Why It Made the Cut: PennyMac offers a large coverage area, varied rate-lock options, a fast and convenient online quote tool, and various online tools such as mortgage calculators, affordability calculators, and home valuation tools.
PennyMac has a lot going for it, starting with a large coverage area that includes Washington, D.C., and all states except New York. Also, borrowers who apply for and receive preapproval can qualify for a discount on their principal loan amount. The discount is 0.5 percent of the principal amount up to $5,000, which could help borrowers save money on their investment loan. In addition, customers can lock in their rate for 60, 75, or 90 days, giving them ample time to find an investment property after being preapproved for a loan. Longer rate-lock periods could protect borrowers from rising interest rates, which would mean paying less interest over the life of the loan.
PennyMac has fairly high eligibility standards borrowers must meet to qualify for a loan, including a good to great credit score (680 or above) and 6 months of cash reserves in their accounts, and only offers one loan type: a conventional loan. However, for customers who meet these qualifications and need this loan type, PennyMac may have the best rates and terms available.
The company’s website offers various online tools for borrowers to use, including mortgage calculators, affordability calculators, and home valuation tools, plus a convenient online quote tool, making it easier for borrowers to understand and apply for loans. The quote process doesn’t include a credit pull, which means the quote won’t appear on the applicant’s credit report and affect their credit score. The results break down different loan options comparing interest rates, monthly payments, and APR so borrowers can see how much they’ll pay for financing.
- Coverage area: 49 states and Washington, D.C.
- Minimum credit score: 680
- Loan options: Conventional fixed rate
- Application process: Online, phone
- Closing time frame: 21 days or more
- $5,000 potential discount on preapproved loans
- Lengthy 60- to 90-day rate-lock period options
- Convenient online quote tool
- User-friendly loan calculators and property valuation tools
- Relatively high loan-eligibility standards
- Somewhat limited financing options available