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• Mortgage rates in York, Pennsylvania, are influenced by a variety of factors, both economic and specific to the borrower.
• Fixed-rate mortgages mean stable monthly payments; adjustable-rate mortgages (ARMs) often start with lower rates.
• By improving your credit score and reducing your debt-to-income ratio, you can lower your mortgage rate.
• First-time homebuyers in Pennsylvania can take advantage of assistance programs.
• Exploring mortgage rates from multiple lenders can help you find the best option.
Introduction to Mortgage Refinance Rates
Mortgage interest rates are a critical aspect of home financing and significantly impact the overall cost of purchasing a home. This guide aims to help you understand the factors that determine mortgage rates in Pennsylvania, specifically in York, and how you can work toward securing the lowest home loan rate possible. To start, especially if you are buying your first home, it might help to understand how lenders decide on your rate in the first place.
Mortgage interest rates are the fees charged by lenders for borrowing money to purchase a home. These mortgage rates are determined by a complex combination of factors that can be separated into two buckets: the state of the economy and the borrower’s financial status.
Where Mortgage Rates Come From
The factors that influence mortgage rates are somewhat complex. The bond market, particularly the 10-year U.S. Treasury Note, is a key indicator. When the yield on the T note goes up, rates on mortgages are likely to follow. The housing market also plays a role. If the housing market is slowing down, you might be able to get a better rate. The overall economy and the health of the job market are other factors that can affect the rates lenders offer. When the economy is doing well, rates tend to go up. When the economy is in trouble, rates tend to go down.
Lenders will use these indicators to set a general rate, but to come up with your specific loan offer, they will also examine the following:
• Your credit score A conventional mortgage (one not backed by a government agency) typically requires a score of 620 or more. The higher the score, the lower the rate you’ll likely obtain.
• Your down payment amount Making a larger down payment can result in a lower interest rate because lenders perceive a lower default risk.
• Your debt-to-income (DTI) ratio In general, mortgage lenders like to see a DTI ratio of no more than 36%, though that is not necessarily the maximum.
See how your debts may affect your mortgage
Use SoFi’s debt-to-income calculator to determine your personal DTI number.
How Interest Rates Affect Home Affordability
Why spend time studying interest rates and polishing your credit score? Mortgage rates play a pivotal role in the overall affordability of a home. It’s not unusual in York to need to borrow around $200,000 to buy a home. If you obtained that loan with a 30-year term at a 6.50% interest rate, your monthly payment would be $1,264. But if your interest rate was 7.00%, you would be paying $1,330 each month. Over 30 years, that seemingly small difference in interest rate adds up to almost $25,000, as you can see from the chart below.
Interest Rate
Monthly Payment
Total Interest
6.00%
$1,199
$231,677
6.50%
$1,264
$255,085
7.00%
$1,330
$279,021
7.50%
$1,398
$303,403
8.00%
$1,467
$328,309
York Mortgage Rate Trends
Historical U.S. Mortgage Rates
Understanding historical mortgage rates can be helpful as you decide when to apply and what kind of rate you might want to lock in. While rates have gone up in the last few years, they are still relatively low compared to significantly higher rates of, say, the 1980s. The graph shows a half-century of average mortgage rates. The chart shows how Pennsylvania has tended to stack up against national averages (the Federal Housing Finance Agency stopped compiling state averages after 2018.)
Year
Pennsylvania Rate
U.S. Rate
2000
7.97
8.14
2001
7.00
7.03
2002
6.53
6.62
2003
5.78
5.83
2004
5.85
5.95
2005
6.02
6.00
2006
6.49
6.60
2007
6.31
6.44
2008
6.04
6.09
2009
5.16
5.06
2010
4.85
4.84
2011
4.59
4.66
2012
3.65
3.74
2013
3.90
3.92
2014
4.20
4.24
2015
3.96
3.91
2016
3.76
3.72
2017
4.07
4.03
2018
4.58
4.57
Source: Federal House Finance Agency
Types of Mortgages Available in York
In York, the type of mortgage loan you choose will also have an impact on your rate. By exploring these common types, you can find the best mortgage rates in York and the repayment plan that works for you.
Fixed-Rate Mortgage
Fixed-rate mortgages are popular, especially with first-time buyers. With this loan type, the interest rate you start with stays the same for the life of the loan. That means your monthly payments remain predictable, which can be a huge relief when you’re planning your budget. You can choose from terms of 10, 15, 20, 30, or even 40 years, tailoring your mortgage to fit your financial goals and your life. Remember that the shorter the term, the higher monthly payments will be — but the less interest you’ll likely pay over the life of the loan.
Adjustable-Rate Mortgage (ARM)
Adjustable-rate mortgages (ARMs) typically offer a lower initial rate than fixed-rate loans, which can be a draw for those planning to sell or refinance within a few years. After the introductory fixed-rate period, however, the rate can adjust based on the market. It’s a bit of a gamble — rates could go up, and so could your monthly payments. But for homebuyers in York who can tolerate the uncertainty, an ARM is often a great solution.
FHA Loan
With the backing of the Federal Housing Administration, FHA loans open doors to homeownership with more relaxed eligibility criteria than conventional loans. A minimum credit score of 580 is all you need to secure a 3.5% down payment. And those with scores from 500 to 579 can also potentially qualify for an FHA loan with a 10% down payment.
