Pennsylvania Mortgage Rates | PA Mortgage Loan

 Whether you’d like to purchase a Philadelphia condo, a modest Lancaster County home in the heart of Amish Country, or a Harrisburg farmhouse off of Interstate 81, finding an affordable and hassle-free mortgage is likely one of your top priorities. We’re here to help prospective homebuyers in Pennsylvania find the best mortgage type and accredited PA mortgage lender for their needs.

 

How Much Can You Afford?

One of the most important aspects of the home-buying process is to determine your financial limits. To create a true-to-life budget, ask yourself the following questions:

  • What is my current income?
  • On average, how much money do I currently spend each month, and how much am I able to save?
  • Given my monthly income (after taxes), how much can I afford to pay each month on a mortgage?
  • How much money can I come up with for the initial down payment?
  • How much do I spend each month to pay off other debts, such as student loans or credit card debt?
  • Do I expect to get a raise in the future?
  • How secure is my current job?
  • How much will homeowner’s insurance cost?
  • How much will property taxes cost?
  • Are current interest rates expected to increase or decrease?

 

Answering these questions will help you to not only determine how much you can afford to spend on your Pennsylvania mortgage, but also which type of mortgage could be right for you.

 

Types of Mortgages in Pennsylvania

There are several types of Pennsylvania mortgages to choose from. Once you determine your budget, speak with your Pennsylvania mortgage lender about which PA home loan is right for you.

  • Fixed Rate Mortgage: This PA mortgage type has the same mortgage rate and monthly payment amount for the entire life of the loan.
  • Adjustable Rate Mortgage: This Pennsylvania mortgage type has a variable interest rate and monthly payment amount. The interest rate may rise or fall depending on current market rates.
  • Interest Only Mortgage: This PA mortgage type has two different payment periods. During the initial period, the borrower is only responsible for interest payments, meaning that their monthly mortgage payment is quite low. After the initial interest-only period, the borrower pays interest and principal.
  • Reverse Mortgage: With this mortgage, Pennsylvania residents over the age of 62 can convert their home equity into cash. Loan repayment begins when borrower sells the home, moves to a different residence, or passes away.

 

Should I Get a Short- or Long-Term Loan?

Pennsylvania mortgage terms vary; depending on your needs, you can get a term for 10, 15, 20, 30, or 40 years. The most popular PA mortgage terms are 15-year and 30-year. Thirty-year loans are popular because, in general, people try to play it safe when buying a home. They don’t want to get in over their head, and figure that if they earn more money, they’ll just pay off the 30-year loan early. The truth is, though, that a majority of people don’t pay off a mortgage early, even if their income increases. Other living expenses or priorities get in the way.

 

If you are financially-disciplined and believe that you’ll be able to pay off your PA mortgage within 15 years, you should get a 15-year mortgage. Why? Suppose you have a $200,000 mortgage. If your loan term was 30-years at 7%, you would pay over $150,000 more in interest than if your loan term was 15-years (at a lower rate of 6.5%). As you see, getting a shorter loan term not only means a lower interest rate, but also a savings of thousands of dollars in accrued interest.

 

Getting a Top-Rated PA Mortgage Lender

Simply tell us your Pennsylvania home-buying needs and ambitions, and we’ll match you with a top-rated PA mortgage lender. Contact us today for a free mortgage rate quote and before you know it, you’ll be opening the door to that beautiful Tudor in Scranton, the 19th century Victorian on the outskirts of Pittsburgh, or a mountain cabin in the Poconos!