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| Year | Beginning Balance | Principal Paid | Interest Paid | Ending Balance |
|---|
- Pennsylvania effective property tax rate: 1.36% – above the national average of 0.99%
- Median home price in Philadelphia: ~$235,000; Pittsburgh: ~$230,000 – among the most affordable major metros in the U.S.
- PHFA offers down payment and closing cost assistance up to $15,000 for eligible first-time buyers
- Pennsylvania is an attorney-required state – budget $800-$1,500 for a real estate attorney at closing
- No Pennsylvania state transfer tax exemption for first-time buyers – both buyer and seller pay 1% each (2% total)
Use our free Pennsylvania mortgage calculator to estimate your monthly payment – including principal, interest, property taxes, homeowner’s insurance, and PMI. Pennsylvania offers some of the most affordable large-city real estate in the country, with Philadelphia and Pittsburgh both under $240,000 median. Enter your loan details below for an instant PITI breakdown.
Pennsylvania Mortgage Rates Today
Pennsylvania mortgage rates track national averages closely. As of 2026, 30-year fixed rates for well-qualified borrowers in Pennsylvania range from approximately 6.5% to 7.25%. The Philadelphia and Pittsburgh metros see competitive rates due to high lender volume. Rural Pennsylvania counties, particularly in the central and northern regions, may see slightly higher rates due to lower loan density.
| Loan Type | Pennsylvania Rate (Approx.) | National Average |
|---|---|---|
| 30-Year Fixed | 6.65% – 7.15% | 6.85% |
| 15-Year Fixed | 5.95% – 6.45% | 6.10% |
| 5/1 ARM | 6.20% – 6.70% | 6.35% |
| FHA 30-Year | 6.40% – 6.90% | 6.60% |
| VA 30-Year | 6.15% – 6.65% | 6.35% |
| USDA 30-Year | 6.25% – 6.75% | 6.45% |
Pennsylvania Property Taxes: County Breakdown
Pennsylvania’s average effective property tax rate is 1.36% – above the national average of 0.99% but well below neighboring New Jersey (2.23%) and New York (1.40%). Pennsylvania assesses property taxes at the county, municipal, and school district level. School district taxes make up the largest portion – typically 60-70% of your total property tax bill. Rates vary significantly by county and school district.
| Pennsylvania County | Median Home Value | Effective Tax Rate | Annual Tax (Median) |
|---|---|---|---|
| Philadelphia County | $235,000 | 0.99% | ~$2,327 |
| Allegheny County (Pittsburgh) | $230,000 | 1.31% | ~$3,013 |
| Montgomery County | $385,000 | 1.44% | ~$5,544 |
| Bucks County | $405,000 | 1.55% | ~$6,278 |
| Chester County | $460,000 | 1.37% | ~$6,302 |
| Delaware County | $310,000 | 1.53% | ~$4,743 |
| Lancaster County | $255,000 | 1.38% | ~$3,519 |
| York County | $230,000 | 1.44% | ~$3,312 |
| Luzerne County | $150,000 | 1.59% | ~$2,385 |
| Erie County | $140,000 | 1.67% | ~$2,338 |
Pennsylvania First-Time Homebuyer Programs
The Pennsylvania Housing Finance Agency (PHFA) administers several programs for first-time buyers and qualifying repeat buyers:
- PHFA Keystone Home Loan – Below-market 30-year fixed rate for income-eligible buyers. Must be a first-time buyer or purchasing in a targeted area. Income limits apply by county and household size.
- PHFA Keystone Government Loan – FHA, VA, and USDA loans at competitive PHFA rates. No first-time buyer requirement. Income and purchase price limits apply.
- PHFA FHMLP (K-FIT) – Down payment and closing cost assistance up to 5% of the purchase price as a forgivable loan. Forgiven over 10 years at 10% per year. Must be combined with a PHFA first mortgage.
- PHFA ACCESS Modification Program – Up to $10,000 in home accessibility modifications for buyers with disabilities or family members with disabilities. Zero-interest, deferred loan repaid on sale or refinance.
- HOMEstead Program – Up to $10,000 in down payment assistance through participating lenders in targeted Pennsylvania municipalities.
PHFA income limits vary significantly by county – typically $80,000-$130,000 for most areas. Purchase price limits range from $350,000 to $450,000 depending on county. All PHFA borrowers must complete a homebuyer education course.
Monthly Payment Examples in Pennsylvania
Here is what typical mortgages look like in Pennsylvania’s major markets at 7% rate with 20% down:
| City / Area | Median Home Price | Loan Amount (80%) | P&I (7%) | Property Tax/mo | Insurance/mo | Total PITI |
|---|---|---|---|---|---|---|
| Philadelphia | $235,000 | $188,000 | $1,251 | $193 | $105 | $1,549 |
| Pittsburgh | $230,000 | $184,000 | $1,224 | $251 | $103 | $1,578 |
| Allentown | $260,000 | $208,000 | $1,384 | $270 | $108 | $1,762 |
| Erie | $140,000 | $112,000 | $745 | $195 | $92 | $1,032 |
| Reading | $170,000 | $136,000 | $905 | $220 | $97 | $1,222 |
| Lancaster | $255,000 | $204,000 | $1,357 | $293 | $108 | $1,758 |
| Harrisburg (metro) | $245,000 | $196,000 | $1,304 | $277 | $106 | $1,687 |
How Much House Can You Afford in Pennsylvania?