VA Loan
VA loans are a fantastic opportunity for eligible active-duty military members, veterans, reservists, National Guard members, or surviving spouses. One of the most significant benefits of a VA loan is that it typically doesn’t require a down payment, making it a great option for you if you have limited savings. If you’re in York and you’re looking for competitive mortgage rates, consider whether you might qualify for a VA loan.
Jumbo Loan
In most areas of Pennsylvania, including York, the conventional mortgage loan limit is $806,500 for a single-family home. If you have your eye on a property that will require a mortgage in excess of this amount, you’ll require a jumbo loan to call it home. These specialized loans can come with stricter qualification criteria, but they’re still a great option for purchasing your dream home in York.
Compare current home interest rates by state and find a mortgage rate that suits your financial goals.
Select a state to view current rates:
Should You Wait for Interest Rates to Take a Tumble?
If you’re a homebuyer in Pennsylvania, you might be pondering whether to bide your time for a more favorable interest rate. The current outlook suggests that mortgage rates in Pennsylvania are set to hold steady in the near future. Fannie Mae projections point to an average of 6.30% by the close of 2025. While the prospect of waiting might seem alluring, it’s worth noting that buyers who move forward can do a mortgage refinance should rates become more favorable down the line. And buying now means you begin to build equity in the property.
The Cost of Living in York
York is a relatively affordable city, with a cost of living that’s five points below the national average. Food, housing, and health care are all more affordable here than the national average. No wonder York made SoFi’s list of the best affordable places in the U.S. The housing market is very competitive, with many homes getting multiple offers. However the median sale price of a home in York is just $150,000 — that’s less than half of the U.S. average, according to Redfin.
Get Your Best Possible Rate in York
To secure the best possible mortgage rates in York, you’ll want to focus on your credit score, which can have a big impact on the interest rate you qualify for. Check your credit report for errors, and request corrections if necessary. And of course, pay every bill on time. You’ll also want to aim for a low debt-to-income (DTI) ratio, which is the percentage of your monthly gross income that goes toward paying debts. So to the extent possible, try to pay down some debt before applying for a home loan.
If you can make a larger down payment, you may be able to secure a lower rate. Going through the mortgage preapproval process with a lender can give you a clear picture of what size mortgage you might qualify for and what your rate and payments would look like. Having that preapproval letter to show sellers could also be helpful in York’s hot housing market.
Helpful Tools & Calculators
A mortgage payment calculator can give you a good idea of what your monthly payments might be, as well as the total interest costs over the life of the loan. And it’s not the only calculator you’ll find useful during your home search. These are three of our favorites:
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
How to Evaluate Loan Offers in York
A competitive mortgage rate is a game-changer, potentially saving you thousands. The key to getting one is to compare rates and fees from various lenders, with a focus on the APR, or annual percentage rate, which includes fees and closing costs. (Lenders will disclose the APR in their loan information.) Once you’ve found an offer that shines, consider locking in your rate for up to 90 days, especially if you sense rates are on the upswing.
York Mortgage Resources
York offers several programs to aid homebuyers, especially those who qualify as a first-time homebuyer or who have limited financial means. The Pennsylvania Housing Finance Agency (PHFA) is your best resource, with offerings like the Keystone Advantage Assistance Loan program and the HOMEStead Down Payment and Closing Cost Assistance Loan. Down payment assistance programs and loans with forgiving terms can significantly ease the financial load of purchasing a home. And don’t forget to explore local York programs for added support.
If you’re buying a home in York, you can expect to pay between 2% and 5% of your loan amount in closing costs. These costs can vary based on the price of the home you’re buying and where it’s located. They can include loan origination fees, the cost of an appraisal, and title insurance. To keep your costs down, make sure to shop around for the best rates. In some markets, buyers can negotiate with sellers to help cover some costs, although this might not be feasible in York’s relatively competitive market.
The Takeaway
York, Pennsylvania offers a range of mortgage options for prospective homebuyers in the area. By staying informed about current mortgage rates in York and carefully exploring available assistance programs, you can make a strategic decision about your mortgage type, term, and rate that aligns with your financial goals.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
How do Pennsylvania mortgage rates compare to the national average?
Pennsylvania’s mortgage rates are usually on par with the national average, or ever so slightly above it, according to state average data compiled by the Federal Housing Finance Agency.
What sets fixed-rate and adjustable-rate mortgages apart?
Fixed-rate mortgages offer stable interest rates, whereas adjustable-rate mortgages (ARMs) may start with a low introductory rate for a fixed time period, but then begin to adjust at regular intervals according to the market. This means that if you have a fixed-rate mortgage, your monthly payments will stay the same for the life of the loan, whereas if you have an ARM, your monthly payments will change now and then.
Will mortgage rates ever go back to normal?
Historical data suggests rates could return to more stable levels over time. Keep an eye on economic factors and your personal financial needs.
How do mortgage interest rates work?
Mortgage interest rates are the cost of borrowing. The rate is expressed as a percentage. The interest rate you receive is based on your credit score, down payment, and employment history, as well as current economic conditions.
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¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
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