If you’re looking to refinance your mortgage in Pennsylvania, your options include:
Current 30 year-fixed mortgage refinance rates are averaging: 7.31%
The current average rate for a 15-year fixed mortgage refinance is: 6.76%
See whether refinancing makes sense for you using our mortgage refinance calculator.Borrowers in the Keystone State may be pleased to hear that the current mortgage rate forecast shows that rates are once again trending in a favorable direction. After peaking at 7.79% last October, mortgage rates began to fall, finishing the year more than a full percentage point lower. Our 2024 predictions for the housing market and overall economy hold that rates will continue to drop this year, spurred mainly by rate cuts from the Federal Reserve.
There are many different factors that go into determining mortgage rates. As a borrower, not all of them are within your control — still, there are a few things you can do to ensure you receive the best possible rate, which include:
Read more about our picks for the best mortgage lenders.
When should I lock in my mortgage rate?Once you’ve received a loan offer from a lender, it’s a good idea to ask about a mortgage rate lock. As the name suggests, a rate lock will ensure that your interest rate won’t increase before you make it to the closing table.
Coming up with enough money to cover the upfront costs of buying a home can be difficult for many buyers. Luckily for PA first-time homebuyers and repeat buyers alike, the state offers many home loan programs that can assist with that financial burden. Here are three of the most notable options.
The Pennsylvania Housing Finance Agency (PHFA) offers conventional loans to low- or moderate-income homebuyers in the state. Open to both first-time and repeat homebuyers, the HFA Preferred™ (Lo MI) loan program offers 30-year fixed-rate loans with affordable mortgage insurance rates for those who plan on putting down less than 20%.
You may be eligible if:
Your gross household income meets the program’s income requirements
Your down payment consists of at least $1,000 of your own funds
You complete a homebuyer education program ahead of closing
The Keystone Flex with Keystone Forgivable In Ten Years Loan Program (K-FIT) combines first mortgage financing with a forgivable second mortgage that can be used for down payment assistance. Available to low- and moderate-income homebuyers, the second mortgage will be worth either 5% of the home’s purchase price or appraised value, whichever is less. After closing, this loan is then forgiven at a rate of 10% per year.
You may be eligible if:
You meet both specific income and purchase price limits
You have a minimum 660 FICO Score
You complete the required homebuyer education program
Aimed at offering low-down-payment loans to low- to moderate-income homebuyers, the Keystone Home Loan Program offers 30-year fixed-rate loan options from both government-backed and conventional sources. The program is primarily aimed at first-time homebuyers, though repeat buyers may qualify as long as they plan to buy a home located within one of the program’s designated target areas.
You may be eligible if:
You meet certain income and purchase price limits
You have a sufficient credit history and can show an ability to make monthly loan payments
You have access to sufficient funds to make the required down payment
→Pennsylvania conventional loans: If you have a decent credit score and sufficient funds for a down payment, you’ll likely be a candidate for a conventional loan. These loans are traditionally considered the gold standard of mortgages, as they adhere to the minimum requirements set by Fannie Mae and Freddie Mac.
→Pennsylvania FHA loans: Meanwhile, FHA qualifying requirements are typically more lenient than the requirements for conventional loans. Borrowers with at least a 580 credit score only need a 3.5% down payment to qualify for one of these loans. However, the program accepts borrowers with scores as low as 500, as long as you can make a 10% down payment.
→Pennsylvania VA loans: Qualified military borrowers in PA may want to take advantage of a VA loan. These loans typically don’t come with a hard-and-fast down payment or mortgage insurance requirement. However, individual lenders may sometimes impose their own qualifying standards.
→Pennsylvania streamline refinances: If you’re looking to refinance an existing VA or FHA loan, you may be eligible to take advantage of a simplified refinance process. The FHA streamline refinance and VA interest rate reduction refinance loan (IRRRL) programs both offer eligible borrowers the chance to refinance their existing home loans with fewer requirements to meet and less paperwork to complete (you’ll just need to refinance into a new VA or FHA loan, depending on the type you began with).
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