PENNSYLVANIA MORTGAGE REFINANCE RATES TODAY
Current mortgage refinance rates in
Pennsylvania.
Current mortgage refinance rates in
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Compare mortgage refinance rates in Pennsylvania.
Key Points
• You could save money on your mortgage by refinancing when rates drop due to shifts in Fed policy, inflation, and the bond market.
• Even a 1% drop in your refinance rate could translate into significant monthly savings, potentially slashing hundreds off your payments.
• Mortgage refinance rates have seen quite the journey over the years, hitting record lows in 2020 and then gradually climbing back up.
• VA refinances, supported by the U.S. Department of Veterans Affairs, often boast some of the most competitive mortgage refinance rates, making them a valuable option for eligible homeowners.
• Refinancing to a 15-year mortgage can reduce the total interest paid over the loan’s life, even with higher monthly payments, potentially saving you hundreds of thousands of dollars.
• Before refinancing a mortgage in Pennsylvania, it’s important to weigh the potential savings from a lower interest rate against the costs, which can include lender fees, points, and closing costs (typically 2% to 5% of the loan amount).
Introduction to Mortgage Refinance Rates
To start, a quick definition: A mortgage refinance is when you replace your current home loan with a new one. The new terms can be more favorable than your existing ones, and you may be able to get a lower interest rate.
There are an array of motivations to refinance, whether you live in Pennsylvania or elsewhere. Perhaps you are looking to lower your monthlies, or maybe you want to tap some of your equity for a kitchen renovation.
This guide will help you understand how mortgage refinance rates work and how to get the best rate in today’s market, with a focus on those with properties in Pennsylvania.
💡 Quick Tip: Some lenders offer a so-called no-closing-cost refinance. However, that usually means either rolling the closing costs into the new mortgage principal or exchanging them for a higher interest rate.
Where Do Mortgage Refi Interest Rates Come From?
Mortgage refinance rates are influenced by a variety of economic factors and your personal financial profile.
In terms of economic factors, the most important considerations include Fed policy, inflation, and housing inventory. For instance, the bond market, especially how the 10-year U.S. Treasury Note performs, plays a key role in determining current mortgage rates. When the yield on the Treasury Note rises, mortgage interest rates tend to increase as well.
In times of high inflation, mortgage rates tend to climb, but when inflation is in check, you might see them dip. The Fed’s monetary policy and the bond market also play their parts in this financial symphony. Knowing more about these factors can empower you to make the best decision about when to refinance your mortgage.
Also take note of your own personal financial profile. Having a strong credit score is an asset, which is determined by such factors as your history of on-time payments, your credit utilization ratio, and your credit mix (say, having responsibly managed both installment loans and lines of credit).
How Interest Rates Affect Home Affordability
When you’re looking to refinance your mortgage, interest rates play a major role in what you can afford. Your monthly payment is based on the loan amount, the term of the loan, and the interest rate. For example:
• A $200,000 loan with a 6.00% interest rate and a 30-year term has a monthly payment of $1,199.
• The same home loan with an 8.00% interest rate has a monthly payment of $1,467.
A lower interest rate could end up saving you tens of thousands of dollars over the loan term, which could have a big impact on your financial health. It could play an important role in achieving your long-term goals as well, by helping you have enough money to, say, start your own business or finance your child’s college education.
Why Refinance in Pennsylvania?
Refinancing your mortgage in Pennsylvania can be a smart financial move, but it does require some careful consideration. If current interest rates are lower than your existing mortgage, it might be a good time to refi. Worth noting: You’ll typically want to have at least 20% equity in your home before refinancing, especially if you’re cashing out some equity.
Common Reasons to Refinance a Mortgage
Homeowners refinance for various reasons. Your decision will reflect your unique situation and needs. Among common motivations are:
• Lower interest rates due to market changes or credit that has been built.
• A change in repayment term for lower monthly payments or faster payoff.
• Cashing out home equity for expenses like education.
• A switch from an adjustable to fixed-rate loan for peace of mind, especially when it seems rates are likely to rise.
• Elimination of FHA mortgage insurance for loans with less than 10% down.
How to Get the Best Available Mortgage Refi Interest Rate
Knowing refinance rates is crucial for homeowners in Pennsylvania looking to make smart financial moves. To secure a competitive mortgage rate, follow this advice:
• Compare rates from multiple lenders.
• Prequalification can be a smart move to see your borrowing power and rates without triggering a hard credit check.
• Compare APRs vs. interest rates, which include interest, fees and discount points.
• Evaluate if lower rates trigger higher costs.
• Use a calculator to estimate your savings.
💡 Quick Tip: Wondering how to refinance a mortgage? The process, which takes about 30 to 45 days, is similar to when you got your original home loan.
Understand Trends in Pennsylvania Mortgage Interest Rates
In general, mortgage rates have certainly seen their share of ups and downs in recent years. National trends, of course, can have a direct impact on mortgage refinance rates in Pennsylvania. Here’s a closer look.
Historical U.S. Mortgage Interest Rates
To pull back and look at the big picture, it’s worth acknowledging that mortgage refinance rates have been quite the rollercoaster over the past few decades. In the early 2000s, 30-year fixed mortgage rates hovered around 7.00%, only to plummet to an unprecedented 3.15% in 2021. Fast forward to 2023, and rates were back at 7.00%. And although there were expectations of a decline in 2024, Freddie Mac’s early 2025 predictions hinted at a prolonged period of higher rates.
These fluctuations are the result of a complex interplay of economic factors, Federal Reserve strategies, and market behaviors.
For you, the homeowner, knowing this history can be a powerful tool when you’re wondering how soon to refinance a mortgage. A lower rate could mean substantial savings on your monthly payments and overall interest costs. Timing your refi right can be worth waiting for.
Historical Interest Rates in Pennsylvania
Pennsylvania’s mortgage refi rates often mirror the national landscape. In 2020, the state enjoyed record lows, and since then, rates have risen. It’s crucial for you, as a homeowner, to keep your finger on the pulse of these changes to make the best decisions about refinancing. Staying informed about mortgage refinance rates can be a game-changer, potentially saving you thousands over the years.
Here’s a look at the last quarter century. (Note: The Federal Housing Finance Agency stopped compiling state averages after 2018.)
| Year | Pennsylvania Rate | National 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 |
Choose the Right Mortgage Refi Type
It’s no secret that refinance rates can be a bit higher than purchase mortgage rates. But here’s the thing: The actual rate you’ll get can vary a lot depending on the type of refinance you choose. There are several different mortgage refinance options, each with its own unique features and potential benefits.
By understanding the differences between them, you can make a more informed decision about which type of refinance could be the best fit for your situation and get the best rate and terms to meet your needs.
Conventional Refi
Also referred to as a rate-and-term refi, conventional refis generally have higher rates than government-backed loans (FHA, VA, USDA). This type of refinance empowers you to adjust your interest rate or loan term, potentially reducing your monthly payment or the time it takes to pay off your loan.
Conventional refis are a great fit for homeowners with solid equity and a strong credit history. By securing a lower mortgage refinance rate, you can save money over the life of your loan and reach your financial goals more swiftly. That can be a win-win.
15-Year Mortgage Refi
A 15-year mortgage refinance typically shortens the length of your loan repayment. This can lead to significant savings in the long run, even though your monthly payments will be higher. For example, with a 30-year $1 million loan at a 7.50% mortgage refinance rate, you’d be looking at a monthly payment of around $6,992 and a total interest of $1,517,167.
If you refinance to a 15-year mortgage at a 7.00% rate, your monthly payment would increase to approximately $8,988. However, your total interest would drop to about $617,891, which means you’d save nearly $900,000 in the end. Quite the difference, right? Obviously, your cash flow situation will play a critical role in whether this is the right choice for you.
Adjustable-Rate Mortgage Refi
Adjustable-rate mortgages (ARMs) start with a lower mortgage refinance rate than fixed-rate loans, but their rate can change over time. If you’re planning to sell before the rate adjusts, refinancing from a fixed-rate mortgage to an ARM can help lower your monthly payment initially. This, in turn, may save you money in the short term.
An adjustable-rate mortgage refi can be a good strategy if you have plans to move or if you expect to increase your income in the next few years.
Cash-Out Refi
A cash-out refinance is a powerful tool that lets homeowners unlock the value of their property by taking out a new mortgage for more than they owe. It’s a bit like turning your home equity into cash you can use for whatever you need — home improvements perhaps or paying off high-interest debt.
The amount you can borrow is based on the equity you have in your home. For example, if your home is worth $500,000 and your mortgage balance is $300,000, you have $200,000 in equity. With cash-out refis, a lender may approve you to borrow up to 80% of your equity, which would leave you with a chunk of available cash after paying off your existing mortgage. This lump sum could help you pay off debt or finance, say, a major expense.
FHA Refi
FHA refinances, backed by the Federal Housing Administration, often come with more favorable mortgage refinance rates, sometimes a full percentage point lower than conventional loans. There are different types of FHA refinance options: FHA Simple Refinance, FHA Streamline Refinance, FHA Cash-Out Refinance, and FHA 203(k) Refinance. The first two are for homeowners with existing FHA loans, while the latter two are available to those without an FHA loan.
