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Pennymac is a home mortgage lender that offers home equity loans for qualifying borrowers. Pennymac doesn’t have any physical locations but customers can apply online and complete their application with a licensed loan officer in as fast as a few weeks. Read on to find out if you’re likely to qualify and if the lender is a good option for your borrowing needs.

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Pennymac home equity loan pros and cons

  • Ability to apply online
  • A+ rating with the Better Business Bureau (BBB)
  • Useful planning tools
  • No physical locations
  • No home equity lines of credit (HELOCs)

Pennymac pros explained

Ability to apply online

While many lenders make you visit a branch or directly contact a loan officer to apply for home equity loans, you can conveniently apply with Pennymac online. Furthermore, Pennymac offers several great online tools and calculators to estimate how much you might be approved for. While these tools don’t factor in your exact credit score, they can be invaluable in helping you decide if the loan is something you’d like to pursue before applying.

A+ rating with the Better Business Bureau (BBB)

While the BBB isn’t the be-all and end-all of consumer ratings, it’s a fairly trustworthy way to gauge how regular consumers feel about a company. Pennymac currently has an A+ rating through the bureau, and it has far fewer customer complaints than other mortgage lenders.

Useful planning tools

Pennymac offers useful tools to help you meet financial goals beyond borrowing. Its website also offers information about home equity loans and other financial products. These tools can help you determine whether refinancing aligns with your needs. Home equity loans can be confusing, so it’s always great to work with an institution that gives you all the tools you need to make an informed decision.

Pennymac cons explained

No physical locations

Pennymac conducts its operations entirely online, which means you’ll never have a loan officer you can speak to face-to-face. While this may be beneficial if you prefer this kind of interaction, you might find the lack of brick-and-mortar locations frustrating. This feature could also be frustrating if you encounter an issue with your loan that’s difficult to discuss and resolve over the phone.

No home equity lines of credit (HELOCs)

Pennymac used to offer HELOCs (home equity lines of credit), but they suspended the program for new customers in 2020. In contrast to a home equity loan, a HELOC lets you draw against a line of credit on an as-needed basis rather than receiving a lump sum of cash. If you need to cover ongoing expenses, consider getting a HELOC from another lender.

Pennymac home equity loan offerings

Pennymac home equity loans are one-time lump sums of cash that are given to home-owning borrowers, with their properties used as collateral. While these types of loans can be taken in emergency circumstances, home equity loans can also be a tax-advantageous way to make repairs or renovations to your home without having to eat into your existing equity.

Keep in mind a longer term allows you to make smaller repayments each month, while a shorter term period allows you to pay off the principal faster, thereby reducing the overall interest you pay on your loan.

Remember, you typically need at least 15% equity in your home to access a home equity loan. If you need to raise that percentage, read our guide on how to build equity in a home.

Pennymac home equity loan pricing

The interest rates offered for Pennymac home equity loans seem to be in line with the current national average. As with any choice to borrow, ensure you can comfortably make repayments if you take out a home equity loan.

Pennymac home equity loan financial stability

Pennymac received a BB- rating from Fitch Ratings, a major financial ratings agency. This rating is given to companies that face an “elevated vulnerability to default risk,” but that have enough flexibility to continue paying for their financial commitments.

Pennymac home equity loan accessibility

Not sure if you’re the right candidate for Pennymac? Here’s what you need to know about the accessibility of a Pennymac home equity loan.


The availability of Pennymac home loans depends both on your financial situation and which product you’re interested in. Minimum FICO score and DTI requirements vary across Pennymac’s home loans and financial products.

Contact information

If you’d like to speak to a customer service representative before beginning your application, you can contact Pennymac customer service at 1-888-870-6229 between the hours of 5 a.m. and 6 p.m. PST, Monday through Friday, or between 7 a.m. and 3 p.m. PST on Saturdays. Customer service is not available on Sundays.

User experience

The Pennymac website offers an abundance of tools and guides to help you determine whether a home equity loan is right for you, as well as what your monthly payment will likely be. However, Pennymac doesn’t have physical locations, which means you’ll need to be comfortable with managing your loan exclusively online or over the phone.

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Pennymac home equity loan customer satisfaction

Pennymac maintains an A+ rating with the Better Business Bureau (BBB). While there were some scattered complaints, the number of negative reviews was relatively low, especially compared to the amount of positive feedback. Many customers praised the application process specifically, saying that it was easier than what they’d experienced with other financial institutions.

Pennymac home equity loan FAQ

What is Pennymac?

Pennymac is an online mortgage lender that specializes in mortgages and home equity loans. Founded in 2008, it serves 40 U.S. states and Washington D.C., offering home equity loans and refinancing options in addition to conventional and government-backed mortgages.

Does Pennymac offer HELOCs?

Pennymac discontinued its HELOC program in 2020. If you're interested in borrowing cash against the equity of your home, consider a home equity loan or cash-out refinancing.

Is Pennymac legit?

There were allegations Pennymac stole trade secrets from another financial institution in 2019. However, this seems to have had little to no impact on its customers and was rather a dispute over intellectual property between two businesses. The company maintains an A+ BBB rating and has no history of defrauding consumers. 

What is the grace period for Pennymac?

Pennymac home equity loan payments are due on the first of the month, but the company offers a 15-day grace period before you incur a late fee. 

What credit bureau does Pennymac use?

Pennymac doesn't specify which credit bureau it uses on its website. The three credit agencies in the U.S. are TransUnion, Equifax and Experian. 

How we evaluated Pennymac home equity loan

In evaluating Pennymac home equity loans, we researched information from the following sources:

  • Pennymac’s website and public-facing consumer information
  • The BBB and customer review websites
  • News articles concerning the company and its history

Summary of Money’s Pennymac home equity loan review

Pennymac can be a good choice if you want to take advantage of pre-approval, with the option to lock in your rate if you need extra time to make a decision. While the company doesn’t have physical locations, its online service is well-reviewed by many of its customers.

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