Pennsylvania Mortgage Calculator

Best mortgage lenders in Pennsylvania

The most popular mortgage lenders in Pennsylvania operate nationwide. These include such recognizable names as Rocket Mortgage, Pentagon Federal Credit Union, First Citizens Bank.

How to calculate mortgage payment in Pennsylvania

Use our fast and simple mortgage calculator PA to evaluate your future expenses. Detailed step-by-step instructions are provided below for your convenience.

Why and How to Use Our Mortgage Calculator

Use our house payment calculator Pennsylvania for thorough planning of your future spendings. Let’s take a closer look at each field in order to gain a better understanding of the mortgage in Pennsylvania parameters.

The first component of the puzzle is the home price – that is, the amount you plan to invest in your future property. A down payment represents the portion of this price that needs to be paid upfront. To avoid expensive insurance costs, you must provide at least a 20% down payment (in the case of a conventional loan). The remaining amount constitutes the principal, which is typically 80% of the home price when you have a 20% down payment.

The loan term refers to the period within which you'll fully repay your mortgage through scheduled payments. Fixed-rate conforming loans usually have a maximum term of 30 years, while adjustable-rate options typically come with shorter terms.

An interest rate is a fixed or variable percentage of the principal that you'll need to pay over the loan's duration. It's important to note that you're actually charged an annual percentage rate (commonly abbreviated as APR), which isn't exactly the same as the interest rate. While the interest rate makes up the majority of the APR, the latter also encompasses various fees, such as origination fees, closing costs, insurance payments, and more.

For a more precise assessment, the interest rate used for these calculations is based on the current mortgage rates in Pennsylvania, assuming a $400,000 home price and a 10% down payment.

Median property taxes in Pennsylvania counties

The property tax is another essential factor to consider when selecting your future house. Many lenders insist on establishing a mortgage escrow account to ensure that the borrower keeps up with tax and insurance costs.

Source: American Communities Survey 2016, U.S. Census

Pennsylvania Housing Market 2024

The past year has witnessed a significant rise in the housing market's value in Pennsylvania. This trend has been ongoing for a while and was further accelerated by the COVID-19 pandemic. However, the rate of growth has slowed compared to the previous year, while both purchase and refinance rates have been steadily increasing and are expected to continue rising in the near future.

How do I calculate my mortgage payment?

The easiest method to accomplish this is by utilizing our calculator. It operates based on a straightforward formula, which you can also apply manually to calculate the amount to be paid.

M = P*i(1 + i)^n / (1 + i)^n – 1

M – estimated monthly mortgage payment;

P – principal;

I – monthly interest rate (to determine it, divide your annual mortgage rate by 12);

N – the loan term expressed in months (in other words, the overall number of monthly payments)

Imagine you are applying for a 15-year mortgage loan with a fixed 6.99% APR (expressed as 0.0699 as a decimal). The house costs $500,000, and you plan to make a 10% down payment, which amounts to $50,000. Therefore, the principal amount (P) will be $450,000, which is 90% of the initial home cost ($500,000 - $50,000 = $450,000).

I = .0699 % / 12 = .005825%.

Finally, let’s convert the loan length from years to months: N = 15 * 12 = 180.

M ($) = 450,000*.005825(1 + .005825)^180 / (1 + .005825)^180 – 1 ≈ 4042.

So, you are going to pay about $4042 a month.

It is important to note that the calculated M value is approximate, as no extra fees are taken into account.

Tips for first-time home buyers in Pennsylvania

First and foremost, it's essential to be aware of several federal agencies like USDA, FHA, and VA that offer loan guarantees to eligible borrowers. These agencies provide numerous options tailored to the budgets of many first-time homebuyers.

In addition to these government-backed programs, it's worth exploring the opportunities offered by the UHC (Pennsylvania Housing Corporation) for residents of Pennsylvanians. Specifically, first-time homebuyers who qualify for an FHA loan with a FICO score of at least 660 can apply for the FirstHome program. This program provides assistance for down payments and closing costs, covering up to 6% of the loan amount. It's important to note that this assistance is in the form of a 30-year-fixed-rate second loan. If you don't meet the qualifications for the FirstHome program, don't lose hope. The Pennsylvania Housing Score Loan is an alternative program that covers up to 4%, with a minimum acceptable credit score of 620.

Here are some valuable tips for first-time homebuyers:

1. Obtain pre-approval in advance. This step enhances your credibility in the eyes of home sellers. It's advisable to obtain pre-approval letters from not just one, but ideally two or three different lenders.
2. Compare various mortgage rates. Consider at least three different lenders to get a comprehensive view of available options.
3. Conduct preliminary calculations based on your pre-approved amount. Plan your future expenses accordingly.
4. Save for a down payment as much and as early as possible. A larger down payment reduces the principal amount, which can lead to lower overall expenses. Therefore, it's crucial to start saving well in advance.
5. If you are eligible for a VA loan, prioritize this option.
6. Explore government-backed plans and local assistance programs. These may present enticing offers that shouldn't be overlooked.
7. If possible, work on paying off previous debts to improve your financial standing.