Guide to refinancing in Pennsylvania. Current rates, state programs, costs, and lender options for Pennsylvania homeowners.
Pennsylvania homeowners face moderate refinancing costs with some unique state taxes. From Philadelphia to Pittsburgh and across the Keystone State, here's what you need to know.
| Loan Type | Average Rate | |-----------|--------------| | 30-Year Fixed | 6.22% | | 15-Year Fixed | 5.54% | | FHA 30-Year | 6.17% | | VA 30-Year | 5.50% |
Use our refinance calculator.
Rural PA counties qualify for USDA loans outside Philadelphia, Pittsburgh, Harrisburg, and Allentown.
Moderate-to-high costs:
| Cost Item | Typical Amount | |-----------|---------------| | Origination | $0 - $2,500 | | Appraisal | $450 - $700 | | Title | $800 - $1,400 | | Recording | $100 - $200 | | PA mortgage tax | See below | | Total | $4,500 - $8,000 |
Pennsylvania Mortgage Tax: PA charges 2% on new mortgage amount for refinances (one of the highest in the nation).
Example: $400,000 loan = $8,000 tax
However: This can sometimes be avoided or reduced depending on the county and lender structure. Ask your lender about options.
Given PA's 2% mortgage tax, you need rates to drop 1.0%-1.5%+ to justify refinancing in most cases. Factor this cost carefully.
How long? 35-45 days. Can I avoid the 2% tax? Sometimes, depending on county and lender. Ask your lender. Property taxes change? No. Credit score? 580 FHA, 620 conv, 740+ best.
PA's 2% mortgage tax makes refinancing expensive. Only refinance if rates dropped significantly and you plan to stay 5+ years.
Get quote: See rates.
Author: Bill McCoy, 15 years experience.
Licensed mortgage broker with 15+ years of experience helping homeowners save money through refinancing. CA DRE #01212512.