Making your mortgage payments in a timely fashion is one of your most important obligations as a homeowner and customer of PennyMac. We have a number of ways for you to make your payments.

By mail: Please complete and detach the payment coupon at the bottom of your monthly statement and mail your payment using the pre-addressed envelope. If you have misplaced or did not receive your statement, please send your check, including your loan number on the memo line, to:

Overnight Mail Payment Address: Overnight couriers, such as FedEx and UPS, will not deliver to P.O. boxes. Please use this address when selecting such a courier:

By phone: Contact one of our Loan Specialists at (866) 586-9210 to pay your mortgage immediately over the phone.

One-Time Online Payment Service: Use this quick and convenient online payment option to make a one-time mortgage payment directly from your checking or savings account using Electronic Funds Transfer. Access this option by going to the My Account tab of PennyMacUSA.com. After you register/login, click on “Loan Servicing Center,” followed by “One-Time Draft.” Follow the instructions from there.

Western Union Quick Collect: Use Western Union to ensure immediate receipt of your payment. Call (800) 325-6000 to find the nearest Western Union location. Western Union will charge you a fee for this service. Complete a Quick Collect Payment form with the following information:

Automatic Monthly Payments: ACH is a convenient, economical and efficient way for you to make your monthly mortgage payment. No checks, no stamps, no worry. Using this method, your payments are automatically deducted every month on the date that you choose. There are two ways to sign up for this service:
1. Manual Application: Fill out this short ACH application, fax or mail it to us as instructed on the application.
Or
2. Online Application: go to the “My Account” tab of PennyMacUSA.com. After registering/logging in, click on “Loan Servicing Center,” followed by “Auto Draft Payment.” Follow the online instructions from there.

Yes, you have the option to make extra principal payments. Clearly detail the amount of the extra principal payment on your payment coupon. Your loan must be current with no outstanding fees before an extra principal payment will be applied. The benefit of making extra principal payments is that your account will mature sooner resulting in less interest being paid over the life of the loan.

Send a written request signed by all borrower(s) to:

Or call our Customer Service Department at (866) 586-9210.

To order a payoff statement, contact our Customer Service Department at (866) 586-9210. Please be sure to include delivery information (Company name, fax number etc.). Our turnaround is approximately 24 to 48 hours. You may also mail your request to:

Send a written request signed by all borrower(s) to:

Or call our Customer Service Department at (866) 586-9210.

Once your loan has been paid in full, the escrow/surplus balance (if any) will be refunded to the mailing address on our system approximately fifteen - 15 business days from the date of the payoff transaction. If you are moving, please be sure to provide any change of address at the time of loan payoff.

If PennyMac collects escrow for payment of your real estate taxes, please send tax bills you receive to:

If PennyMac does not escrow for payment of your taxes, you are responsible for payment of your taxes directly to your taxing authority. Failure to pay these taxes in a timely manner may result in tax advances, increased payments, liens or tax sales.

If you are not sure whether PennyMac collects escrow for payment of your taxes, please contact Customer Service at (866) 586-9210.

If PennyMac does not escrow for payment of your insurance, you are responsible for payment of your premium directly to your agent/carrier. Failure to pay these premiums in a timely manner may result in PennyMac purchasing to protect our interest in the property which will increase your payment amount.

If you are not sure whether PennyMac collects escrow for payment of insurance premiums, please contact Customer Service at (866) 586-9210.

Insurance Loss Settlement checks will be made payable to you and PennyMac. Call one of our Customer Service Representatives at (866) 586-9210 when you receive an estimate of damages and/or a settlement check. We will provide information for the proper negotiation and settlement of the claim check. Failure to follow this procedure can subject the borrower to liability.

An ARM loan (Adjustable Rate Mortgage) is a mortgage where the interest rate is not fixed, but changes during the life of the loan in line with movements in an index rate.

The margin is the number of percentage points the lender adds to the index rate to calculate the ARM interest rate at each adjustment.

With an adjustable rate mortgage, the exact amount of future monthly payments may be uncertain. Some types of ARM loans have a ceiling on your payment increase or interest-rate increase from one period to the next.

Most ARM loans calculate the interest rate by adding a margin to the index.

The frequency with which your interest rate may change is called the ARM adjustment period. The most common ARM adjustment periods are every 6 months or 12 months. The frequency of ARM adjustments will be outlined in your ARM Note.

The Adjustment Date is the day when the interest rate changes on an adjustable rate mortgage (ARM). After an initial period where an ARM loan interest rate remains the same, the rate changes on the adjustment date to reflect the new ARM loan rate. The ARM loan rate will then continue to adjust over the life of the loan.

The limit on how much the interest rate on an adjustable rate mortgage (ARM) can go up. Most ARM loans have two types of interest rate caps:

(1) Lifetime caps, which are required by law, limit the increase of a rate over the full course of a loan. A 6% lifetime cap, for example, means the rate cannot go beyond 6% points over the initial rate. A lifetime cap is also referred to as a ceiling. Some loans also have a "floor," which limits the decrease of a rate over the full course of a loan.

(2) periodic caps, which limit the rate change from one adjustment period to the next, even if the market interest rates significantly rise or fall during this time.

