The Perfect Mortgage for Your New Home

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.

Found your dream house? Here are some great reason to work with PennyMac:

  • Low, everyday rates
  • FHA, VA, and flex-term options available
  • A top 11 lender in the U.S.
  • A publicly traded, national lender with over 2,900 employees (NYSE:PFSI)

Mortgage Loan Options

It’s important to have the right partner when you’re ready to buy a new home and PennyMac offers a wide range of financing options to suit a variety of needs. Whether you’re looking for a loan for a primary residence, second/vacation home, investment property or even a multifamily/apartment building (5+ units), we will work through your complete financial picture to find the right option for you. Which one of these products sounds like the best fit for you:

Conventional Fixed-Rate Mortgages

A low rate that never changes.

Rates & More Info >
  • Best rates for qualified borrowers
  • One rate for the life of your loan
  • No mortgage insurance
  • Plan to stay in your home for a longer period of time
  • Have built a credit history
  • Already have the funds for a down payment of 5% or more

Adjustable-Rate Mortgages (ARMs)

Pay the lowest rate initially and then transition to an annually adjusting rate.

Rates & More Info >
  • The lowest short-term rates
  • Keeps your monthly payments low for the initial period
  • Select an initial rate period of 3-10 years based on your plans for the home
  • Plan on moving or selling your home in a few years
  • Have built a credit history
  • Already have the funds for a down payment of 5% or more

FHA Mortgages

Government-backed loans with more flexible lending guidelines.

Rates & More Info >
  • Low down payments
  • Flexible qualification guidelines
  • Fixed-rate and ARM options are available
  • Fixed-rate and ARM options are available
  • Lack a credit history or have some credit problems in the past

VA Mortgages

Government-backed loans for eligible military members and their spouses.

Rates & More Info >
  • Lower or zero downpayment required
  • Mortgage insurance is not required
  • Flexible qualification guidelines
  • Fixed-rate and ARM options are available
  • Are an active military member or veteran
  • Are the surviving spouse of a service member who has not remarried

Multifamily*

Loans for apartment buildings and multifamily properties up to $5 million.

Rates & More Info >
  • Fixed loan terms up to 10 years.
  • Streamlined processing with low fixed upfront costs.
  • Are an investor that is interested in properties with at least five units.
  • Have funds available for at least a 20% downpayment.

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.

No expensive brick-and-mortar retail offices — We believe in passing on the savings to our customers with some of the lowest, most competitive rates and fees available today. Home loans are the primary focus of our business, not upselling you and adding services you don’t need.

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

Purchase Loan Calculators
Purchase Loan Calculators

Use today’s rates to get a better understanding of the true cost of different mortgage products before chatting with one of our licensed loan officers.

Current Loan Rates
Current Loan Rates

Rates are changing every day so check here to get an instant, customized rate quote tailored to your unique situation.

Mortgage Learning Center
Mortgage Learning Center

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.

Should I buy a house?
Will I be turned down for a loan if I’ve had credit problems?

Will I be turned down for a loan if I’ve had credit problems?

Not necessarily. Your credit score is only one of the factors taken into consideration when you apply for a home loan. We also review your employment history, income, debt and cash reserves. There are also different kinds of loan products that have varying requirements for your credit history.

How long does the home loan process take?

Every home loan situation is different, so it’s difficult to accurately estimate how long your home mortgage process will take. Some of the factors that affect the timeline include the type of loan, the specific term you’re requesting, the amount of required documentation and the amount of time it takes to provide your lender with those documents. Luckily, you’re never alone in the process with PennyMac. Our loan officers and processing specialists will work with you every step of the way to ensure that your application is processed as efficiently as possible..

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
What documents will I need to apply for a mortgage?
When can I lock the interest rate, and what will it cost me to do so?

When can I lock the interest rate, and what will it cost me to do so?

There is no way to know how interest rates will fluctuate so it’s generally a good idea to lock a rate when you find a loan product that is in line with your financial goals. To prevent getting a higher rate, you can lock the rate, and even the points, for a specified period. Fees may apply, but not always. If rates go down, you still have options but locking a rate will at least protect you from rising rates.

What are closing costs?

Mortgage closing costs are fees charged for services that must be performed to process and close your loan application and they may vary depending on a variety of factors. Examples of mortgage closing costs include title fees, recording fees, appraisal fees, credit report fees, pest inspection, attorney’s fees, taxes and surveying fees. The closing cost of a loan will vary depending on your geographic location and the requirements of the loan product.

Lenders are required by law to provide you with your Loan Estimate and the Closing Disclosure to outline your closing costs and help you avoid surprises at the closing table. Your loan officer can answer any questions you have about the different closing costs associated with PennyMac’s mortgage products and what options you may have for minimizing your up-front costs.

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.

Does the loan have any prepayment penalties?
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Equal Housing Opportunity © 2017 PennyMac Loan Services, LLC, 3043 Townsgate Rd, Suite 200, Westlake Village, CA 91361, 818-224-7442. NMLS ID # 35953 (NMLS Consumer Access). Arizona Mortgage Banker Lic. # 0911088. Loans made or arranged pursuant to a California Finance Lenders Law license # 60DBO-46246. North Dakota Money Broker Lic. # MB102550. Information, rates and pricing are subject to change without prior notice. All loan programs subject to borrowers meeting appropriate underwriting conditions. This is not a commitment to lend. Some products may not be available in all states. Other restrictions apply. All rights reserved.