Pennsylvania Mortgage Rates Guide

Pennsylvania has a diverse range of mortgage rates, with factors like location, credit score, and loan term influencing the final cost.

In Pennsylvania, the average 30-year fixed mortgage rate is around 3.75%, according to current market trends.

To get the best mortgage rates in Pennsylvania, it's essential to shop around and compare offers from different lenders.

The state's largest cities, such as Philadelphia and Pittsburgh, tend to have higher mortgage rates due to their larger populations and higher demand for housing.

As of January 3, 2025, current interest rates in Pennsylvania are 6.78% for a 30-year fixed mortgage.

Mortgage rates in Pennsylvania have been steadily rising, making it challenging for homebuyers to afford housing. Home prices in the state have also increased, with Pittsburgh seeing a 22 percent year-over-year rise as of February 2024.

Economists predict that mortgage rates will remain high for the foreseeable future, but may gradually fall throughout 2024.

Comparing mortgage offers is crucial to get the most competitive rate and terms. Even a 0.1 difference in an interest rate can save thousands of dollars over the life of the loan.

You can easily compare mortgage offers on Bankrate by following three easy steps. First, determine the right type of mortgage for you, considering your finances and goals. Then, gather necessary documentation to provide to lenders, including income, assets, debts, and employment verification.

To compare mortgage offers online, use Bankrate's mortgage rate table, which allows you to plug in general information about your finances and location to receive tailored offers. Be sure to consider APRs, lender fees, and closing costs to ensure accurate comparisons and maximize your savings potential.

To find the best mortgage rate in Pennsylvania, you'll need to strengthen your credit score, determine your budget, know your mortgage options, and compare rates and terms from several lenders. Rate-shop with at least three different banks or mortgage companies to get the best deal.

Here's a quick comparison of two lenders to consider:

By following these steps and considering multiple lenders, you can find the best mortgage rate in Pennsylvania for your needs.

Refinancing your mortgage in Pennsylvania can be a great way to save money or tap into your home's equity. Refinance rates have more than doubled since the pandemic, making refinancing unlikely for many Pennsylvanians.

However, rates may start trending downward over the next few years, making it a good option for those who've gotten a mortgage recently. With a cash-out mortgage refinance, you could take advantage of your tappable equity to help further your financial goals.

A resource available to you is the High Loan-to-Value Refinance Option from Fannie Mae. This option is essentially a replacement for the Home Affordable Refinance Program (HARP), which was cancelled in 2018.

You can refinance to lower your monthly payment by taking advantage of lower current rates. However, refinancing costs money, so you'll want to make sure your monthly savings make it worthwhile.

You can also refinance to take cash out of your home, which can be beneficial if you need to pay for a big home repair or upgrade. But if it means taking on a higher interest rate, it might not be worth it.

Two great ways to refinance your mortgage are available to you. We'll provide answers and insights to guide you through the process, from application to closing.

Here are some options to consider:

In Pennsylvania, there are two main types of mortgage loan limits: conforming and FHA. Conforming loan limits are set at $726,200, which is the maximum amount a homebuyer can borrow for a single-family home.

This limit applies to most counties in Pennsylvania, including Adams, Allegheny, and Armstrong counties. However, some counties have higher limits, such as Pike County, where the conforming loan limit is $1,089,300.

Here's a breakdown of the conforming and FHA loan limits for some of the counties mentioned:

These loan limits can impact the amount of money you can borrow and the interest rate you qualify for.

In Pennsylvania, the conforming loan limit is $726,200, which applies to most counties in the state. This limit is the maximum amount that can be borrowed without having to pay private mortgage insurance.

Not all counties in Pennsylvania have the same conforming loan limit. For example, Pike County has a conforming loan limit of $1,089,300, which is higher than the state's average.

The FHA loan limit varies by county, with some counties having a limit as low as $472,030. For instance, Adams County has an FHA loan limit of $472,030.

Here's a breakdown of the conforming and FHA loan limits for some counties in Pennsylvania:

Jumbo loans are a type of home loan that exceeds the conforming loan limit in a given county. In Pennsylvania, most counties have a conforming loan limit of $726,200, but Pike County has a limit of $1,089,300.

These larger loans are considered riskier for lenders, so they come with higher interest rates. Jumbo loan rates are currently lower than fixed rates.

The average 30-year fixed jumbo loan rate in Pennsylvania is 6.06%, according to Zillow's data from January 2023.

The 15-Year Fixed mortgage option is a popular choice for those who want to pay off their home loan quickly.

This type of mortgage has a shorter repayment period compared to a 30-year fixed-rate mortgage, with borrowers paying off the same amount of money in just 15 years.

With a 15-year mortgage, your monthly payments will be higher, but you'll save money in the long run by paying less in interest.

The average interest rate for a 15-year fixed-rate mortgage is generally lower than a 30-year mortgage.

A 15-year fixed-rate mortgage from Citizens Bank in Ohio has an estimated monthly payment of #ProductLine=Mortgage|Brand=citizensbank|Region=OH|NAME=Conforming Fixed Rate Mortgage - Refinance|Descr=15 Year Fixed Rate|ProductAttribute=MONTHLY_PAYMENT#.

Buying down your rate can be a great way to lower your monthly mortgage payments. You can do this by purchasing mortgage points, also called discount points, which cost 1% of the loan amount and lower your rate by 0.25 percentage points.

