Pennsylvania (PA) Refinance Mortgage Rates

Rural landscapes, historic metropolitan centers, and suburban neighborhoods are just some of the options Pennsylvania homeowners can choose from. That is why so many residents buy homes with the intent to put down roots, and for these Pennsylvanians, refinancing a home mortgage to save on interest and monthly payments makes good sense.

The Decision to Refinance

Homeowners whose existing mortgages carry an interest rate that is greater than one percent over the current rates should look into refinancing. Those whose existing home loan is an Adjustable Rate Mortgage (ARM) should take advantage of low 30 year refinance rates to lock in a comfortable monthly payment. Because most Pennsylvania banks and finance companies require a minimum of 10 percent equity to qualify for refinancing, Pennsylvanians who meet this requirement should find out how refinancing can improve their family financial profile.

Types of Refinancing Available in Pennsylvania

One kind of refinance program available in Pennsylvania is a cash-out mortgage refinance. A homeowner can take out a new mortgage that is greater than the balance of the old home loan, and receive the difference in cash. Not only does a cash-out refinance have the potential for lowering the borrower’s monthly mortgage payment, but the extra cash can go towards paying off debts or making home improvements that will increase the home’s value.

For those Pennsylvania families among the many that are struggling to keep their homes in a difficult economic climate, the REAL program — REfinance to an Affordable Loan — is a viable option offering some of the best refinance mortgage rates in Pennsylvania. Some of the criteria for REAL qualification include:

• A credit score above 620
• Less than two months behind in mortgage payments
• Total monthly debts are less than half of the family’s income, before taxes

The government-sanctioned Pennsylvania Housing Finance Agency (PHFA) can provide details on the REAL refinance option as well as the HERO program, in which PHFA actually purchases a resident’s mortgage and then revises the terms into a more affordable format.

Further Considerations

Whether the borrower’s current mortgage is FHA, VA loan, a fixed rate or adjustable rate loan, held by a local bank or one the the many finance companies, a good family financial manager will research the best 30-year refinance mortgage rates rates in Pennsylvania. Some programs, such as those overseen by PHFA, may be available at low or no cost to state residents.

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