The cash-out refinance can be used to pay off high-interest debt or for home improvements. The 203(k) refinance is specifically for home improvements. These FHA refinance options can help you change your current mortgage terms to get a more affordable interest rate, lower your monthly payment, or access your home’s equity for other financial needs.
VA Refi
VA refinances, backed by the U.S. Department of Veterans Affairs, consistently offer some of the most competitive mortgage refinance rates available in the market. That said, to be eligible for a VA refinance, also known as an Interest Rate Reduction Refinance Loan (IRRRL), you must currently hold a VA loan. This type of refinance has the potential to significantly reduce your monthly payments and accumulate substantial interest savings over the life of your loan.
Compare Mortgage Refi Interest Rates
Here are a few pointers for finding the best refi interest rates, plus tips on qualifying for the most favorable rate.
• First and foremost, getting the best available mortgage refi interest rate means comparing rates from multiple lenders. Granted, this takes a bit of time and energy, but it can really pay off in terms of saving you money.
• Look beyond the interest rate to the annual percentage rate (APR), which incorporates fees and any discount points. You’ll want to figure out both the total loan cost and your break-even point (that is, how long it takes for your savings to cancel out the cost of the refinance).
• Keep an eye on your credit score and home value — the higher they are, the more favorable rates you’ll be offered.
• If you are working to build your score and qualify for a lower interest rate, aim to keep your debt-to-income ratio under 36% and your credit utilization rate below 30% (some financial pros advise keeping it under 10%).
• Also be scrupulous about making debt payments on time, as that is the single biggest contributing fact
Online Refinance Calculators
Math can be intimidating at times. Online refinance calculators are an invaluable resource for homeowners. They can help you figure out how much your new monthly payment will be, what your mortgage refinancing costs will be, and how much you can save over the life of the loan.
By using a refinance calculator, you can compare different refinance options side-by-side, and see which one will save you the most money. You can also see how much changing your refinance rate, loan term, or loan amount will affect your monthly payment. This can help you make the best decision for your financial situation.
Run the numbers on your home loan.
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Mortgage calculator
Punch in your home loan amount and a new interest rate, and we’ll estimate your payoff date.
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Down payment calculator
Enter a few details about your home loan and we’ll provide your monthly mortgage payment.
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Home affordability calculator
Provide us with a few details and see how much you can afford to spend on a home purchase.
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.
The Takeaway
Refinancing your mortgage can be a smart financial move, but it requires thinking and research about your goals and the costs involved. To help you make the best decision, it’s wise to explore the different types of refinancing, including cash-out, FHA, VA ,and adjustable-rate mortgage options.
SoFi can help you save money when you refinance your mortgage. Plus, we make sure the process is as stress-free and transparent as possible. SoFi offers competitive fixed rates on a traditional mortgage refinance or cash-out refinance.
A mortgage refinance could be a game changer for your finances.
FAQ
Can I refinance when rates go down?
Absolutely, you can refinance your mortgage when rates are low. But you’ll want to make sure the money you save on interest will be greater than the costs of refinancing. To help you decide, you should first understand your break-even point. This is the amount of time it will take to recoup the costs of refinancing. You should also consider the current market, your financial situation and any fees or charges associated with the refinance. It’s always a good idea to do your research and talk to a financial advisor to make sure you’re making the best decision for your situation.
When is it a good idea to refinance your home?
It’s financially savvy to refinance your primary residence when you can snag a significantly lower mortgage refinance rate. This can lighten the load of your monthly payments or help you achieve other key financial goals, such as debt consolidation or home improvements. Refinancing can be a gateway to reaching your financial aspirations and boosting your overall financial health, unlocking fresh opportunities that may not have been within reach before.
Can I ask my lender to lower my interest rate?
Absolutely. You can have a conversation with your current mortgage lender and ask them to lower your interest rate. They don’t have to, but having a good credit score and a history of on-time payments can help your case.
Can I get cash out of my house without a refinance?
You can pull equity from your primary residence without refinancing. This can be done through a home equity line of credit (HELOC) or a home equity loan. These options allow you to access the equity in your home without having to refinance your first mortgage. This allows you to tap your home’s equity without having to change the terms of your existing mortgage.
How much will it cost to refinance my mortgage?
Generally, you can expect to pay closing costs equal to 2% to 5% of your loan amount. Keep in mind that this is just an average. The actual amount can vary depending on your refinance mortgage rates and the terms of your loan. That’s why it’s so important to carefully consider all the costs associated with your loan so you can make the best financial decision for your situation.
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*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.
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.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article. Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .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.
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More refinance resources.
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