Pennymac Mortgage Review: A Streamlined Web Option With Few Fees (2024)

FAQs

Pennymac Mortgage Review: A Streamlined Web Option With Few Fees? ›

For a conventional loan, Pennymac's low rates come at the cost of less than one point where other lenders sometimes charge two (one point is equal to 1% of your loan amount). You can pay less upfront and take a higher rate, which can be a good idea if you want to minimize your upfront cost.

Low closing costs: Pennymac says it has “low or no-cost” options for FHA streamline refinances, which might help if you have little savings to cover closing costs upfront. Mortgage rate available online: Pennymac publishes its current 30-year FHA mortgage rate online, making it easy to comparison-shop quickly.

PennyMac is one of the largest mortgage lenders in the U.S., offering a variety of mortgage loans to people in every state but New York.

Pennymac's fee for a recast is $250.00, which should be paid with the total principal payment. Are all loan types eligible for mortgage recast? Not all loan types are eligible for recast.

Pennymac will accept a FICO score as low as 620 for conventional loans, though the lender says that a conventional loan may be a good fit for a customer with a score of at least 680.

Benefits of a FHA Streamline Refinance

Not only does this save you the cost and hassle of getting an appraisal and worrying about whether it will be high enough, it also allows eligibility even if your loan is currently under water (i.e. your loan payoff amount is higher than your home's market value).

FHA Streamline closing costs are typically the same as other mortgages: 2 to 5 percent of the mortgage amount, which would equal $3,000 to $7,500 on a $150,000 loan. The difference is that you don't have to pay for an appraisal on an FHA Streamline, which could save about $500 to $1,000 in closing costs.

PennyMac Financial Services has paid $158.4 million to Black Knight Servicing Technologies, concluding a five-year legal battle over allegations of trade secret theft involving two of the biggest companies in the housing industry.

PennyMac was founded in 2008 with initial investments from BlackRock, HC Partners and the Company's founding management. Currently, approximately 20% of PFSI is owned by HC Partners, and 21% is owned by PFSI's executive officers and directors.

Pennymac is the second-largest FHA lender by loan volume in the nation — and is rated by Yahoo Finance as the best overall FHA lender. It's also on our list of the best VA loan lenders and you'll find Pennymac in our review of the best lenders for first-time homebuyers.

Can you negotiate mortgage lender fees? ›

Closing costs are an inescapable part of the mortgage process, but you can negotiate some of these costs. Negotiable closing costs include the loan processing fee, origination fee, title insurance and more.

Refinance closing costs commonly run between 2% and 6% of the loan principal. For example, if you're refinancing a $225,000 mortgage balance, you can expect to pay between $4,500 and $13,500. Like purchase loans, mortgage refinancing carries standard fees, such as origination fees and multiple third-party charges.

Refinances without closing costs are possible but can come with a higher mortgage rate, which can cost more in the long term. Borrowers can also negotiate a reduction in closing costs, including the lender, application, and processing fees.

Pennymac Correspondent is excited to announce that we're raising our Conventional loan limits to $750,000 ¹, effective Wednesday, October 11, 2023.

These mortgages are not backed by government entities like the FHA, VA, or USDA loans, but their guidelines come from Fannie Mae and Freddie Mac, the two agencies that regulate home loans in the U.S. Conventional mortgages come in two forms: fixed-rate mortgages and adjustable rate mortgages, or ARMs.

Pennymac receives a score of 592 out of 1,000 in J.D. Power's 2023 U.S. Mortgage Servicer Satisfaction Study. The industry average for servicing is 601. (A mortgage servicer handles loan payments.) Pennymac receives a customer rating of 4.37 out of 5 on Zillow, as of the date of publication.

The basic requirements of a streamline refinance are: The mortgage to be refinanced must already be FHA insured. The mortgage to be refinanced must be current (not delinquent). The refinance results in a net tangible benefit to the borrower.

Your current mortgage waiting period must be over.At least 210 days need to have passed since your original FHA mortgage was closed, and you'll also need to have made at least six payments, before you can move ahead with a streamline refinance.

For non-credit qualifying individuals, an FHA streamline may not affect your credit score because a credit report is not required. For credit qualifying individuals, the lender is performing a hard credit check that, like any loan, has the potential to temporarily affect your credit score by a few points.