Pennsylvania housing market
If you're looking for a house in Pennsylvania, the story is much like the rest of the country: Prices are up, listings are down, and everybody is fighting for the few houses available.
But when it comes to Pennsylvania, at least you have a few things going for you. Despite prices going up all over, the median sales price in Pennsylvania in August 2023 was $294,200, significantly below the national median home sales price in the second quarter of 2023 of $416,100.
With just two months of inventory, about 36,820 homes, available in August 2023, sellers are pretty much getting exactly what they're asking for pricewise, with the average sales price coming in at 99% of list price. Almost 41% of homes sold above list price in August 2023, with 28% having to drop their prices to secure a sale, but it's still an incredibly competitive market as the number of listings continues to drop.
How do I calculate my mortgage payment?
There are several things that go into a mortgage payment calculation, including:
You can use our Pennsylvania mortgage calculator to see what your monthly payment will be.
To start, monthly mortgage payment will depend on the purchase price of your home and the mortgage rate you lock in. Let's say you're looking to take out a 30-year fixed $250,000 mortgage with an interest rate of 7.5%. Your monthly principal and interest payment would be about $1,398.
It's a bit complex, but you can calculate your principal and interest by hand using this formula:
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If you don't make a 20% down payment on your home, you'll need to pay for private mortgage insurance, or PMI. Our mortgage calculator for Pennsylvania includes an option to calculate PMI: just click "Additional Inputs," under "Mortgage Type."
You'll also need to add property taxes and homeowners insurance to your monthly homeownership costs. If your mortgage allows, you can pay property taxes to your city or municipality directly (usually once every quarter), but many do not. If this is the case, you'll pay your mortgage lender extra each month, and they'll pay those taxes for you. The same is true for your homeowners insurance.
In addition, if you buy a home that's part of a homeowners association (HOA), you'll need to factor those fees into your mortgage payments as well.
That's why it's helpful to use our mortgage calculator for Pennsylvania; it will give you the total picture of what you're required to pay, so there are no surprises. It will also break down your costs so you can see exactly what you're paying for. You can enter these extra monthly costs into our Pennsylvania mortgage calculator by using the "Additional Inputs" option.
If you're serious about getting a great deal on your Pennsylvania mortgage, reach out to the best mortgage lenders in the country to compare rates before you sign on the dotted line.
Tips for first-time home buyers in Pennsylvania
It's natural for first-time home buyers to be a little nervous about the process, since buying a home is a substantial undertaking. There are a few things that can improve your chances of getting pre-approved for a mortgage with low interest rates and good loan terms.
Here are a few tips for first-time home buyers in Pennsylvania:
- Boost your credit score (helps you get the best mortgage rates)
- Pay off debt (improves your debt-to-income ratio)
- Secure a steady job (or don't leave your current job)
- Save up a down payment (most programs will approve loans with 3% to 3.5% down, but more is always better)
Pennsylvania has some first-time home buyer programs that could help you purchase your new home. The Pennsylvania Housing Finance Agency (PHFA) offers assistance programs, including:
- Keystone Advantage Assistance Loan Program: Provides down payment and closing cost assistance to qualified buyers in the form of a 10 year term loan with zero interest for up to 4% of the purchase price of the home (not to exceed $6,000). Can be used with conventional, FHA, VA or USDA-RD loans.
- Keystone Forgivable in Ten Years Loan Program (K-FIT): Eligible borrowers can receive up to 5% of the purchase price of their home in down payment and closing cost assistance as a second mortgage, which is forgiven over 10 years at a rate of 10% per year. It can be used with conventional, FHA, VA, or USDA-RD loans.
Are you ready to get a mortgage in Pennsylvania?
If you're financially prepared to take on the responsibility of a mortgage in Pennsylvania, check out our guide to home loans to make sure you're fully informed. After that, your best bet is to shop around with different mortgage lenders to see what offers you qualify for. Once you get those numbers, you can plug them into our Pennsylvania mortgage calculator to get a solid sense of what your monthly housing payments are likely to be. And that way, you'll avoid getting in over your head.
Still have questions?
Here are some other questions we've answered:
