Pennsylvania Mortgage Rates
Compare Pennsylvania mortgage rates and choose the best option for your needs.
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Purchase
Purchase
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- As low as 3% down on a fixed-rate mortgage
- Fed finally cuts rates!
- Down payments as low as 1%
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- Calculate a Payment for $0
- Minimum 620 credit score needed to prequalify
- 0% down USDA loan for rural homebuyers
- 97% of borrowers would recommend to friends or family
Mortgage in Pennsylvania: Top Lenders in 2024
Willing to buy a home in Pennsylvania State? The easiest way to do so is to use a mortgage loan, which is effective irrespective of what type of property you are searching for – a residential estate or an apartment. However, the home loan terms offered by different mortgage lenders can vary greatly (use our mortgage calculator to estimate your future expenses). In the framework of this guide, we’ll review some of the top-rated lenders and try to find out which ones are worth considering.
PA Mortgage Lenders Comparison
All the lenders reviewed are trustworthy companies with reasonable rates and solid track records. To give you the most detailed information, we’ll compare them by several key criteria – an APR, the minimal down payment, minimal requirements, and so on.
Quicken Loans Mortgage
Quicken Loans is the previous brand name of Rocket Mortgage, the US-wide leader in capitalization across consumer lenders, adopted in 1999. As such, you receive the same options, terms, and services as with the latter. These range from simple conventional mortgages (with fixed or adjustable rates), to jumbo loans, home equity, HELOCs, and federal-insured programs (FHA and VA), available for purchase and refinancing.
Conventional loans require at least a 620 credit score. The advertised APR for a 30-year fixed-rate mortgage is 7.199%, which is on the higher side as far as similar offers are concerned. The lender operates in all states, as well as Washington D.C.
| Pros: | Cons: |
|---|---|
| High availability. | No construction loans. |
| Easy application process. | Rates above the market average. |
| Plethora of experience. |
PenFed Credit Union
Pentagon Federal Credit Union started in 1935 and was at first aimed exclusively at service members. Nowadays, however, everyone can apply.
The APR values are 5.596% for a conventional 15-year, 6.078% for a 20-year, and 6.548% for a 30-year mortgage, respectively (for a good 700 – 739 credit score and 20% down payment). The minimum satisfactory credit score is as high as 650 for a conventional loan and 700 for a non-conforming jumbo loan. For FHA options, a typical value of 620 is enough.
| Pros: | Cons: |
|---|---|
| Doesn’t charge lender fees. | The lender does not support USDA-insured plans. |
| Allows calculating rates on the spot – without filling out any annoying forms. | The mortgage application process requires a preliminarily completed online form and a deposit of $5 into a savings account. |
| The lender provides nationwide coverage. |
First Citizens Bank
First Citizens Bank is among the oldest and largest banks in the United States that serve retail customers.
Mortgages are issued with fixed or adjustable (increasing) interest rates. The fixed APR makes up 6.289% for a 15-year, 6.256% for a 20-year, and 6.602% for a 30-year mortgage under perfect conditions. The APR can be lowered by buying points (upfront payments equivalent to 1% of the principal). The bank demands a minimum of two years of employment, a credit score of 620 or more, and a DTI of no more than 43%.
| Pros: | Cons: |
|---|---|
| Extremely well-established. The bank has been around since forever, engaging in a broad variety of financial services. | The website is scanty concerning lender fees (e.g., an underwriting fee can be expected). |
| Offers variable-rate mortgages. These can be especially handy if you plan on selling or refinancing. |
Average Mortgage Rate in Pennsylvania from 1978 to 2018
The chart shows average conventional mortgage 30-Year Fixed Rates in Pennsylvania.
Source: Federal Housing Finance Agency Monthly Interest Rate Survey
Information about the Housing Market and Real Estate Prices in Pennsylvania
| Criteria | Amount, $ |
|---|---|
| The median home value in Pennsylvania | $246,823 |
| The income required to buy the median priced home in Pennsylvania | $40,441 |
| The monthly mortgage payment required to buy the median priced home in Pennsylvania | $937 |
| The median household income for Pennsylvania | $70,799 |
Things to Consider When Choosing a Mortgage Lender
A mortgage loan implies undertaking a serious commitment for a term of 15 through 30 years. So you need to think twice before signing an agreement with this or that lender. There are some core aspects to consider when choosing a lending entity.
Type of Lender
Basically, there are two popular options – banks and online mortgage lenders. Banks frequently offer attractive rates but they tend to practice strict credit checks. The approval time is longer, and eligibility criteria are quite hard to comply with. Online lenders work much faster, and their requirements for homebuyers are not too severe.
APR and Fees
Every loan has its cost, and mortgage is no exception. This cost is more than just an interest rate. It also includes extra fees, such as the origination fee, mortgage insurance fee, closing costs, etc. As of writing, for a fix-rated 30-year loan, the average mortgage rate in Pennsylvania is 6.58%.
Terms and Conditions
Here, you need to consider the minimum size of a down payment, which often varies from 0% to 20% depending on the loan type, your current status (military, employed, self-employed, etc.). Another important parameter is the lifespan of the loan, which is its total length. Common options are 15 and 30 years.
What Mortgage Lender is the Number One in Pennsylvania?
The list of reliable PA mortgage lenders is extensive, so it's hard to give an unambiguous answer to this question. Everything depends. For example, one of the industry leaders is Rocket Mortgage with a loan volume of $11.5 billion for the year 2021. To take your pick wisely, check our list of recommended lenders.
First-Time Homebuyer Programs in Pennsylvania
Buying a home for the first time is quite challenging. Happily, residents of Pennsylvania can take advantage of some governmental programs aimed at raising mortgage affordability.
- Federal Housing Administration loan program. In its framework, a buyer gets insurance from the federal government. The fee for this insurance is included in the total cost of the future loan. In return for this, the homebuyer gets some serious benefits: a low interest rate and minimal credit requirements. Thus, his FICO score can be as low as 500, and the debt to income ratio – just 50%.
- USDA loan program. It is oriented toward those living in rural areas. The participants of this program can get a mortgage loan with a zero down payment. However, their annual income must not exceed 115% of the average income in this region.
- VA loan programs. They are insured by the Veteran Affairs Department. This mortgage option is available to former militaries or their spouses.
Pre-Approval: What Does It Mean?
Preliminary approval is a sort of confirmation of a prospective homebuyer’s credibility. It lets home sellers know that lenders are ready to approve a mortgage loan to the buyer. To get a pre-approval one needs to provide documentary evidence of his paying capacity. A typical document set includes earning statements, account statements, a W2 form, or an alternative proof of income for at least 2 years. Additionally, it’s necessary to fill in the Uniform Residential Loan Application form.