An economic indicator that lenders use to set an adjustable rate mortgage's interest rate. Each ARM loan is tied to a specific index. Since some indices move up and down faster than others, it's a good idea to know which index is connected to your ARM. Some common indexes are:

• Constant Maturity Treasury (CMT or TCM)
• Treasury Bill (T-Bill)
• 12-Month Treasury Average (MTA or MAT)
• Certificate of Deposit Index (CODI)
• 11th District Cost of Funds Index (COFI)
• Cost of Savings Index (COSI)
• London Inter Bank Offering Rates (LIBOR)
• Certificates of Deposit (CD) Indexes
• Bank Prime Loan (Prime Rate)

CMT, COFI, and LIBOR indexes are the most frequently used. Approximately 80 percent of all the ARMs today are based on one of these indexes.

The starting interest rate of an adjustable rate mortgage (ARM). The initial interest rate on an ARM loan is fixed for a certain period then adjusts to reflect overall market rates. Fixed rate loans, on the other hand always have the same interest rate for the life (i.e. the full term) of the loan.

An escrow account (also known as an impound account) is an account established to help borrowers pay property taxes and insurance premiums for your mortgaged property. Deposits are made to the escrow account through monthly payments made in addition to the principal and interest amounts due. Note that payments of supplemental tax bills may not be paid from your escrow account. Please pay any supplemental tax bills directly to the taxing authority.

You should not confuse this type of escrow account with the escrow account for loan closing that may have been established by you and the Seller when you purchased your home.

You may contact Customer Service for detailed instructions on how to set up an escrow account by calling (866) 586-9210. Escrow accounts can be set up at the loan closing or any time thereafter.

This is the amount of money in your escrow account available to pay taxes or insurance for your property. The escrow balance can be found on your monthly billing statement.

The amount of money applied to your escrow account is determined by the amount needed to pay your taxes and or insurance on a yearly basis. This amount will change when the amount needed to pay these items either increases or decreases, or the scheduled payment for the last year has not been met. You can find the amount of your escrow payment on your monthly billing statement.

With an escrow account, you do not have to worry about paying a large tax or insurance bill in one lump sum when they come due. PennyMac will always ensure that your taxes and insurance are paid when they become due. You do not have to worry about budgeting for these items.

In the activity section of your billing statement you will see what was paid, how much and when it was paid. Payments made will only be reflected on the billing statement sent the month following the payment. Also you will receive a detailed annual escrow analysis that will show, moneys collected, disbursements made, and anticipated disbursements for the coming year.

PennyMac will pay the full amount due for your taxes and/or insurance premiums even if you are short in your escrow account, and then we will simply collect the shortage back from you in, additional monthly amounts over the next twenty four months.

There is no fee required to establish an escrow account, however a deposit to create an initial balance in your escrow account may be required. This deposit is generally equal to 2 months escrow payment, subject to state limitations. During the first twelve months your escrow account is active, PennyMac will collect this deposit in 12 equal payments. This amount is in addition to that which is collected to pay the regular installments of taxes and/or insurance premiums that will be paid from your escrow account.

Property taxes and insurance premiums must be paid in full and current prior to establishing an escrow account. If you have a tax or insurance premium due within one month of receipt of your escrow setup request, you must first pay those items as they come due. In addition you will need to provide PennyMac with proof of payment when submitting your request.

You will receive a written confirmation once we have completed your escrow setup. You will receive a letter from us with the details of your escrow account, what your new payment amount is and when that payment becomes effective.

In addition, you will receive an initial Annual Escrow Account Disclosure Statement shortly thereafter. This statement will give you your escrow projection for the next 12 months.

Your escrow analysis statement will show you what is projected to be paid out of your escrow account over the next 12 months to ensure that your property taxes and related insurance premiums are kept current. You should review this statement to make sure that PennyMac is scheduled to pay your taxes and/or insurance premiums at the correct time and for the correct amount. Discrepancies should be reported to PennyMac immediately.

PennyMac will analyze your escrow account at least once every 12 months to ensure there are sufficient funds being collected to make all scheduled payments. The analysis determines if any adjustments need to be made to your escrow payments based on projected disbursements for the coming year. Each time you receive an analysis statement you should review it for accuracy and contact us if you have any questions regarding your tax and/or insurance premium disbursements.

You are free to change insurance carriers any time you wish. Having an escrow account does not mean you cannot make changes to your insurance. Please ensure your new insurance company is aware that your insurance is escrowed and provide them with the following mailing address so we can ensure your monthly premium is paid on time.

If you are escrowed for taxes and you receive a tax bill you can call PennyMac's Customer Service Department at (866) 586-9210 or mail a copy of your tax bill (keep the original for your records) to:

Once PennyMac sets up your new payment, it will automatically deduct from your bank account at the new payment amount. It is your responsibility to ensure that there are sufficient funds in your account on your scheduled payment deduction date.

Monthly billing statements are sent approximately 12-17 days before your next payment is due. If you have not received your monthly billing statement before your payment is due, please contact Customer Service at (866) 586-9210. When you make a payment, please include your PennyMac account number on your check, money order or certified cashier’s check and send the payment to the payment mailing address.

You may change your address by phone or mail. To have your information updated or corrected by phone contact a Customer Service Representative at (866) 586-9210. To mail your change of address, please send us a letter, including your account number and signature, indicating your new mailing address. You can mail this letter to the following address:

Statements that are printed before the receipt of your last payment will reflect your current month's amount due as well as any amount that you are past due. If you mailed your payment after your last due date, the statement may reflect that you have two payments due. Please check with your bank to ensure your payment has cleared your account. To verify that PennyMac has received your payment, contact a Customer Service Representative at (866) 586-9210.