Pennsylvania offers the standard type mortgage products, with a majority of the loans being fixed rate conventional loans backed by Fannie Mae or the VA. Pennsylvania has one of the highest rates of conventional mortgage products being used in the country. Because of the high cost of homes in many areas of the state, loam limits through the federally backed programs have been significantly increased, all but eliminating the need for jumbo mortgages. Adjustable rate mortgages are available in the state, but come in way behind the standard 30 year fixed rate loan.
Pennsylvania Mortgage Rates
Mortgage rates in Pennsylvania are higher than in most states in the country, but very similar to other states in the North East. Because Pennsylvania has some of the highest cost real estate in the country, mortgage rates reflect this additional risk. Federally backed programs often help to reduce the interest rates on conventional loans. Credit risk, employment, loan to value ratio and other financial factors will play a role in determining end interest rate. Bad credit mortgages will carry a higher interest rate than a regular loan. Pennsylvania has many first time home buying programs that allow for lower interest rates on this type of purchase.
Pennsylvania Refinance Rates
While higher than in most states, Pennsylvania refinance rates are very close to their standard mortgage rates. Refinancing will be based on the same credit criteria that a regular mortgage requires. Available equity, and if the equity is accessed, will also play an important part in deciding the refinance rates. Some smaller lenders will offer lower than average refinance rates as a way to gain business from the larger banks, consumers will need to bargain hunt when refinancing.
Pennsylvania Mortgage Brokers And Lenders
Pennsylvania has all the large lending institutions available in the state offering mortgages. Private lenders as well as internet lenders and major banks all play a significant role in making mortgages in the state. Private small town banks also make mortgages in Pennsylvania, and these mortgagees are often held in trust in that bank instead of being sold off to a processing company. Credit unions can issue mortgages in the state if they meet all legal requirements. Different lenders will offer different promotions and programs for mortgages in the state. Some lenders will even allow borrowers to purchase points to reduce their interest rate.