Current Pennsylvania Mortgage and Refinance Rates
Mortgage interest rates currently average 6.11% for 30-year fixed loans and 5.23% for 15-year fixed loans.
Refinance rates in Pennsylvania
30-year FIXED
Current refinance rates are averaging:
6.52%
15-year FIXED
Current refinance rates are averaging:
6.06%
If you’re looking to refinance your mortgage in Pennsylvania, your options include:
- Rate-and-term refinance: This type of refinance allows you to swap out your existing loan for one that has an interest rate or loan term that better suits your needs. Locking in a lower interest rate or choosing a longer loan term can help make your monthly mortgage payment more affordable. Meanwhile, selecting a shorter loan term will likely increase your payment, but it can help you pay off your mortgage faster and save thousands in interest charges. Interest rates for rate-and-term refinances tend to be lower than purchase mortgage rates.
- Cash-out refinance: A cash-out refinance allows you to borrow more money than you owe on your home by leveraging a portion of your home equity. You can then use the funds to cover large expenses, such as home improvements or education costs. Cash-out refinance rates also tend to be higher than purchase rates.
- Conventional refinance: The term “conventional refinance” refers to any refinance loan that isn’t backed by a government program. Typically, conventional refinances come with higher rates than their federally insured counterparts.
- FHA refinance: Insured by the Federal Housing Administration (FHA), these refinance loans tend to have more lenient eligibility criteria than their conventional counterparts. FHA rates also tend to run lower: These days, it’s not surprising to see nearly a full percentage point difference between the two. However, in exchange for the lower rate, you’ll likely have extra hoops to jump through during the underwriting process — like meeting more stringent FHA appraisal guidelines — than you might with a conventional refinance.
- VA refinance: Qualified military borrowers in PA can access low VA loan rates with a VA refinance. These refinance loans are guaranteed by the U.S. Department of Veterans Affairs (VA) and are one of the benefits that veterans, active-duty service members and surviving spouses can access in exchange for their service.
See whether refinancing makes sense for you using our mortgage refinance calculator.
What is the current mortgage rates forecast?
The current mortgage rate forecast states rates will remain around 6.0% in early 2026. Despite rate cuts from the Federal Reserve in late 2025, mortgage interest rates are not expected to fall much more in January, meaning home prices will likely remain high as we enter homebuying season. Current signs also do not point towards better affordability in the near future, unfortunately.
How do I get the best mortgage rate for my Pennsylvania home loan?
There are many different factors that go into determining mortgage rates. As a borrower, not all of them are within your control — still, there are a few things you can do to ensure you receive the best possible rate, which include:
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Boosting your credit score
Your credit score is often the single biggest determining factor in the interest rate you’re given for any loan — and mortgages are no different. As a rule of thumb, the higher your score, the lower your interest rate, so taking steps to improve your score before applying for a home loan can help you save. -
Lowering your debt-to-income (DTI) ratio
Your DTI ratio is a measure of your total income versus your total recurring monthly debt payments. It shows lenders how comfortably you’ll be able to take on a mortgage payment. You can lower this ratio by either increasing your income or paying down your debts. -
Choosing a freestanding, single-family home
In general, you’ll see lower mortgage rates if you can avoid buying a manufactured home, multifamily home, vacation home or investment property. -
Considering purchasing mortgage points
Mortgage points allow you to secure a lower interest rate by paying some of the interest charges upfront. This method typically reduces your rate by about 0.25 percentage points and can reduce the total amount you pay in interest over the long run. -
Shopping around for a home loan
Since interest rates are determined on an individual basis, gathering loan estimates from multiple lenders can help you get the best rate. Shopping around can potentially save you thousands on your home purchase, according to LendingTree data.
Read more about our picks for the best mortgage lenders.
Once you’ve received a loan offer from a lender, it’s a good idea to ask about a mortgage rate lock. As the name suggests, a rate lock will ensure that your interest rate won’t increase before you make it to the closing table.
Pennsylvania home loan programs
Coming up with enough money to cover the upfront costs of buying a home can be difficult for many buyers. Luckily for PA first-time homebuyers and repeat buyers alike, the state offers many home loan programs that can assist with that financial burden. Here are three of the most notable options.
HFA Preferred™ (Lo MI) loan
The Pennsylvania Housing Finance Agency (PHFA) offers conventional loans to low- or moderate-income homebuyers in the state. Open to both first-time and repeat homebuyers, the HFA Preferred™ (Lo MI) loan program offers 30-year fixed-rate loans with affordable mortgage insurance rates for those who plan on putting down less than 20%.
Who qualifies
You may be eligible if:
- Your gross household income meets the program’s income requirements
- Your down payment consists of at least $1,000 of your own funds
- You complete a homebuyer education program ahead of closing
Keystone Flex with K-FIT loan
The Keystone Flex with Keystone Forgivable In Ten Years Loan Program (K-FIT) combines first mortgage financing with a forgivable second mortgage that can be used for down payment assistance. Available to low- and moderate-income homebuyers, the second mortgage will be worth either 5% of the home’s purchase price or appraised value, whichever is less. After closing, this loan is then forgiven at a rate of 10% per year.
Who qualifies
You may be eligible if:
- You meet both specific income and purchase price limits
- You have a minimum 660 FICO Score
- You complete the required homebuyer education program
Keystone Home Loan Program
Aimed at offering low-down-payment loans to low- to moderate-income homebuyers, the Keystone Home Loan Program offers 30-year fixed-rate loan options from both government-backed and conventional sources. The program is primarily aimed at first-time homebuyers, though repeat buyers may qualify as long as they plan to buy a home located within one of the program’s designated target areas.
Who qualifies
You may be eligible if:
- You meet certain income and purchase price limits
- You have a sufficient credit history and can show an ability to make monthly loan payments
- You have access to sufficient funds to make the required down payment
Learn about different types of PA mortgage loans
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Pennsylvania conventional loans
If you have a decent credit score and sufficient funds for a down payment, you’ll likely be a candidate for a conventional loan. These loans are traditionally considered the gold standard of mortgages, as they adhere to the minimum requirements set by Fannie Mae and Freddie Mac. -
Pennsylvania FHA loans
Meanwhile, FHA qualifying requirements are typically more lenient than the requirements for conventional loans. Borrowers with at least a 580 credit score only need a 3.5% down payment to qualify for one of these loans. However, the program accepts borrowers with scores as low as 500, as long as you can make a 10% down payment. -
Pennsylvania VA loans
Qualified military borrowers in PA may want to take advantage of a VA loan. These loans typically don’t come with a hard-and-fast down payment or mortgage insurance requirement. However, individual lenders may sometimes impose their own qualifying standards. -
Pennsylvania streamline refinances
If you’re looking to refinance an existing VA or FHA loan, you may be eligible to take advantage of a simplified refinance process. The FHA streamline refinance and VA interest rate reduction refinance loan (IRRRL) programs both offer eligible borrowers the chance to refinance their existing home loans with fewer requirements to meet and less paperwork to complete (you’ll just need to refinance into a new VA or FHA loan, depending on the type you began with).