Pennymac Mortgage Review 2023

GOBankingRates Score

GOBankingRates Best Banks 2023 scores and rankings are objectively determined by our research/editorial team. Our scoring formula weighs several factors that differ from category to category depending on what consumers want from varying products and banks.
Quick Take: PennyMac is an American financial services company that's currently celebrating its 15-year anniversary. Although the company is relatively young, it has quickly grown to become one of the most trusted mortgage lenders on the market, offering equal housing, affordable loans and a positive borrower experience.
  • Affordability
  • Availability
  • Borrower Experience
  • Variety of Loan Types
How did we calculate this?

PennyMac Mortgage Overview

PennyMac is a relatively new mortgage company, but it has nevertheless quickly made a name for itself. Customers across the board seem to love the company, as evident by its A+ rating with the BBB. 

PennyMac offers equal housing opportunities, competitive rates, plenty of lending options and promotions that are hard to turn down. For example, the company offers 1% off your interest rate for your first year. For the average home price of $516,500, that’s a savings of about $5,000 in your first year. 

Key Features

It’s important to consider the key features of any mortgage company before you apply. Here are the details around some of PennyMac’s most important features. 


PennyMac mortgages are highly affordable. Even as the Federal Reserve aggressively raises rates to combat inflation, PennyMac’s rates have been highly competitive. 

The company also charges competitive loan origination fees of around 1%. That’s important to note because PennyMac also gives you 1% off your interest rate for the first year, making your 1% loan origination fee, for the most part, a wash.  


PennyMac mortgages are highly available for two reasons:

  • Equal Opportunity: The company is an equal opportunity lender. That means PennyMac won’t turn you down because of your race, ethnicity, religious beliefs or sexual orientation. 
  • Credit Requirements: You may qualify for an FHA loan with PennyMac even if your credit score is only 500. 

Borrower Experience

If you ever want to know what your experience is likely to be with a lender, just look at reviews. If most consumers report an enjoyable experience, yours is likely to be enjoyable as well. You can expect your borrowing experience at PennyMac to be a positive one. Just check out the company’s ratings on popular review websites:

  • BBB: A+
  • Zillow: 4.38
  • CreditKarma: 4.4

Variety of Loan Types

There’s no shortage of loan options at PennyMac. The company offers just about every mortgage loan type you can think of, including:

  • Conventional home loans
  • Adjustable rate mortgages
  • Jumbo home loans
  • FHA home loans
  • USDA Streamlined-Assist refinance
  • VA home loans
  • Investment property loans
  • Home equity loans

How PennyMac Mortgage Stands Out

PennyMach Mortgage stands out for a couple of reasons:

  • Bonus: The bonus 1% savings the company offers means you’ll get much of your loan origination fee back through discounted payments. 
  • Loan Options: Many lenders focus on one or two different types of loans. PennyMac has a loan option for just about anyone. 
  • Credit Requirements: You may be able to get a mortgage with a 500 credit score. That’s difficult with other financial institutions.  

Comparable Mortgage Options

PennyMac isn’t the only mortgage lender to choose from. If this isn’t the company for you, you might consider one of the competitors below. 


Chase is a popular financial institution that offers a wide range of banking services, including mortgages. Though PennyMac’s prices are competitive, your mortgage may actually be lower with Chase if you have previously used its services. Chase offers relationship discounts that could save you half a percentage point on your mortgage rates for the life of the loan.

Flagstar Bank

Flagstar Bank is another popular mortgage lending option. The company has a wide range of competitive home loans to choose from. In fact, Flagstar offers home renovation loans, one of the few types of loans that PennyMac does not offer. So, if your home is in need of a facelift, consider getting your loan through Flagstar Bank.  

How To Apply

You can apply for a PennyMac mortgage in one of two ways:

  • Call: You can call (844) 917-3669 to work with a PennyMac representative. This is the best option if you’d like help through the application process.
  • Online: You can also apply online on the PennyMac website. However, you’ll need to log in to do so. If you don’t already have a PennyMac account, you’ll need to create one. 

Who PennyMac Mortgage Is Best For

PennyMac mortgages are a great option for just about anyone who’s in the midst of a house hunt or considering a home equity line of credit. The company offers competitive interest rates and other perks that make it a clear choice over many of its competitors. 

In fact, it’s easier to talk about who PennyMac isn’t for since that list is far smaller. If you’re looking for a home renovation loan, you’ll need to look somewhere else. Otherwise, PennyMac is a great choice. 

Final Take

If you’re in the market for a new house and you’re not sure which lender to choose, PennyMac is a great place to start. The company offers competitive rates and plenty of perks to make your new purchase even more exciting. 


Find the answers to some of the most common questions about PennyMac below.
  • Is PennyMac a good company?
    • Yes, PennyMac has an A+ rating with the BBB , a 4.38-star rating on Zillow and a 4.4-star rating on CreditKarma.
  • Who funds PennyMac?
    • BlackRock Mortgage Ventures, LLC and HC Partners, LLC fund PennyMac mortgages.
  • Is PennyMac federally backed?
    • PennyMac is a lender of the FHA, a lender and servicer of the VA and a lender of the USDA, all of which are federal agencies.
  • How do I pay my PennyMac bill by phone?
    • Call (800) 777-4001 to pay your PennyMac bill by phone. You can also set up paperless payments through the PennyMac website.

Data is accurate as of Aug. 8, 2023, and is subject to change.

Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.

Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.


See Today's Best
Banking Offers