Should I Refinance? Calculate Your Savings
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Full Loan Comparison
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Disclaimer: Results are estimates for educational purposes only and do not constitute financial advice. Actual savings depend on your credit score, lender fees, prepaid interest, and local costs. Consult a licensed mortgage professional before refinancing.
Pennsylvania Refinance Breakdown
Refinancing a mortgage in Pennsylvania involves some notable closing cost considerations, particularly around the state's transfer tax, but the state's varied housing markets from Philadelphia and Pittsburgh to the suburban counties offer real opportunities for homeowners to improve their financial position. Average Pennsylvania mortgage balances reached approximately $198,000 in 2024. Home values across the Philadelphia Main Line suburbs, Pittsburgh's North Shore, and Central Pennsylvania have appreciated steadily, providing many homeowners with a solid equity base to leverage.
Refinance Closing Costs in Pennsylvania
Pennsylvania refinance closing costs are among the higher in the Mid-Atlantic, typically ranging from 2% to 5% of the loan amount, with a state average near $5,200. A key driver is Pennsylvania's real estate transfer tax of 1% at the state level, with most municipalities adding another 1%, for a typical combined rate of 2%. Critically, this transfer tax generally does not apply to straightforward refinances since no ownership transfer occurs, which significantly reduces the cost compared to purchase closings. Pennsylvania does not require an attorney for refinance closings, and title companies handle most transactions.
Cash-Out Refinance Rules in Pennsylvania
Pennsylvania homeowners follow standard conventional lending guidelines for cash-out refinances, with most lenders capping LTV at 80% of the appraised home value. There are no Pennsylvania-specific constitutional restrictions on cash-out amounts. Pennsylvania is not a community property state, so only the borrower or borrowers on the loan need to sign the mortgage documents. FHA cash-out refinances allow 85% LTV, and VA loans can go higher for eligible veterans at installations like Carlisle Barracks and the various PA National Guard facilities.
Local Refinance Assistance Programs
The Pennsylvania Housing Finance Agency (PHFA) administers the Keystone Home Loan program and Keystone Government Loan, offering below-market interest rates for purchases and refinances in some cases, paired with the Keystone Advantage Assistance Loan. PHFA also offers the HOMEstead Down Payment and Closing Cost Assistance program for income-qualified borrowers. The City of Philadelphia and Allegheny County maintain additional homeowner assistance resources worth exploring for residents of those metro areas.