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Pennymac Mortgage Review 2023

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At a glance

Pennymac

Editor's take

Pennymac appeals to borrowers looking for an experienced lender with a convenient online application process and nationwide presence. However, consistently below-average customer satisfaction is a concern.

Bankrate Score
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4.6
Rating: 4.6 stars out of 5
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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, fixed-rate, adjustable-rate; refinancing; home equity loan; investment property

Credit Good

Min. credit score required

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

Location

Nationwide availability

Available in all U.S. states

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Min. down payment

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

At a glance

Pennymac

4.6

Rating: 4.6 stars out of 5
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Bankrate Score

Mortgage Percent

Loans offered

Conventional, jumbo, FHA, VA, USDA, fixed-rate, adjustable-rate; refinancing; home equity loan; investment property

Location

Nationwide Availability

Available in 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. The lender is headquartered in Westlake Village, California, and was founded in 2008.

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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    Can connect you with concierge real estate services for up to $5,000 in rewards

Cons
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    No brick-and-mortar locations

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    Online information about loan costs limited

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    Below-average customer service score

Our Editor’s Take on Pennymac

Pennymac appeals to borrowers looking for an experienced lender with a convenient online application process and nationwide presence. However, consistently below-average customer satisfaction is a concern.

How Bankrate scored Pennymac

To determine Pennymac’s Bankrate Score, Bankrate’s editorial team rated it and other lenders on a scale of one to five stars based on a variety of factors relating to the lender’s products and services. (Bankrate’s partners compensate us, but our opinions are our own, and partner relationships do not influence our reviews.) We derived its overall score by considering three basic factors:

  • 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 its J.D. Power score ranked below average among large mortgage originators.

Affordability: 5/5

Affordability differs from lender to lender, so comparing costs is key. Pennymac’s loan offers are comparable to Bankrate’s average rates. 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: 4.3/5

This factor can make the overall mortgage application process smoother or more challenging. Pennymac is a national mortgage lender that does business with borrowers in all 50 states. Its loan offerings include conventional and government-insured 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: 4.7/5

Know what to expect when you work with a specific lender. 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 over 2,000 customer reviews. On Trustpilot, the lender has a rating of 3.1 out of five stars, considered “Average.” According to J.D. Power, Pennymac ranked below average in customer satisfaction in 2021 and 2022. Pennymac typically turns approvals around in three to five business days and currently averages 36 days to close on purchase loans. The typical borrower can expect to close within 30 to 45 days, according to the lender. 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 purchase loan or a refinance at Pennymac’s website, on its toll-free phone number 888-870-6229 or in person at one of the lender’s branch locations. 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 all types of refinancing: rate-and-term, cash-out and streamline refinancing (including USDA streamlined assist). As with a home purchase, you can start the refinance application process online.

Compare Pennymac to other lenders

Pennymac

Rating: 4.6 stars out of 5
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4.6

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LoanDepot
Rating: 4.4 stars out of 5
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4.4

Bankrate Score
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Read full review
Rocket Mortgage
Rating: 4.5 stars out of 5
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4.5

Bankrate Score
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Read full review

Loans offered

Conventional, jumbo, FHA, VA, USDA, fixed-rate, adjustable-rate; refinancing; home equity loan; investment property

Loans offered

Conventional, jumbo, FHA, VA, fixed-rate, adjustable-rate; rate-and-term and cash-out refinancing; construction and renovation loans

Loans offered

Conventional, jumbo, FHA, VA, fixed-rate, adjustable-rate; rate-and-term, cash-out and streamline refinancing; home equity loan; investment property; flex-term

Min. credit score required

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

Min. credit score required

620 for conventional loans, 700 for jumbo loans, 580 for FHA loans, 620 for VA loans

Min. credit score required

620 for conventional loans, 680 for jumbo loans, 580 for FHA loans, 580 for VA loans

Down payment

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

Down payment

3.5% for FHA loans

Down payment

3% for conventional loans; 10%-15% for jumbo loans; 3.5% for FHA; none for VA loans

Nationwide availability

Available in all U.S. states

Nationwide availability

Available in all U.S. states

Nationwide availability

All U.S. states

Pennymac customer ratings and reviews

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1.0

Rating: 1 stars out of 5

1 ratings

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This lender has 1 reviews.

Knowledge
Rating: 1 stars out of 5
Level of service
Rating: 1 stars out of 5
Professionalism
Rating: 2 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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