Mortgage rates are constantly changing, but understanding mortgages and their rates can pay off.
Home buyers who learn about mortgages often get lower rates than those who don’t. Educated buyers frequently pay fewer closing fees too. Today, we’ll clear the confusion around mortgage rates and provide Pennsylvania’s current rates so that you can make an informed financial decision.
Do Some States Have Cheaper Mortgage Rates?
Yes, the location of your loan will effect your final rates. Mortgage rates and costs vary between states. Even multi-state lenders quote different rates and closing costs depending on where they lend. Below, you’ll learn about the five main factors that will determine the mortgage rate for your loan.
What is the National Average Rate for Mortgages Today?
According to the finance website ValuePenguin, the national average rate for a 30-year fixed-rate mortgage is 3.99%. This number ranges state to state, from as low as 3.13% in Iowa to as high as 7.84% in West Virginia.
What Determines Mortgage Rates?
Several factors affect the interest rate on a loan, including:
- A homebuyer’s creditworthiness
- The location where you plan to buy
- The economy
- Real estate market trends
- Competition among lenders
Pennsylvania’s Current Mortgage and Refinance Rates
As of Friday, February 11, 2022, current rates in Pennsylvania are 3.97% for a 30-year fixed mortgage. 15-year fixed mortgages have a slightly lower rate, at 3.38%. For a 5/1 adjustable-rate mortgage (ARM), rates are 2.58%.
How to Get the Best Mortgage Rate
Buying a home is a big decision. After determining how much house you can afford, its time to search for a good lender and a great mortgage rate.
Finding the best mortgage rate takes three steps:
- Decide what type of loan you want
Mortgages can either have a fixed interest rate (one consistent interest rate you’ll pay over the life of the loan) or an adjustable-rate (an interest rate that can change, usually 3-10 years into the loan). ARMs usually offer lower introductory rates than fixed rates, but they can rise substantially after the introductory period ends.
- Determine whether you’ll pay points
Borrowers have the option to pay discount points—fees that reduce the interest rate on a mortgage. For example, some loans allow borrowers to pay a $2,000 fee to reduce their interest rate by 0.25%. If you have extra cash after your down payment and closing costs, consider lowering your rates with discount points.
- Shop around and compare multiple lenders
Apply for a mortgage with multiple lenders and compare the different rates offered. Different types of lenders, including banks, credit unions, and online lenders, are required to provide you with a Loan Estimate form with details of each loan’s terms and fees for easy comparison.
Depending on your credit scoring model, you’ll have 14 to 45 days to apply for as many mortgages as you want. Within this window, your credit will be affected the same as it would if you only applied for one loan.
Realtor Imer Lopez — Real Estate Expert and Financial Specialist
Having a knowledgeable, helping hand while buying or selling a home can make all the difference between a stressful season and an easy transition. We’re proud to include Imer Lopez on our team. Imer offers 10 years of Finance and Banking Experience. He provides our clients with peace of mind as they navigate big financial decisions while buying or selling their home.
Meet Caleb, Our Transaction Coordinator
Real estate transactions and all the paperwork and finances involved can be overwhelming. That’s why we included a methodical, detail-oriented, and client-focused team member here at the Niv Lemoine Real Estate Group. Caleb makes sure that all our clients understand every step of the Real Estate Transaction process from contract to closing.
Ensure Your Biggest Investment Is In Capable Hands
Our team can help you navigate today’s real estate market and mortgage rates. If you’re looking to buy or sell in Lancaster County, don’t hesitate to reach out to your friends here at the Niv Lemoine Real Estate Group. We match people like you with their perfect home in their price range, and we would love to help.