A mortgage point can make a big difference in your payments, especially if you're borrowing a large amount. For example, if you're borrowing $200,000, a mortgage point would cost $2,000 and lower your rate by 0.25 percentage points.

You can also get a temporary buydown to lower your rate for a period of time. A 2-1 buydown, for instance, lowers your rate by two percentage points for the first year you have the loan, then by one percentage point for the second year.

Your rate has a direct impact on how much house you can afford. Snagging a lower rate can enable you to borrow more money, boosting your homebuying power. For example, with a rate of 7%, you could borrow around $300,000, but with a 4% rate, you could afford to borrow as much as $400,000.

High mortgage rates have kept home prices from rising too rapidly this year, and the pace of increases may slow next year. The median sales price for existing homes was $407,200 in October 2024, up 4% from a year ago.

Knowing how much you can borrow helps you proceed with confidence. Prequalifying for your loan is a crucial step in the homebuying process, giving you a clear picture of your financial situation and what you can afford.

If you're a first-time homebuyer in Pennsylvania, there are programs available to help you get into a home. The Pennsylvania Housing Finance Agency (PHFA) offers several options.

The HFA Preferred (Lo MI) loan is a conventional loan with less expensive private mortgage insurance (PMI). You'll need to put at least $1,000 of your own money toward the down payment.

There are also programs specifically for first-time homebuyers, such as the Keystone Home loan program. It serves buyers in targeted Pennsylvania counties for conventional mortgages, VA loans, FHA loans, or USDA loans, each with different requirements.

The Keystone Government loan is another option, offering FHA loans, VA loans, or USDA loans, and you don't have to be a first-time homebuyer to apply.

The Keystone Flex mortgage with K-FIT loan combines a Keystone Home loan with a K-FIT loan for down payment and closing cost assistance. The K-FIT loan provides the homebuyer with 5 percent of the purchase price or appraised value in cash, forgivable over 10 years.

Here are the details of the Keystone Flex mortgage with K-FIT loan:

The Keystone Flex Purchase and Improvement mortgage with a K-FIT loan is similar, but for buyers purchasing a home that needs renovations. They can receive up to $30,000 over the purchase price to renovate the home.

High mortgage rates have actually helped keep home prices from rising too rapidly this year, with the median sales price for existing homes up just 4% from a year ago in October 2024, at $407,200.

Home prices are predicted to continue growing, but at a slower pace, with the MBA forecasting a 3.8% increase by the end of 2024 and Fannie Mae expecting a 5.8% increase for this year, with 3.6% growth predicted for 2025.

As mortgage rates drop, homeowners who've been waiting for lower rates may be more willing to list their homes, which should help increase inventory and slow down price growth next year.

Your rate has a direct impact on how much house you can afford, and snagging a lower rate can enable you to borrow more money, boosting your homebuying power.

For example, with a rate of 7%, you could borrow around $300,000, but with a 4% rate, you could afford to borrow as much as $400,000.

Knowing how much you can borrow helps you proceed with confidence, which is why prequalifying for your loan is a crucial step in the homebuying process.

High mortgage rates have kept home prices from rising too rapidly this year, and the pace of increases may slow next year, with the median sales price for existing homes up 4% from a year ago.

The MBA predicts that home prices will be up 3.8% by the end of 2024 and 1.5% in 2025, while Fannie Mae says they could end this year up 5.8% and increase 3.6% in 2025.

This means that if you're looking to buy a home, you may be able to afford more than you thought, but you should also be prepared for the possibility of rising home prices.

Homebuyers in Pennsylvania should be aware that there is a real estate documentary stamp tax of 1% that the buyer and seller typically split.

In Pennsylvania, homeowners are not allowed to deduct mortgage interest from their state income taxes, unlike in some other states.

Homebuyers may still be able to deduct mortgage interest from their federal income taxes, but this is a federal rule and not specific to Pennsylvania.

Citizens Financial Group offers a smooth online mortgage application process, as seen in a testimonial from a first-time home buyer in Paramus, NJ, who praised the LO's explanation and quick response time.

The process is designed to be easy and efficient, with a team that communicates well and responds promptly to calls and emails, as shared by a satisfied customer in Cranston, RI.

Despite unusual circumstances, such as a global pandemic, the process was still smooth, and good communication was maintained by Citizens' representatives, as noted by a customer in Belchertown, MA.

Here's a brief overview of the application process:

Refinancing your mortgage is a big decision, and it starts with gathering the right information. This includes your current mortgage details, income, and credit score.

To refinance, you'll need to consider current mortgage rates and how they compare to your existing rate. If rates are lower, you could save money by refinancing.

Refinancing costs money, so you'll want to weigh your potential savings against the costs. If your monthly savings make up for the costs, it might be worth refinancing.

You can also use refinancing to take cash out of your home, but be careful not to take on a higher interest rate in the process. This can be beneficial for big home repairs or upgrades, but make sure it's worth it.

Citizens makes it easy to apply for a mortgage online. The process is smooth and quick, with good communication from all representatives.

You can complete your profile and upload documents for your new home loan all online. This fast and simple way to apply and qualify for a home loan is a great option for many customers.

Citizens' online application process is designed to be user-friendly and efficient. You'll get a loan estimate that allows you to see the expected costs with a given lender.

Here are some key benefits of Citizens' online application process:

By using Citizens' online application, you can save time and effort, and get a better understanding of the costs involved in your mortgage.