Overview of Pennsylvania Mortgages
Over the last decade or so, Pennsylvania mortgage rates have been mostly above national averages. If you move to Pennsylvania, your monthly mortgage payment will depend not only on your mortgage rate, but also your down payment, home purchase price, property taxes and homeowners insurance.
|30 year fixed||3.25%||3.47%||-0.22|
|15 year fixed||2.40%||2.48%||-0.08|
|30 yr fixed mtg refi||3.20%||3.44%||-0.24|
|15 yr fixed mtg refi||2.44%||2.46%||-0.03|
|7/1 ARM refi||2.13%||2.19%||-0.06|
|15 yr jumbo fixed mtg refi||2.98%||3.01%||-0.03|
National Mortgage Rates
Historical Mortgage Rates in Pennsylvania
Pennsylvania Mortgage Rates Quick Facts
- Median Home Value: $192,600 (U.S. Census Bureau)
- Loan Funding Rate: 54.91% (CFPB)
- Homeownership Rate: 69.2% (St. Louis Fed)
- Median Monthly Homeownership Costs: $1,494 (U.S. Census Bureau)
With plenty of American historical sites, stunning national forests and Philly cheesesteaks, Pennsylvania has it all. The Quaker State is also one of the most populous in the U.S.
Pennsylvania mortgage rates are usually a bit above national averages.
A financial advisor in Pennsylvania can help you plan for the homebuying process. Financial advisors can also help with investing and financial plans, including tax, retirement and estate planning, to make sure you are preparing for the future.
Pennsylvania Historic Mortgage Rates*
|Year||Pennsylvania Rate||U.S. Rate|
*The FHFA stopped reporting new data in 2018.
Pennsylvania Mortgages Overview
Houses in the Quaker State are more affordable than those in many other parts of the country. In fact, the median Pennsylvania home value is $192,600, which is well below the national median of $240,500.
The conforming limit for every Pennsylvania county, save for Pike, is standard at $548,250. In Pike, this cap spikes to $822,375. FHA loan limits vary much more across the state, though most counties sit at the standard $356,362 limit. Again, Pike County has the highest FHA limit also at $822,375.
Conforming and FHA Loan Limits by County
|County||Conforming Limit||FHA Limit|
Pennsylvania sellers must provide buyers with property disclosure statements. These statements include information on sewage disposal, insulation and the quality of the home structure. Despite this, a home inspection is always a good idea, as it helps the buyer feel confident that they are not going to run into major issues down the road.
30-Year Fixed Mortgage Rates in Pennsylvania
Looking for a mortgage in the Keystone State? The first option you should know about is a 30-year fixed-rate mortgage. This loan option gives buyers a long time to pay off the loan (30 years) and the interest rate remains the same for that entire time, making it easier to budget monthly payments as they stay constant.
Fixed rate mortgages are also offered in various increments from 10 to 40 years. The second-most popular fixed-rate term after a 30-year is a 15-year term. With a 15-year mortgage, you will be paying off the same amount of money in less time so your monthly payments will be higher despite generally having a lower interest rate.
The average Pennsylvania rate for a fixed 30-year mortgage is 2.77% (Zillow, Jan. 2021).
Pennsylvania Jumbo Loan Rates
Most Pennsylvania counties have conforming loan limits of $548,250. As mentioned previously, Pike County is the sole area in the state which has a conforming limit of $822,375. This is an indication of the overall affordability of purchasing real estate here. If you take out a home loan that is greater than the conforming loan limit in that county, you will have what is called a jumbo loan. These outsize loans are considered riskier for lenders as greater amounts of money are on the line. Before you take on a jumbo loan, you should know that they are accompanied by higher interest rates. From a lender’s perspective the higher interest rate is a fair trade-off for the bigger risk. Oddly enough, jumbo loan rates are currently lower than fixed rates.
The average 30-year fixed jumbo loan rate in Pennsylvania is 2.59% (Zillow, Jan. 2021).
