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Today's Mortgage Rates in Pennsylvania

Get a Lower rate in Pennsylvania whether you're buying, looking to get cash out of your home or lower your monthly mortgage payment.

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Current Pennsylvania Mortgage and Refinance Rates

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What Affects Pennsylvania Mortgage Rates

Pennsylvania doesn't have a single statewide mortgage rate. The rates on this page can be a starting point, but your personalized rate will reflect both market conditions and your personal situation.

Keep in mind that the interest rate and APR aren't the same. The interest rate affects your monthly principal and interest payment, while the APR includes certain fees. 

Other factors that affect your rate include:

  • Federal Reserve policy and inflation: The Fed doesn't directly set mortgage rates, but its policies can impact them. High inflation and aggressive Fed policy can mean higher rates, whereas cooling inflation and relaxed guidance can mean lower rates.

  • Economic indicators: Economic factors like housing supply, unemployment, and wage growth all play a role in shaping investor expectations and lender pricing. 

  • Your situation: Your credit score, debt-to-income ratio, down payment, and loan type also affect your final APR.

The rates on this page are based on certain, pre-set loan amounts and credit scores. To get a personalized rate that reflects both current economic conditions and your personal circumstances, you can connect with an experienced loan officer.

Types of Mortgages Available in Pennsylvania

Pennsylvanians looking to buy a home have a wide range of loans. Whether you’re buying a home in Philadelphia, Pittsburgh, or anywhere in between, you have access to a number of different options to meet your needs:

  • Conventional Fixed-Rate Mortgages: Conventional loans conform to Fannie Mae and Freddie Mac guidelines for underwriting and loan amounts. You'll typically need a credit score of at least 620 and a debt-to-income ratio under 43-45%. Qualifying first-time homebuyers can have a minimum down payment as low as 3%, but most buyers will need a down payment of at least 5%. Having a fixed rate means the interest rate stays the same for the full loan term, which is usually 15 or 30 years. That makes payments on principal and interest predictable. You'll usually be required to pay private mortgage insurance (PMI) if your down payment is less than 20%, but PMI can usually be canceled once you gain enough equity. 

  • Adjustable-Rate Mortgages (ARMs): Adjustable-rate mortgages, or ARMS, generally start with a period of fixed interest rates before the rate periodically adjusts. Common fixed-rate periods for ARMS are between 5 and 7 years. If you see a 5/1 ARM, for example, that means the loan has an initial fixed rate period of 5 years and annual adjustments afterwards. Payments can change after the introductory period, but many ARMs come with rate caps to limit how much they can change. Like other conventional loans, PMI may be required if your down payment is less than 20%.

  • FHA Loans: FHA loans are backed by the Federal Housing Administration and have more flexible down payment and credit score requirements. If you have a credit score of 580 or higher, you might qualify with a down payment as little as 3.5%. Mortgage insurance premiums (MIP), including an upfront premium and ongoing monthly payments, are required regardless of down payment size. If you have a down payment of less than 10%, MIP generally lasts for the life of the loan unless you refinance into a conventional mortgage. If your down payment is 10% or higher, you can request to cancel your MIP after 11 years. 

  • VA Loans:  VA loans are open to eligible veterans, active-duty service members, and surviving spouses. They come with competitive terms, including no down payment or private mortgage insurance requirements. They do require a one-time VA funding fee, but that can be financed. Some veterans, like those with disabilities related to their service, aren't required to pay the funding fee. 

  • Jumbo Loans: Jumbo loans exceed conforming loan limits, and generally come with stricter underwriting requirements. Conforming limits are higher in high-cost counties, but those limits can vary year to year. 

 

Refinancing a Mortgage in Pennsylvania

Pennsylvanians also have access to a number of refinancing options to lower their rate or tap into their home's equity:

  • Rate-and-term Refinance: This is a simple and common refinance that replaces your existing mortgage with a new one. That could mean refinancing from an FHA to conventional loan to remove FHA mortgage insurance if you qualify, or refinancing a conventional loan to lower your rate or shorten your payoff timeline.
  • Cash-out Refinance: This refinance replaces your existing mortgage with a new, larger one and lets you take a portion of your equity out as cash. The amount you can access depends on your home value, how much you still owe, lender loan-to-value limits, and closing costs. Unlike a home equity loan or HELOC, which come as second loans, a cash-out refinance replaces your primary mortgage with a new one. 

Learn more about mortgage rates in Pennsylvania

Are there homebuyer assistance programs in Pennsylvania?

The Pennsylvania Housing Finance Agency (PHFA) offers assistance programs for both home loans and refinancing.

That includes grants and forgivable down payment assistance loans for qualifying buyers.

Does credit score affect mortgage rates?

Credit score has a major impact on your mortgage rates, with higher credit scores generally meaning lower interest rates.

Your credit score isn't the only thing that affects your mortgage rate, however. Your downpayment, debt-to-income ratio, loan term, and other factors will also affect your rate.

Larger factors, like inflation and the broader economy, also have a major impact on your rate.

How can I get a lower mortgage rate?

You can take several steps to lower your mortgage rate, like paying down debt, making a larger downpayment, or improving your credit score.

How will property taxes and insurance in Pennsylvania
affect my mortgage payment?

Property taxes are often included in your mortgage payment as part of an escrow account. If that's the case, it means your lender will collect property tax payments each month and pay the tax bill for you. Some loan types, like FHA and VA loans, sometimes require escrow accounts.

Pennsylvania is generally on the higher end of all states in terms of effective statewide tax rates, according to the Tax Foundation.

Keep in mind property tax can vary significantly within a state, with urban areas generally higher than those in rural areas.

Homeowners insurance can also affect your mortgage payment if it's bundled into your premium with an escrow account. Your home's location, and whether it's in an area that is affected by natural disasters like floods, plays a major impact on your insurance cost. Details about your home, like its size, age, and condition can also affect your payment. Pennsylvania is one of the most affordable states in the country for property insurance, according to the U.S. Census Bureau.

Loan Officers in Pennsylvania

William Cullen

William Cullen

Loan Officer

NMLS ID# 107860

Paul Berkobin

Paul Berkobin

Regional Manager, VP

NMLS ID# 133238

All Loan Officers in Pennsylvania

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