Pennsylvania’s affordable home prices make homeownership very accessible compared to coastal states. Using the standard 28% front-end debt-to-income ratio guideline:
| Gross Annual Income | Max Monthly PITI (28%) | Est. Max Purchase Price (PA) |
|---|---|---|
| $50,000 | $1,167 | ~$155,000 |
| $65,000 | $1,517 | ~$205,000 |
| $80,000 | $1,867 | ~$255,000 |
| $100,000 | $2,333 | ~$320,000 |
| $125,000 | $2,917 | ~$405,000 |
| $150,000 | $3,500 | ~$490,000 |
Estimates assume 7% rate, 20% down, 1.36% effective property tax rate (Pennsylvania statewide average), $1,200/year homeowner’s insurance.
Pennsylvania Closing Costs
Pennsylvania closing costs typically run 2.5%-4% of the purchase price – slightly above the national average due to the state’s real estate transfer tax and attorney requirements. On a $235,000 home, expect $5,875-$9,400 in total closing costs.
- Pennsylvania Transfer Tax: 1% of the purchase price paid by buyer + 1% paid by seller (2% total). Philadelphia adds an additional local transfer tax of 3.278%, making the total city transfer tax 4.278% – one of the highest in the country.
- Title insurance: $800-$2,200 depending on purchase price. Both lender’s and owner’s policies typically purchased in PA.
- Real estate attorney fees: Pennsylvania generally requires an attorney at closing – budget $800-$1,500.
- Appraisal: $450-$700
- Lender origination fee: 0.5%-1% of loan amount
- Recording fees: $50-$200 per document, varies by county
- Homeowner’s insurance prepaid: First year premium paid at closing, typically $900-$1,400
Philadelphia vs. Pittsburgh: Which is Better to Buy In?
Pennsylvania’s two major metros offer very different homebuying experiences:
- Philadelphia is a larger market (population ~1.6M city, 6M metro) with higher job density in healthcare, education, and finance. Home prices average ~$235,000 in the city but can exceed $500,000-$700,000 in the Main Line suburbs. The city’s 3.278% local transfer tax is a significant extra closing cost not found in Pittsburgh. Strong walkable neighborhoods and excellent transit access are major selling points.
- Pittsburgh (population ~300K city, 2.5M metro) has been consistently ranked as one of America’s most livable and affordable cities. Median home prices around $230,000. Tech sector growth (Google, Uber, CMU robotics) has boosted demand but prices remain very accessible. No extra city transfer tax beyond the state 1%. More driving-dependent than Philadelphia.
For pure affordability, Pittsburgh typically offers slightly better value on a square-footage basis. For career opportunities and lifestyle variety, Philadelphia’s larger metro has more depth.
Pennsylvania Homestead Exemption
Pennsylvania’s Homestead Exemption reduces the assessed value of a primary residence for school district property tax purposes by a flat dollar amount (set by each school district). In Philadelphia, the homestead exemption reduces assessed value by $100,000 – saving the average homeowner approximately $1,119/year in city taxes. Other counties offer smaller reductions. All Pennsylvania homeowners must apply through their county assessment office to receive the exemption. There is no age or income requirement for the base homestead exemption.
Pennsylvania Mortgage FAQs
What is the conforming loan limit in Pennsylvania?
In 2026, the conforming loan limit for all Pennsylvania counties is $806,500 for a single-family home – the standard national FHFA limit. Pennsylvania does not have any high-cost counties with elevated conforming limits, even in the Philadelphia and Pittsburgh metros. Loans above $806,500 are jumbo loans requiring full documentation and typically 20%+ down payment.
Is Pennsylvania a good state to buy a home in 2026?
Pennsylvania offers exceptional affordability relative to other Northeast and Mid-Atlantic states. Philadelphia at ~$235,000 median is far cheaper than Boston (~$700,000), New York (~$680,000), or Washington D.C. (~$600,000). Pittsburgh offers similar value. The state’s mature, stable economy (healthcare, education, manufacturing, tech) supports steady demand without the price spikes seen in Sun Belt markets. High property taxes in suburban counties (Bucks, Chester, Montgomery) are the main cost caveat, but they are still well below New Jersey levels.
Does Pennsylvania have USDA loan eligible areas?
Yes – large portions of Pennsylvania outside the Philadelphia and Pittsburgh metro areas qualify for USDA Rural Development loans. Central Pennsylvania, northern Pennsylvania, and most rural counties are USDA-eligible. Some suburban areas on the outer edges of major metros may also qualify. Use the USDA’s official eligibility map to verify your specific property address, as boundaries are updated periodically.
What is the Pennsylvania first-time homebuyer tax credit?
Pennsylvania does not have a state-level first-time homebuyer income tax credit, but PHFA borrowers may qualify for a federal Mortgage Credit Certificate (MCC) which provides a federal income tax credit of up to 50% of annual mortgage interest paid (capped at $2,000/year) for the life of the loan. The MCC must be obtained at loan origination through a PHFA-approved lender. This is separate from the mortgage interest deduction and can be combined with it.