PennyMac Loan Services Mortgage Interest Rate and Cost Review

Is PennyMac Loan Services a cheap or expensive mortgage lender? We compare the interest rates and closing costs charged by PennyMac Loan Services with other lenders for comparable mortgages. Nationally, here is what we find:

Interest Ratesimilar to average (-0.04%)
Loan Related Closing Costshigher than average (+$337)
National Rate and Closing Cost Rating(3.5)
Websitehttps://www.pennymacusa.com

On average, PennyMac Loan Services’s interest rates were similar to those of other lenders (-0.04%) for a comparable set of borrowers. Its average total loan related closing cost was higher than those of other lenders, with a difference of +$337. Overall, combining interest rates and closing costs we estimate that PennyMac Loan Services tends to be an average cost lender, and give it a National Rate and Closing Costs Rating of 3.5 out of 5.0 stars.

PennyMac Loan Services’s Rates by Area

Mortgage lenders often set different rates in different geographical markets. In particular, among the markets we track PennyMac Loan Services was most active in:

  1. Los Angeles, CA
  2. Atlanta, GA
  3. Washington, DC
  4. Phoenix, AZ
  5. Seattle, WA

You can click through to check out PennyMac Loan Services’s mortgage rate competitiveness by area. Or, for our data driven ranking of all the top mortgage lenders by area, click here.

PennyMac Loan Services’s Rates by Mortgage Type

Mortgage lenders also tend to charge different interest rates and closing costs depending on the type of mortgage. In our data, PennyMac Loan Services originated Conforming, FHA, Jumbo and VA mortgages for new home purchases. It also originated Conforming, FHA, Jumbo, USDA and VA mortgages for refinances. We breakdown its interest rate and total loan related closing cost difference relative to other lenders for comparable mortgages by type in the table below.

Purchase/Refinance:
New Purchase MortgagesConformingFHAJumboVA
Interest Rate Difference-0.06%-0.10%+0.01%-0.06%
Loan Related Closing Cost Difference-$292-$385+$45+$27
Cost Adjusted Rate Difference-0.07%-0.13%+0.01%-0.06%
Star Rating(4.0)(4.0)(3.5)(4.0)
Refinance MortgagesConformingFHAJumboUSDAVA
Interest Rate Difference+0.04%-0.01%+0.02%-0.00%-0.12%
Loan Related Closing Cost Difference+$494-$203+$58+$25+$800
Cost Adjusted Rate Difference+0.08%-0.02%+0.02%+0.00%-0.08%
Star Rating(3.0)(3.5)(3.5)(3.5)(4.0)

As a summary, PennyMac Loan Services is cheap for Conforming, FHA and VA purchase mortgages. It is similar to other lenders for Jumbo purchase mortgages. For refinancing mortgages, PennyMac Loan Services is cheap for VA mortgage refinance. It is similar to other lenders for FHA, Jumbo and USDA mortgage refinance. It is more expensive than other lenders for Conforming mortgage refinance. Nevertheless, individual circumstances can matter, and we always recommend shopping among several lenders in your area before signing.

Other information about PennyMac Loan Services:

Registered name: Pennymac Loan Services
Registered city and state: WESTLAKE VILLAGE, CA, 91361
Regulator: Consumer Financial Protection Bureau (CFPB)
Top holder: PNC FINANCIAL SERVICES GROUP, INC., THE

* Source of the data is Federal Financial Institutions Examination Council (FFIEC) and is for mortgages originated in the past year. Our comparable mortgages analysis controls for PennyMac Loan Services’s distribution of loan term (e.g. 30 year vs 15 year), loan-to-value (LTV), debt-to-income (DTI), loan amount, loan program (e.g. Conforming/FHA), loan purpose (e.g. purchase/refinance), and commuting zone. Cost adjusted rates were computed based on each percent of the loan amount in above average loan related closing costs being worth +0.15 of a percentage point in interest rate. Furthermore, the amounts are regularized using a Bayesian approach to control for small samples.