Compare Today’s Mortgage and Refinance Rates in Pennsylvania - NerdWallet (2024)

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Compare Today’s Mortgage and Refinance Rates in Pennsylvania - NerdWallet? ›

“If you're holding a mortgage rate around or above 7%, you could see significant savings by refinancing this year,” DerGurahian says. “However, if your rate is 6.5% or lower, it might make sense to wait until 2025, as we're expecting rates to drop to the mid-5% range by mid-year.”

“If you're holding a mortgage rate around or above 7%, you could see significant savings by refinancing this year,” DerGurahian says. “However, if your rate is 6.5% or lower, it might make sense to wait until 2025, as we're expecting rates to drop to the mid-5% range by mid-year.”

It costs lenders more to lock the interest rate on refinance loans than on purchase loans. Usually, differences in lock risk are not important enough to cause a difference in pricing, but that also changed during the refinance boom.

"For a lower balance, rate and term refinance, it may be at least 1% or more to be worth your time and money," Dell says. It's also important to consider how long you plan on living in the home.

Fed watchers now see at least two rate cuts before the end of the year, but some are betting on three, with more to come in the spring. Some economists say the benchmark rate could be as low as 3 to 3.5 percent by the second half of 2025.

The best time to refinance depends on your personal circ*mstances, like how long you plan to stay in your home or how much left you have to go on your mortgage. It can take several years to recoup the cost of refinancing through your monthly savings.

If interest rates have dropped since you first obtained your mortgage, a rate-and-term refinance can provide you with a lower rate. Ideally, that rate should be one-half to three-quarters of a percentage point lower than your current rate.

What is a good rule of thumb for refinancing? ›

One of the best and most common reasons to refinance is to lower your loan's interest rate. Historically, the rule of thumb has been that refinancing is a good idea if you can reduce your interest rate by at least 2%. However, many lenders say 1% savings is enough of an incentive to refinance.

Refinancing allows you to lengthen your loan term if you're having trouble making your payments. The downsides are that you'll be paying off your mortgage longer and you'll pay more in interest over time. However, a longer loan term can make your monthly payments more affordable and free up extra cash.

If you have a lot of high-interest debt, getting a cash out refinance at a higher interest rate than your current mortgage rate might make sense. With a cash out refinance, you replace your current mortgage with a new mortgage for a higher amount and get the difference in cash at closing.

The Mortgage Bankers Association didn't include mortgage rate predictions in its August 2024 Economic Forecast, but its latest forecast in May 2024 showed rates falling from 6.4% in January to 5.9% in December.

In 2024, homebuyers will likely see mortgage rates fall. But home prices will remain elevated. Hopeful buyers should start preparing as early as possible by saving money and improving their credit. Look into affordable mortgage programs and down payment assistance to boost affordability.

In general, mortgage rates are expected to continue trending down in 2025 as the Fed lowers its benchmark rate and inflation cools. But that forecast could change depending on how the economy evolves next year.

Lower mortgage rates in 2024 — NAR is predicting the average will be 6.3% by the fourth quarter, down from 7.8% in 2023's final three months — will entice more owners to give up the super-low rates they got during the pandemic and put their homes on the market, Yun said.