Pennsylvania Mortgage and Refinance Rates
As of Saturday, July 24, 2021, current rates in Pennsylvania are 3.04% for a 30-year fixed, 2.34% for a 15-year fixed, and 2.69% for a 5/1 adjustable-rate mortgage (ARM).
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Pennsylvania mortgage overview
By Dhara Singh
Median home values in Pennsylvania are 30 percent lower compared to the national median, making homes more affordable to people who no longer want to rent and are ready to purchase a house. The programs in the state not only assist with the down payment, but also help fund closing costs to make it more affordable for people to buy their first home.
The state also has programs for current homeowners who are looking to buy another home, such as upgrading to a larger one or in a different neighborhood.
The Pennsylvania Housing Finance Agency (PHFA) works with brokers and lenders to offer and process mortgages with low fees and affordable interest rates. The loans are purchased by the PHFA after closing, and the homeowner makes monthly payments directly to the agency.
First-time homebuyer programs in Pennsylvania
The Keystone State offers many first-time homebuyer programs to encourage people to buy their first house, condo or townhome. Learn more about Pennsylvania first-time homebuyer programs.
Through the PHFA, homebuyers can obtain a 30-year, fixed-rate mortgage that has a more affordable interest rate and fewer fees. The loans include conventional mortgages, VA loans, FHA loans or USDA rural development loans. The household income and limits on home prices vary with each program:
- HFA Preferred (Lo MI) loan, which helps homebuyers with lower down payments obtain cheaper private mortgage insurance (PMI). When homebuyers do not have 20 percent for the down payment, lenders require PMI. The program is open to all homebuyers and there are no purchase price limits. Consumers must contribute at least $1,000 toward the down payment.
- Keystone Home loan program serves first-time homebuyers, discharged veterans of the armed forces and buyers of homes in targeted Pennsylvania counties for conventional mortgages, VA loans, FHA loans or USDA loans. Each type of loan has different requirements.
- Keystone Government works with mortgage lenders and brokers to provide homebuyers with affordable mortgages in the form of FHA loans, VA loans or USDA loans. You don’t have to be a first-time homebuyer to apply for this program.
Pennsylvania mortgage refinancing
With interest rates at historic lows, you may be able to lower your monthly payment and save thousands by refinancing your loan to a lower rate. You can use Bankrate’s mortgage refinance calculator to see how much you can save.