If you’re looking to refinance your mortgage in Pennsylvania, your options include:
Current 30-year fixed mortgage refinance rates are averaging: 7.38%
The current average rate for a 15-year fixed mortgage refinance is: 7.02%
See whether refinancing makes sense for you using our mortgage refinance calculator.
What is the current mortgage rates forecast for 2024?The current mortgage rates forecast isn’t all sunshine and rainbows, but it does predict that the clouds will part a bit in 2024. Our senior economist Jacob Channel expects mortgage rates to hold steady or drop over the course of the year. In fact, he wouldn’t be surprised if 30-year rates ended the year below 6%.
The housing affordability crisis isn’t likely to change significantly in a single year, but lower rates could help boost both supply and demand, giving the market a chance to pick back up.
There are many factors determining mortgage rates, but your job is simple: work on improving the ones that are within your control. Here are a few steps you can take right now to get the best mortgage rate:
Read more about our picks for the best mortgage lenders.
When should I lock in my mortgage rate?Once you’ve found a house you love and get approved for a mortgage, you can request a mortgage rate lock from your lender. Rate locks are tied to a single address and last for a limited time so, while they won’t guarantee your rate forever, they should give you enough time to make it to closing without worry.
Missourians looking for competitive loan rates, down payment assistance or other help with getting into a home have several great options from the Missouri Housing Development Commission (MHDC).
First-time homebuyers and veterans may qualify for a mortgage with a below-market interest rate through the First Place program. Borrowers can choose an FHA, VA or USDA government-back loan, or an HFA Advantage conventional loan from Freddie Mac. You can purchase anywhere in the state, but purchasing in a targeted area can get you an even deeper discount on your interest rate.
Who qualifies?Borrowers must:
Be a first-time homebuyer, or a veteran who has served on active duty and left the military no more than 25 years ago
Earn within the program’s income limits, which range from $85,600 to $143,500 depending on your location and household size
Purchase a house within the program’s price limits, which range from $481,176 to $753,024 depending on the home’s location and number of units
Who qualifies as a first-time homebuyer? People who have never owned a home
People who haven’t owned a primary residence in the last three years
Repeat borrowers or first-time homebuyers who earn too much to qualify for the First Place program above can still access assistance through the Next Step program, which offers first mortgages in conjunction with extra funds for a down payment and closing costs. The assistance funds come in the form of a second mortgage of up to 4% of your first mortgage amount. The funds are 100% forgivable, so you won’t have to worry about paying them back as long as you stay in the home for 10 years.
Who qualifies?Borrowers must:
Have a minimum 640 credit score
Earn within the program’s income limits, which range from $102,720 to $143,500 depending on your location and household size
Purchase a home within the program’s price limits, which range from $588,104 for a single-family home to $753,024 for a two-family home
Have a maximum 50% DTI ratio
Move into the home within 60 days of closing
A mortgage credit certificate (MCC) through MHDC allows you to claim a tax credit of up to $2,000 when you file your taxes. If you pair the MCC with a Next Step loan, you may qualify for a credit of 25%, 35% or 45% of the mortgage interest you paid throughout the year. However, if you use an MCC on its own — without a Next Step loan — you’ll be capped at 25% (with a $2,000 maximum).
Who qualifies?Borrowers must:
Be a first-time homebuyer or qualified veteran
Have a minimum 640 credit score
Have an FHA, VA, USDA or conventional purchase mortgage
Meet the program’s income and purchase price limits
→ Missouri conventional loans. You likely think of conventional loans when considering mortgages in general, and that’s for good reason — they’re a popular and traditional choice for borrowers with decent credit. However, borrowers with a score below 620 may not be able to qualify, since they won’t meet the minimum requirements.
→ Missouri FHA loans. FHA loan requirements offer a more accessible option, since they allow credit scores as low as 500 (albeit with a 10% down payment). If your down payment funds aren’t quite that robust, don’t worry — you can put down as little as 3.5% if you have at least a 580 score.
→ Missouri VA loans. VA loan requirements have the most flexibility, but they also have one unbendable rule: You must be a military borrower to qualify. But if you are, you’re in luck: You can purchase or refinance without making a down payment or paying for mortgage insurance.
→ Missouri streamline refinances come in two different types: FHA streamline refinance loans or VA interest rate reduction refinance loans (IRRRLs). They’re called “streamline” because they come with less paperwork to file and less hassle to deal with compared to traditional refinances. However, you’ll need to refinance from an FHA loan into an FHA loan, or from a VA loan into a VA loan, to use a streamline loan.
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