Pennymac Home Equity Loans: 2026 Review

Home Equity Loans

Our take: Pennymac’s home equity loans are pretty standard. The rates fall within industry norms, although the flat rate origination fee is surprisingly affordable. But you need a pretty high credit score to qualify, and you won’t find any unique perks.

• Fast closing for qualified borrowers
• Helpful customer service representatives
• Low, flat-rate origination fee
• Option to buy down rate

• Limited phone hours
• Must speak with a loan officer
• Can’t view rates online
• High credit score requirement

Rates (APR)	Starting around 7%
Funding amounts	Up to $500,000
Repayment terms	10, 15, 20, and 30 years
Min. credit score	720
Max. LTV	80%
Customer ratings	3.73/5 out of 348 on Better Business Bureau
Fees	$500 origination fee

Pennymac is a long-standing mortgage lender with physical locations in Texas, Missouri, Nevada, Hawaii, California, Arizona, Florida, and Tennessee. 

You can borrow up to 80% of your home’s value with a Pennymac home equity loan, as long as you meet the eligibility criteria. The loans are pretty typical, with starting rates around 7% APR and a limit of up to $500,000. Check out our list of the best home equity loan lenders if you want to see how Pennymac stacks up. 

How do Pennymac home equity loans work?

Pennymac home equity loans may not have the lowest rates or the newest perks, but their loan officers are helpful, and the terms are easy to understand. Most reviewers agree that Pennymac does the basics well.

If you have your paperwork ready, you can close your loan in as little as three weeks. The main downside is that you can’t finish the process online or see rates until you talk to a loan officer on the phone or in person. Since phone hours are limited, it may be hard to reach someone if you work typical business hours.

Pennymac home equity loan features

Here’s a look at some of the loan’s features, which are pretty standard with most lenders. 

Access your funds immediately

You can close on a Pennymac home equity loan in three to four weeks. After closing, you’ll get the money in your account within four business days. While it’s not immediate, it’s faster than some lenders, which can take up to six weeks.

Keep your first mortgage

You can keep your current mortgage when you get a home equity loan. It’s your best bet if you have a low mortgage rate and want to keep it.

Rely on a fixed-rate monthly payment

Pennymac home equity loans have fixed rates, so your monthly payment won’t go up. Fixed rates are common for these types of loans.

Buy down your rate

With Pennymac, you can pay a one-time fee to lower your interest rate. The cost depends on how much you want to reduce your rate, and it could help you save money over time. 

Receive your funds in a lump sum

Home equity loans hit your bank account as a lump sum. The total loan amount, minus any fees, is available after closing.

Get a tax deduction 

You may be able to deduct the interest you pay on your home equity loan if you use the funds to buy, build, or significantly improve your home. The deduction applies to loans from any lender, not just Pennymac.

Pennymac home equity loan eligibility requirements

Pennymac offers home equity loans in every state, and you don’t need to meet any membership requirements. But the credit score requirement is higher than expected.

Requirement	Details
Membership	None
Eligible properties	Primary resident and investment properties
State of residence	Available in 50 states + D.C.
Min. credit score	720

Pennymac mortgage refi

If a home equity loan doesn’t work for you, Pennymac has two other ways to tap into your home’s equity.

Rate-and-term refinance

With Pennymac’s rate-and-term refinance, you can lower your interest rate and get better loan terms. The rates are similar to the ones for Pennymac’s home equity loans.

Cash-out refinance

Pennymac’s cash-out refinance lets you replace your current mortgage with a larger loan. This way, you can get cash now to cover expenses or home improvements.

Are Pennymac home equity loans legit? Customer reviews and ratings

Pennymac is a licensed mortgage lender (NMLS ID # 35953) and has been operating since 2008. The company is also accredited by the Better Business Bureau (BBB). Reviews for Pennymac home equity loans are mixed, but many customers report positive experiences.

Source	Rating	Number of reviews
Better Business Bureau	3.73/5	648
Trustpilot	2.4/5	1,668
Google	4.8/5	1,250

Here’s the bottom line

• What it does well: Pennymac stands out with its friendly customer service team. Our experience matched what other reviewers said. We reached a loan officer in under a minute, and she took the time to answer all our questions.
• Where to be cautious: Some reviewers mention problems with closing, unexpected charges, or other payment issues. These concerns are usually fixed, but it can take a while.

Pennymac home equity pros and cons

Here’s a look at the pros and cons of getting a Pennymac home equity loan.

Pros

• Fast closing

  Most loans close in three to four weeks. After that, you’ll get your money in about four business days.

• Strong customer service

  The loan officers know their stuff and are friendly, which helps make the home-buying process a good experience.

• Low origination fee

  Pennymac charges a flat $500 fee, which is lower than what many other lenders ask for.

• Option to buy down the rate

  You can choose to pay more at the start to get a lower interest rate for the life of your loan.

Cons

• Limited phone hours

  The company is closed on Sundays and has shorter hours on Saturdays, so it may be tough to get help if you work a 9-to-5 job.

• Must speak with a loan officer

  You’ll need to talk with a loan officer by phone or in person to complete your application or finalize your loan.

• Can’t view rates online

  Pennymac doesn’t post home equity loan rates online, so you’ll need to call to get that information.

• High credit score requirement

  You’ll need a credit score of at least 720 to qualify for a home equity loan.

How to apply

You can’t get very far with your loan application online. Once you submit the initial form, a loan officer will call you. Or you can call 866-497-3760 to get started over the phone. 

How Pennymac home equity compares to other lenders

If Pennymac isn’t the right option, take a look at the best home equity lenders.

Pennymac vs. New American Funding

New American Funding is a good option if your credit score doesn’t meet Pennymac’s 720 minimum. You can qualify with a score as low as 620, making it our top choice for accessibility. They also offer many mortgage options, and customers are generally very satisfied.

Pennymac vs. LendingTree

LendingTree is a loan marketplace, not a direct lender. Pennymac is one of LendingTree’s partners, so you may see it when searching for home equity loans. LendingTree is helpful if you want to compare several options in one place. Plus, you only need to fill out one form.

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