Pennymac offers several programs for those seeking a 30-year fixed mortgage. One program offers a $1,000 credit towards closing costs or principal curtailment for customers who obtain a pre-approval before locking in a purchase loan. This incentive applies to eligible fixed-rate purchase loans and excludes jumbo, refinance, third-party, and in-process loans. This offer can be beneficial for borrowers seeking to reduce their upfront costs. Pennymac reserves the right to change or cancel this offer at any time.
Another program provides a 1% reduction in the note rate for the initial 12 payments on eligible fixed-rate purchase loans. This temporary buydown is achieved through a lender-paid credit funded into a custodial escrow account. The funds in this account cover the 1% difference between the note rate and the buydown rate for the first year of the mortgage. This effectively lowers the borrower’s monthly payments during the first year. This offer excludes VA, jumbo, closed-end second mortgages, adjustable-rate mortgages, refinance, investment property loans, third-party loans, and loans already in process. This rate reduction cannot be exchanged for cash or credit and is non-transferable. Occupancy restrictions may apply, and Pennymac retains the right to modify or discontinue this offer without prior notice.
Pennymac’s Lock & Shop Program allows potential homebuyers with a pre-approval to lock in an interest rate before finding a property. This requires a non-refundable fee of $595 at the time of the rate lock. The program offers lock periods of 60, 75, or 90 days. To extend the locked rate, borrowers must submit a mortgage application for a specific property and be under contract at least 30 days before the lock expiration. Rate lock extensions are subject to standard Pennymac fees. Depending on market conditions, borrowers might qualify for a one-time rate reduction of up to 0.50% after a loan application for a specific property is initiated. Eligible loan products include conventional fixed, conventional adjustable-rate mortgages (ARMs), FHA fixed, and VA fixed loans. Jumbo loans, refinances, third-party loans, and in-process loans are excluded. Pennymac has the discretion to terminate this program without notice. This program provides flexibility for buyers who want to secure a competitive interest rate in today’s market before committing to a specific property.
