Pros and cons of PennyMac
Pros
- Pre-Approval Advantage program provides $1,000 off closing costs
- Buydown program reduces your interest rate by 1% during the first year
- Loyalty Refinance credit gives up to $2,000 when refinancing a PennyMac loan
- Home Connect program offers up to $9,000 in credits with a partner agent
- Lock & Shop feature lets you lock your rate while house hunting
Cons
- Origination fees tend to be higher than many competitors
- Poor customer reviews on Trustpilot and other review platforms
- Reports of unclear communication and surprise fees
- Some promotional savings tied to using PennyMac partner agents
PennyMac mortgage rates
While PennyMac interest rates often fall below the national average, its higher origination fees can offset some of those savings upfront. Over the long run, though, qualified borrowers may still come out ahead thanks to competitive rates and special home-buying programs. Here is an overview of current PennyMac mortgage rates in 2025.
| Loan Type | Average Interest Rate |
| Conventional 30-Year | 6.96% |
| Conventional 15-Year | 6.84% |
| FHA 30-Year | 6.07% |
| VA 30-Year | 5.68% |
Average rate and fee data sourced from public rate and fee records required by the Home Mortgage Disclosure Act (HMDA).
Remember that interest rates vary a lot by customer. Your own rate depends on factors like your credit score, down payment, loan type, and home price. That means you shouldn’t take average rates (or advertised rates) at face value. Instead, pick three to five lenders you’re interested in and get rate quotes from each one. Then compare the interest rates, closing costs, and other fees you’re offered to see which lender can give you the best deal.
Find your lowest mortgage rate. Start herePennyMac lender review for 2025
PennyMac continues to be a major player in the mortgage space in 2025, offering broad accessibility and a digital-first experience. The lender serves borrowers in every state and provides several perks that can lead to savings, especially if you’re open to using their partner network. PennyMac works well for borrowers who want lower-than-average interest rates and are comfortable managing most of their loan process online. However, it may not be ideal for those who prioritize in-person service or want the lowest possible upfront fees.
To qualify, PennyMac typically looks for a credit score of at least 620, though certain government-backed loans may offer more leniency. Borrowers can apply by phone or through PennyMac’s m.a.c portal, which allows you to upload documents, e-sign, and monitor your application from preapproval through closing. The average closing time for purchase loans is around 36 days. Closing costs usually fall between 2% and 6% of the loan amount, depending on your location and loan type. While PennyMac’s origination fees can be on the higher side, the lender does offer promotions like $1,000 off with preapproval and $2,000 off if you refinance a PennyMac loan within three years.
Affordability
PennyMac lands in the middle tier on The Mortgage Reports Affordability Index. While its origination fees are often higher than the competition, it offsets that with lower-than-average interest rates that may reduce your total cost over time. Eligible borrowers can take advantage of several programs, including $1,000 off closing costs with preapproval, a 1% rate reduction during the first year, and up to $9,000 in savings when using a PennyMac Home Connect partner agent. PennyMac also offers $2,000 off when you refinance a PennyMac loan within three years.
Lending flexibility
PennyMac offers a full suite of mortgage products, including conventional, jumbo, FHA, VA, USDA, and home equity loans. It provides loan options for borrowers with a range of credit scores and income levels. The lender operates in all 50 states and allows you to apply either online or over the phone. Whether you’re buying your first home or refinancing, you’ll likely find a loan that fits your needs.
Trustworthiness
Our analysis shows PennyMac receives an average number of complaints through the Consumer Financial Protection Bureau. It holds an A+ rating with the Better Business Bureau. While many borrowers appreciate its transparency and on-time closings, others report unexpected fees and inconsistent communication. Customer reviews on Trustpilot tend to skew negative, which suggests your experience may vary depending on your loan officer or support team.
Customer experience
PennyMac scores well when it comes to ease of use. Its m.a.c online portal lets you get a personalized rate quote, upload documents, e-sign forms, and track your application progress. You can also lock in your interest rate at preapproval with the Lock & Shop feature, which protects you from rising rates during your home search. The average time to close is 36 days, which is on par with the industry standard.
FAQs about PennyMac
PennyMac offers conventional, jumbo, FHA, VA, and USDA loans. It also provides multiple refinancing options, including rate-and-term, cash-out, and streamline refinance loans. If you want to access your home’s equity, you can choose between a home equity loan or a HELOC. Whether you’re buying, refinancing, or borrowing against your property, PennyMac has programs to fit a wide range of needs.
Yes, PennyMac offers several programs designed to reduce upfront costs and improve affordability. The Pre-Approval Advantage program provides $1,000 off closing costs when you get preapproved. The Buydown Program lowers your interest rate by 1% during the first year of your loan. If you refinance a PennyMac loan within three years, the Loyalty Refinance credit gives you up to $2,000. Homebuyers who work with a PennyMac Home Connect partner agent may also qualify for up to $9,000 in credits to use toward closing costs or a rate buydown.
You can apply online using the m.a.c portal or by phone. The online system allows you to upload documents, sign paperwork, and track your progress.
Yes, PennyMac often offers below-average mortgage rates. While its fees may run higher, the lower rates can result in long-term savings.
PennyMac typically requires a minimum credit score of 620 for conventional loans. FHA loans may be available to borrowers with scores as low as 580, while VA and USDA loans often accept similar ranges depending on other qualifying factors. Your actual eligibility may also depend on income, debt levels, and loan type.
Is PennyMac the best mortgage lender for you?
PennyMac suits borrowers who want competitive rates, digital convenience, and access to a wide range of loan options. While its upfront fees can be higher and reviews are mixed, the overall experience works well for people who are comfortable applying online and want rate protection while they shop. This PennyMac lender review shows that the lender remains a strong option for those prioritizing low rates and flexible programs over in-person service.
Find your lowest mortgage rate. Start hereHow The Mortgage Reports scored PennyMac
The Mortgage Reports evaluates and ranks lenders based on four key factors, each weighted to reflect its impact on the borrowing experience.
- Customer experience (20%): Examines the lender’s digital and service accessibility, including the availability of an online pre-approval or pre-qualification process, ease of contact, and the presence of a current rates page on their website.
- Affordability (20%): Assesses the average origination charges and the average interest rate offered by the lender.
- Lending flexibility (40%): Evaluates the lender’s minimum down payment and credit score requirements, as well as the availability of FHA, VA, and USDA loan options.
- Trustworthiness (20%): Measures customer satisfaction and reliability based on Consumer Financial Protection Bureau (CFPB) complaints per 1,000 loans and ratings from reputable third-party review platforms such as Trustpilot.
