Pennymac Mortgage Review 2026

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. Between June 2024 and June 2025, the lender originated $134 billion in home loans. It currently services mortgages with a collective value of $700 billion. 

Pros and cons of Pennymac

How Bankrate scored Pennymac

Affordability: 4.9 out of 5 stars

Pennymac’s APRs were lower than Bankrate’s average at the time of this review, netting the lender 4.9 out of 5 stars for affordability.

• Interest rates: Pennymac’s mortgage rates tend to be lower than national averages, although it’s important to factor in upfront costs: The rates advertised on the lender’s website assume you’ll prepay for points.
• 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 one-time fee of up to $250 to lock your rate. However, if you’re obtaining a purchase loan, you might be eligible for a $1,000 discount.

Availability: 5 out of 5 stars

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. (While the lender has 15 office locations, these aren’t available to mortgage borrowers wanting to apply.)

Borrower experience: 4.6 out of 5 stars

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 4.6 out of 5 stars for borrower experience.

• Preapproval and application process: You can start the preapproval process with Pennymac online 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. When we called Pennymac at the time of this review, we found the experience to be helpful and transparent. There was no wait time dealing with an automated bot — a refreshing break from experiences with other lenders. The representative wasn’t pushy, and provided the fee info we asked for.
• 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: Once you have an in-progress mortgage, you can reach Pennymac’s customer service team at 844-917-3669, Monday through Friday from 5 a.m. to 6 p.m. ET.

Pennymac reputation

Pennymac is an A+ accredited business with the Better Business Bureau, and it has an average rating on Trustpilot at the time of this review. The lender finished in last place in J.D. Power’s 2024 mortgage origination satisfaction survey with a score of more than 70 points below the industry average, but did earn above-average marks in 2025 for its ability to service loans.

What Bankrate users 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.

Refinancing with Pennymac

Pennymac offers rate-and-term and cash-out refinancing options. At the time of this review, it was providing an incentive for borrowers who are planning to buy now with the hopes of refinancing in the near-term future: $2,000 to those who refinance within the next three years.

• 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.