Pennsylvania ARM Loan Rates
Another mortgage option is an adjustable-rate mortgage (ARM). An ARM typically offers a lower interest rate than a fixed-rate mortgage for an introductory period between one and 10 years. (The exact length of time depends on the loan’s terms.) Once that period ends, the interest rate can change by going up or down, though it usually goes up. There are a few things you should keep in mind when considering whether an ARM is the right option for you. The first is that the number of times the interest rate can change over the life of the loan is stated in the terms. Similarly, the terms will specify the maximum possible height that the interest rate can reach. This means that you do know what you are getting into before you choose an ARM. It is critical that you carefully consider this maximum potential interest rate and decide whether it is one that fits within your budget. Note that in Pennsylvania currently, ARM rates are higher than both fixed and jumbo loans.
The average rate for a 5/1 ARM in Pennsylvania is 3.04% (Zillow, Jan. 2021).
Pennsylvania Mortgage Resources
Keystone State buyers can apply for programs that help provide financial assistance for the homebuying process.
The Pennsylvania Housing Finance Agency provides loans for qualified buyers. PHFA loans offer fewer fees, down payment and closing cost assistance and up to $2,000 annually for the Mortgage Tax Credit Certificate.
The PHFA also provides funding for home restoration and repairs. These programs include the Access Home Modification Program, Renovate & Repair, Purchase Improvement Loan and PENNVEST Homeowner Septic Program.
|Resource||Problem or Issue||Who Qualifies|
|Pennsylvania Housing Finance Agency||Homeownership loans, down payment/closing cost assistance, renovation funding.||Income-eligible PA residents.|
|USDA Rural Development - Single family loans||Offers payment assistance to increase an applicant’s repayment ability.||Applicants must be without decent, safe and sanitary housing; Be unable to obtain a loan from other resources on terms and conditions that can reasonably be expected to meet; Agree to occupy the property as your primary residence; Have the legal capacity to incur a loan obligation; Meet citizenship or eligible noncitizen requirements; Not be suspended or debarred from participation in federal programs.|
Pennsylvania is part of the United States Department of Agriculture Rural Development program, which offers aid for safe, affordable housing. Loans and grants are offered to residents who are buying new homes (or repairing current homes) in rural areas.
Pennsylvania Mortgage Taxes
In Pennsylvania, there is a real estate documentary stamp tax of 1%. County rates vary widely, but typically the buyer and seller split this fee.
Like much of the U.S., homeowners in Pennsylvania are allowed to deduct the mortgage interest they pay from their taxable income when they file their federal income taxes. In some states, owners can also deduct mortgage interest when they file their state income taxes. However, as Pennsylvania is one of a handful of states that does not allow itemized deductions, this rule does not apply here.
Pennsylvania Mortgage Refinance
Refinancing in Pennsylvania? A resource that's available to you is the High Loan-to-Value Refinance Option from Fannie Mae. These are essentially the replacements for the Home Affordable Refinance Program (HARP), which was cancelled in 2018.
Best Places To Get A Mortgage
SmartAsset’s interactive map highlights the best counties in the U.S. (and in each state) for securing a home mortgage. Hover over states and counties to see rankings and data points for each region, or use the map’s tabs to view the top counties for each of the factors included in our analysis.
Methodology In order to determine the best places in the country to get a mortgage, our study compared four factors, including overall borrowing costs, likelihood of securing a mortgage, property taxes and annual mortgage payments.
To calculate the overall borrowing costs, we analyzed the expected costs throughout the first five years for a $200,000 mortgage with a 20% down payment, including closing costs. We calculated the ease of getting a mortgage as the ratio of mortgage applications to mortgage originations (secured mortgages) in each county. Annual mortgage payments are a measure of the annual principal and interest payments for a $200,000 loan in that location using average mortgage rates in each county.
Finally, we ranked locations based on these four factors, giving equal weight to each factor. The areas with the lowest average rankings are the best places to get a mortgage.
Sources: Mortgage Bankers Association, US Census Bureau 2018 5-Year American Community Survey, Informa, Bankrate, government websites, SmartAsset