Pennsylvania Mortgage Calculator | Ascension
Housing Market in Pennsylvania
Pennsylvania is a sellers’ market right now – house prices are going up. There are a limited number of homes listed on the market and a large number of buyers interested in owning them.
According to Zillow, house prices in Pennsylvania have risen 4% in the past year. The median value of homes in Pennsylvania is now $ 198,377. Meanwhile, the median price of homes currently listed in Pennsylvania is $ 210,000. You can use our Pennsylvania mortgage calculator to estimate the monthly cost of a mortgage in this range. If you’re not sure what mortgage rate to expect, check out our guide to current mortgage rates in Pennsylvania.
Foreclosures are higher in Pennsylvania than nationally. The percentage of delinquent mortgages in Pennsylvania is 1.3%, more than the national rate of 1.1%. Additionally, 9.3% of Pennsylvania homeowners are underwater on their mortgages (their homes are not worth enough to pay off their outstanding home loan balances).
How do I calculate my mortgage payment?
There are several things that go into calculating a mortgage payment, including:
You can use our Pennsylvania mortgage calculator to see what your monthly payment will be.
For starters, the monthly mortgage payment will depend on the purchase price of your home and the mortgage rate you set. Let’s say you’re looking to take out a 30-year, $ 150,000 fixed mortgage with an interest rate of 3.2%. Your monthly loan payment would be $ 649.03. This combines your principal and interest payment.
It’s a bit complex, but you can calculate your principal and interest by hand using this formula:
If you don’t put down a 20% down payment on your home, you’ll have to pay for private mortgage insurance, or PMI. Our mortgage calculator for Pennsylvania includes an option to calculate PMI: simply click on “Additional Entries” under “Mortgage Type”.
You will also need to add property taxes and home insurance to your monthly homeownership fees. You can pay property taxes directly to your city or town (usually quarterly). Alternatively, you can pay your mortgage lender extra each month, and they will pay these taxes for you. The same goes for your home insurance: you can pay your annual premium to your insurance company yourself, or pay your mortgage lender more money each month to cover this expense for you.
Additionally, if you are purchasing a home that is part of a Homeowners Association (HOA), you will also need to factor these fees into your mortgage payments.
That’s why it’s helpful to use our Pennsylvania mortgage calculator; it will give you an overview of what you owe, so there are no surprises. It will also break down your costs so that you can see exactly what you are paying for. You can enter these additional monthly costs into our Pennsylvania mortgage calculator using the âAdditional Entriesâ option.
What to Know Before Buying a Home in Pennsylvania
Before buying a home in Pennsylvania, you need to make sure that your financial situation is strong enough to do so. Start by saving enough money for a down payment without leaving yourself too little emergency savings.
A good rule of thumb is to try and make a 20% down payment on your home. Some (but not all) lenders will still approve you for a mortgage with a smaller down payment. But if you can deposit at least 20%, you can avoid PMI, which will lower your monthly mortgage costs.
Plus, putting 20% ââless can help save you from going broke on your mortgage. This is when your home loses value over time and you end up owing more on your mortgage than your home is worth. A larger down payment means a smaller home loan. And with a smaller home loan, your home is unlikely to lose as much value as you are under water.
However, you shouldn’t use up your savings to put a down payment on your home. Make sure you have enough cash to cover three to six months of essential expenses. Remember that in addition to your mortgage payment, you will be responsible for maintenance and repairs after you buy your home. It is important to keep money in the bank for this purpose.
Tips for first-time home buyers in Pennsylvania
It’s natural for first-time home buyers to be a little nervous about the process, because buying a home is such a big business. 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 some tips for first-time home buyers in Pennsylvania:
- Improve your credit rating (helps you get the best mortgage rates)
- Pay off debt (improves your debt-to-income ratio)
- Get a stable job (or don’t quit your current job)
- Save a deposit (20% is preferable)
Pennsylvania has home ownership programs that could help you buy your new home. The Pennsylvania Housing Finance Agency (PHFA) offers these three programs:
- HFA Preferred Loans (Lo MI): Open to buyers who purchase a primary home with a single unit, this program helps those with smaller down payments secure a low-cost PMI and thus limit the burden of that additional expense. Your income will need to be within a certain limit to qualify, and that limit depends on the county in which you are buying. You will also need to participate in an education program for home buyers.
- Keystone Home Loans: Open to first-time home buyers, U.S. veterans, and home buyers in certain targeted counties, this program offers competitive mortgage interest rates for those looking to purchase a single-unit home or a two-unit home. where the buyer will live in one of the units. This program also comes with income limits, and there are also limits on the purchase price of your home, which depend on the country in which you are buying.
- Keystone government loans: This program is in fact not limited to first-time buyers. Its purpose is to help you get an FHA loan, VA loan, or USDA loan.
Are you ready to get a mortgage in Pennsylvania?
If you’re financially prepared to take on the responsibility of a Pennsylvania mortgage, check out our guide to home loans to make sure you’re fully informed. After that, your best bet is to shop around the different mortgage lenders to see which offers you qualify for. Once you get those numbers, you can plug them into our Pennsylvania mortgage calculator to get a clear idea of ââwhat your monthly housing payments are likely to be. And thus, you will avoid taking your head off.