproval and application process: You can start the preapproval process with Pennymac online using the lender’s m.a.c portal or over the phone. (The portal also allows you to complete your application, upload documents, check on the status of your loan and e-sign.) Once preapproved, you’ll be matched with a loan officer who serves as the point of contact throughout underwriting, which currently averages 36 days for purchase loans.
• Transparency: Pennymac offers a customizable rate quote tool on its website, so you can get a detailed estimate based on your location, down payment, credit score and more.
• Customer service: You can reach Pennymac’s customer service team at 844-917-3669, Monday through Friday from 8 a.m. to 9 p.m. ET. Note that these hours might differ depending on whether you’re starting a new loan or calling about a loan in progress.

Pennymac reputation

Although Pennymac is an A+ accredited business with the Better Business Bureau, it had a “bad” rating on Trustpilot at the time of this review, and ranked below-average in J.D. Power’s 2023 mortgage origination satisfaction survey.

What consumers say about Pennymac

On Bankrate, Pennymac has received average reviews with mixed feedback. On the positive side, borrowers appreciate the ease of working with the lender and its transparency on rates and fees. Some borrowers also cite on-time closings and good rates. Still, several others complain about additional fees, rude staff and poor communication.

Pennymac special offers

Pennymac Home Connect

Pennymac Home Connect is a partnership with HomeStory Real Estate Services that provides you up to $9,500 if you work with a HomeStory broker on your home purchase or sale.

One year at 1 percent savings

If you purchase a home with a Pennymac mortgage, you might be eligible to get 1 percent off your interest rate for the first year (a temporary buydown). This offer isn’t eligible for jumbo or VA loans, nor adjustable-rate mortgages (ARMs).

Refinancing with Pennymac

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

How to apply for a mortgage with Pennymac

You can apply for a mortgage with Pennymac online or by phone at 888-870-6229.

• Methodology

  To determine a mortgage lender's Bankrate Score, Bankrate rates lenders on a scale of one (1) to five (5) stars — with five (5) the highest rating — based on a variety of factors relating to the lender's products and services. To assign our ratings, we assessed each mortgage lender across three core areas:

  • Affordability: Annual percentage rate (APR) - 80%; assistance for first-time homebuyers - 10%; down payment - 10%

  • Availability: Loan products - 50%; licensing - 40%; credit score - 10%

  • Borrower experience: Rate transparency - 35%; customer service - 35%; convenience - 20%; rate locks - 10%; reputation (if applicable)

  Learn more about our methodology.