One of the country’s largest nonbank mortgage loan originators and servicers, PennyMac Loan Services caters to both over-the-phone and online borrowers with great transparency and provides useful online tools for estimating your mortgage rate.
Mortgage Options & Rates
Whether you’re a first-time homebuyer or refinancing your home to save on monthly payments, PennyMac Loan Services has a variety of mortgage products to suit your unique financial needs. Your mortgage options include:
- Conventional loans. Low rates and no mortgage insurance required if your down payment is at least 20%.
- Jumbo loans. A non-conforming mortgage for purchase or refinance of high-value property.
- FHA loans. Popular with first-time homebuyers who have less money to put down on a new house and lack the credit history to qualify for a conventional loan.
- VA loans. For military service members and their families. Finance up to 100% of the home’s value without having to pay a monthly mortgage insurance premium.
- USDA loans. For borrowers who meet certain income requirements and who live in designated “rural” areas.
Current loan rates are published directly on PennyMac’s website.
Costco Member Discount
Since PennyMac is part of Costco’s mortgage lender marketplace, Costco members can qualify for a discount on loan origination fees. For Executive members, fees are capped at $350. For Gold Star and Business members, fees are capped at $650.
PennyMac does a great job of being transparent by providing its current rates directly on its website, while other lenders aren’t so keen on sharing that information.
PennyMac’s website includes a custom rate tool that lets you get precise and current quotes for both purchase and refinance loans. This feature saves you a good bit of time by providing accurate estimates for your purchase price, location and credit score. In contrast, other lenders will require your personal contact information in order to give you the same information over the phone.
PennyMac is licensed to originate and service mortgage loans in every state. You have the option to apply for a mortgage in person if you live close to one of PennyMac’s smaller call centers, which also acts as retail branches. These branches are located in:
- Moorpark, California
- Pasadena, California
- Roseville, California
- Honolulu, Hawaii
- Henderson, Nevada
- Plano, Texas
With regard to criteria like your credit score, income, debt-to-income ratio, or if you’re self-employed, PennyMac follows the requirements set by government-sponsored enterprises (GSEs) like Fannie Mae and Freddie Mac. The lender won’t go below the minimum requirements set by GSEs, but it will consider rent payment history, if necessary.
PennyMac doesn’t have a minimum loan amount, but the maximum loan amount depends on a variety of factors including GSE requirements, where you live, loan type, and the number of units in the property.
You can start the mortgage process with PennyMac by calling the company or by filling out a short form online. If you choose to fill out the online form, you will still have to speak to a loan officer via phone. It isn’t required to get a rate quote before starting the process, but you are welcomed to do so.
If you want to get pre-approved before you apply to increase your chances of making a successful offer on a home, you’ll want to speak directly to a loan officer instead of starting the process online.
After submitting your application, you can create an online account to complete and submit documents electronically. The account is compatible across mobile, tablet and computer devices. You’ll even be able to sign electronic disclosures and make mortgage payments with your online account once you’ve closed your loan.
If you’re comfortable with interacting with your loan officer by phone or email, or if you live close to one of its few offices, PennyMac Loan Services might be a good choice for you. It boasts excellent online tools for searching and comparing loans, well-trained loan officers, a relatively short refinance process and convenient online loan support.