Pennsylvania Mortgage Rates
Looking for the lowest mortgage rates? Alpine Mortgage, is committed to finding the best rates for you. Below are today's purchase and refinance mortgage rates on our conventional, FHA and VA loan programs for homes in Pennsylvania. For rates on our other loan programs such as investment property loan rates, renovation loan rates, reverse mortgage rates or Non QM loan rates, please reach out to us for a personalized quote. Our goal at Alpine Mortgage is simple: to provide you with the lowest mortgage rates in PA tailored specifically to your needs.
Current Mortgage and Refinance Rates in Pennsylvania
| Loan Program | Rate | APR | Fees | Action |
|---|
The conventional rates shown are based on a loan amount of $525,000 and a down payment of at least 25%. The FHA rates shown are based on a loan amount of $675,500 and a down payment of at least 3.5%. The VA rates shown are based on a loan amount of $700,000 and no down payment. PA Mortgage rates are subject to change at any time and are subject to mortgage approval with full documentation of income. All rates shown are for a 30 day rate lock with one discount point on the purchase or rate and term refinance of a single family primary residence with a 740 or higher FICO score.
Mortgage Programs
Pennsylvania Conventional Loans. Conventional loans are a widely favored financing choice and come with specific requirements, including a minimum credit score of 620 and a minimum down payment of 3%. The interest rates on these loans can vary significantly, depending on the credit score and the size of the down payment. Borrowers who make a down payment of less than 20% must also pay private mortgage insurance (PMI), which can be settled either in full at closing or in monthly installments until the homeowner’s equity in the property reaches at least 20%. These loans can be utilized to purchase a primary home, a vacation home, or an investment property.
Pennsylvania FHA Loans. If your credit history makes it difficult to secure a conventional loan, a FHA loan may be a good alternative. A FHA loan is a loan that is insured by the Federal Housing Administration (FHA). The minimum down payment on a FHA loan is 3.5% with a minimum credit score of at least 580. For borrowers with a credit score as low as 500, it is still possible to get a FHA loan with a larger down payment of at least 10%. Regardless of the amount of your down payment, FHA loans require the payment of mortgage insurance premiums (MIP). FHA loans are available only on a primary residence and the maximum loan amount varies by county. You can view the current PA FHA Loan Limits for all counties in Connecticut.
Pennsylvania VA Loans. Backed by the Department of Veteran Affairs, VA loans offer veterans and their families with home loans with no down payment required. VA loans do not have any mortgage insurance but may have a funding fee that is collected at closing. VA loans are only available on a primary residence.
Pennsylvania Non QM Loans. For borrowers that can't qualify for a conventional, FHA or VA loan because of credit issues or income documentation requirements, we offer several different Non QM loan products. Our Non QM provides flexibility in lending standards for individuals with unique financial circumstances or credit issues such as a recent bankruptcy or foreclosure. These loans can be used to finance a primary residence, vacation property or an investment property.
Pennsylvania Reverse Mortgage Loans. For homeowners that are 62 years or older, a reverse mortgage allows you to access the equity in your home by either receiving a lump sum, fixed monthly payments or a line of credit. Reverse mortgages are only available on a primary residence.
| Loan Type | Min. Credit Score | Min. Down Payment | Occupancy |
|---|---|---|---|
| Conventional | 620 | 3.0% | Primary, Secondary or Investment |
| FHA | 580 | 3.5% | Primary Residence |
| FHA Low Score | 500 | 10% | Primary Residence |
| VA | 620 | None | Primary Residence |
| Non-QM | 500 | 20% | Primary, Secondary or Investment |
Pennsylvania Real Estate & Mortgage Update
Market Conditions. The Pennsylvania real estate market exhibits a mix of steady growth in home values and challenges related to inventory and mortgage rates. Home values in Pennsylvania have increased by approximately 6.4% year-over-year as of March 2024, although the number of homes sold has decreased by 10.4% over the same period. This decline in sales volume is partly attributed to a slight drop in available homes for sale, which fell by 2.6%. The median sales price of homes in Pennsylvania was recorded at $224,757 in March 2024, marking a significant increase of 10.5% from the previous year. However, the market faces challenges with listings decreasing by 11.2% year-over-year, indicating a tighter market with fewer options for buyers.
Mortgage Rate Trends. Mortgage rates have experienced volatility but are showing signs of stabilization. After peaking in October 2023 to the highest level in 23 years, rates decreased slightly to around 7%. Predictions suggest that these rates will stabilize but remain above 6% throughout the second half of 2024, which may continue to impact buyer affordability and market dynamics.
Mortgage Rate Outlook. The market outlook for Pennsylvania in 2024 is cautiously optimistic. While home prices are expected to remain stable or continue rising slightly due to ongoing low supply and high demand, the introduction of more homes into the market could help balance this dynamic. Additionally, more reasonable mortgage rates are anticipated as the year progresses, which could encourage more sales and potentially ease the tight inventory situation For more information, see our Mortgage Rate Forecast for expert predictions on where rates are headed.
PA Mortgage Rates FAQs
Buying a house when interest rates are high isn't generally ideal due to higher monthly mortgage payments. However, if real estate prices are expected to continue rising, delaying a purchase could mean paying more in the long run. Consider the following:
- Cost vs. Benefit: Calculate the long-term cost of buying now versus waiting for a potential drop in rates.
- Renting vs. Buying: Calculate the costs of renting vs. buying. Sometimes renting might be more cost-effective in the short term when rates are high.
- Long-Term Perspective: Real estate typically appreciates over time, so buying at a higher interest rate might still be a worthwhile investment if you plan to stay in the home long enough.
There are several government-backed home loan options available in PA, including FHA loans (which have lower down payment requirements), VA loans (available to veterans and active military), and USDA loans (for rural property buyers).
The process typically starts with getting preapproved before looking at properties. Once a property is selected, a formal mortgage application is submitted. The lender will then conduct an appraisal and then close the loan.
Buying a house when mortgage rates are high can be less cost-effective due to increased monthly payments and total interest costs. However, if home prices are rising, and you plan to stay in the house long-term, the investment could still be worthwhile. Consider your financial stability, compare renting versus buying costs, and think about potential home value appreciation. You could face higher home proces or miss out on your deam home if you are waiting for rates to go down.