What is the right mortgage for me?
Whether you're a first-time homebuyer or looking to purchase your next home, PennyMac will work with you every step of the way to help you find the right home mortgage that meets your specific financial goals.
Why should I choose PennyMac?
We service the loans we originate — While other lender may be looking to sell your loan as soon as you sign the the dotted line, PennyMac is dedicated to being a lender you can trust long beyond your closing date. When you originate a loan with PennyMac, we’ll service your loan because we value your trust and decision to choose us.
PennyMac is dedicated to fulfilling the dream of homeownership for everyone interested in taking the next step on a new property. We’re working every day to improve the experience of finding the right home loan for your unique needs and offering competitive rates on a wide range of products.
We’re committed to being your partner is homeownership - Being a PennyMac customer means having a partner that never stops looking for ways to save you money and help fulfill your dream of home, whatever that may be.
Resources & Tools
Get unbiased, useful mortgage information on APR, fixed-rate loans, mortgage insurance and other related mortgage topics at our learning center.
Frequently Asked Refinancing Questions
Should I buy a house?
Whether or not to buy a home is one of the most important financial decisions an individual or family is faced with. The decision has more to do with your financial planning than it does with constantly fluctuating market conditions. The first step towards determining if it is a good time to buy a home is to speak with a licensed loan officer and learn more about all your options. Once you know what kind of house you can afford and what kind of commitment is required, you can compare it against other options, like renting, and make the decision that makes most sense for you. Check out this article for a deeper look at the pros and cons of buying a home versus renting.
How much house can I afford?
Before determining how what list price to target in a new home, you first must understand how much you’re comfortable spending on housing per month. A common rule of thumb is to earmark 28% of your post-tax income for house payments, including your homeowners insurance and property tax. For example, if your annual income after taxes is $60,000, 28% of that is $16,800, or $1,400 per month. However, every situation is different. It’s important to look at all your current and future financial obligations and make the right decision for your unique situation.
We’ve made doing the math a lot easier for you. Check out our helpful Home Affordability Calculator to assess your debt-to-income ratio, down payment, loan amount and your mortgage payment – all at once! Then, use our Mortgage Payment Calculator to see current mortgage rates and your estimated monthly payment.
What documents will I need to apply for a mortgage?
Traditional loans usually require documents that verify your employment, income and assets, and may include:
- Your Social Security number
- Pay stubs for the last two months
- W-2 forms for the past two years
- Bank statements for the past two or three months
- One to two years of federal tax returns
- A signed contract of sale (if you've already chosen your new home)
- Information on current debt, including car loans, student loans and credit cards
Does the loan have any prepayment penalties?
Prepayment penalties are rare in today’s mortgages. If you manage to pay off a 30-year fixed rate mortgage in only 15 years, you come out ahead financially because you’ve reduced the amount of interest paid on the loan. For more info on Early Payoff Options, click here.
What is the minimum down payment required for a home purchase loan?
While 20% may be the most common down payment requirement for most conventional loans, some products, like FHA loans, require down payments as low as 3.5%. Be sure to weigh all your costs though since loans with lower down payments can often cost more over the life of the loan.
Do I have to pay for mortgage insurance, and how much will this cost?
Often loans that require less than 20% down on your purchase requires paying mortgage insurance until your loan-to-value, or LTV, ratio falls below 80%. Mortgage insurance premiums can vary some costing up to $100 per month for every $100,000 borrowed.