Buying by state: This is the average mortgage payment in Pennsylvania

Thinking about buying a home in the Keystone State? The average monthly mortgage payment in Pennsylvania is $1,569. That’s over $551 less than the national average, which increased more than 4% year-over-year to $2,120 in the first quarter of 2025, according to National Mortgage News. 

Since the average mortgage payment varies by state, county, and city, it’s important to understand the factors that determine borrowing costs for a specific area.

Factors that influence mortgage payments

Many factors influence your mortgage payment. Here are some of the most important.

Home price and down payment

Generally, the lower the home price, the lower your mortgage payment, since you don’t need to borrow as much. That’s why it’s smart to determine what you can afford up front, so you don’t waste time looking at homes outside your budget. Use the Affordability Calculator from Rocket Mortgage® to quickly estimate what home price you can afford.

Your down payment also affects your monthly payment. The more you put down, the less you must borrow, and that means a lower mortgage payment. For first-time home buyers, the average down payment is about 8%. 

However, if you put down 20% or more on a conventional loan, you can also get rid of private mortgage insurance, which can cost 0.2% – 2% of your original loan amount per year. PMI reimburses your lender if you default, and is required if you put down less than 20%. 

Taxes and insurance

Property taxes and homeowners insurance also can affect your monthly mortgage payment. This is because many lenders add these costs to your monthly mortgage payment and hold them in an escrow account.

Property tax rates vary by state and county, which can affect your mortgage payment. Pennsylvania has an effective property tax rate of 1.49%, the ninth-highest rate nationwide. Research the property tax rate in the state and county where you intend to buy so you know how much it may add to your monthly payment. 

The same goes for homeowners insurance. Some markets have higher home insurance costs due to a higher risk of catastrophic weather events. However, by shopping around and comparing home insurance rates, you can lower this cost and your monthly payment by extension. 

Current mortgage rates

Your mortgage rate is the cost of borrowing. The higher the rate, the more you pay to borrow the money you need to buy your home.

What determines your mortgage rate? According to Fannie Mae, the 30-year mortgage rate closely tracks the 10-year Treasury yield, commonly used to assess broader movement in interest rates over time. The 10-year Treasury yield is, in turn, affected by inflation, interest rate changes by the Federal Reserve, fiscal policies, and investor expectations for economic growth.

Regional influences on Pennsylvania mortgage payments

Location has a direct impact on home prices and an indirect impact on mortgage payments. Here’s how urban and rural disparities and local market trends influence payments: 

Urban vs. rural area disparities

Even within the same county, you may find differences between urban and rural areas.

For example, some urban areas may be blighted, leading to lower property values and mortgage payments. Conversely, urban revitalization and gentrification can make property values and mortgage payments soar. Cities often attract home buyers with jobs, amenities, and an urban lifestyle, which can raise property values and mortgage payments.

Rural areas are in less demand, and you may be able to buy properties there that have a lower mortgage payment, especially if you take advantage of a USDA loan. While Rocket Mortgage® doesn’t offer USDA loans, we can help you learn more about them and their closing costs. 

Local market trends

Of course, local market trends in Pennsylvania also affect the cost of borrowing. For example, Philadelphia may have more buyers vying for the same desirable properties, while Pittsburgh offers urban appeal at a more affordable price. Some of the state’s more affordable suburbs include West Brownsville, North Braddock, Hiller, North Charleroi, and Dravosburg.

Economic and financial influences

Economic and financial factors also affect the size of your monthly mortgage payment. Consider the impact of your credit score, debt-to-income ratio (DTI), and mortgage options: 

The importance of a good credit score

Most lenders require you to have a credit score of 620 or higher. If you don’t meet the minimum credit score requirement, you may not qualify for a mortgage. However, you can request a free credit report to assess your credit health and work on improving it. 

The higher your credit score, the more likely you are to qualify and receive favorable loan terms and interest rates, which will lower your mortgage payment. Research lending requirements in your area and compare loan terms across lenders to get the best deal. 

Debt-to-income ratio impacts mortgage costs

Your debt-to-income ratio is the percentage of your gross income that you use to pay off debt. It’s calculated by dividing your total monthly debt obligations by your monthly pretax income. For example, if you have $2,000 in monthly debt payments and earn $5,000 per month, your DTI would be 40% ($2,000 / $5,000). 

Most lenders prefer you to have a DTI below 36%, but some may allow up to 50%. However, borrowers with a lower DTI may be approved for a mortgage with a better interest rate and terms, leading to a lower monthly mortgage payment.

Available mortgage options with lower payments

You can also explore more affordable mortgage options through the Federal Housing Administration, U.S. Department of Agriculture, and Department of Veterans Affairs loans. These loan programs have less stringent credit and down payment requirements, making buying a home in Pennsylvania more accessible. However, a lower down payment or credit score can lead to a higher interest rate and higher mortgage payments.

Home buyer programs in Pennsylvania

In addition to the nationwide mortgage programs, there are many state-specific home buyer programs only available in Pennsylvania that affect mortgage payments. Consider the following: 

Pennsylvania home purchase programs

• Housing Finance Agency (HFA) Preferred (Lo MI): Borrowers must meet income limit and other requirements and may be approved for grants to put toward closing costs.
• Keystone Home Loan Program: Borrowers must meet income and purchase price limits and pay mortgage insurance if putting down less than 20%. 
• Keystone Government Loan Program: Get home financing guaranteed by the FHA, USDA, or VA. Borrowers must meet the requirements of the respective federal agency. 
• Keystone Flex with K-FIT: Borrowers must meet income and purchase price limits and have a credit score of at least 660. 
• Keystone Flex-Purchase & Improvement with K-FIT: By meeting income limits, purchase price limits, and other requirements, borrowers can buy a property and make improvements or repairs of up to $30,000.

Pennsylvania home purchase assistance programs

• Pennsylvania Housing Finance Agency (PHFA) Grant: Borrowers can receive grants of $500 to help with down payment and closing costs. The grant must be used in conjunction with the HFA Preferred™ (Lo MI) program.
• Keystone Advantage Assistance Loan Program: Borrowers can receive a second mortgage of up to the lesser of 4% of the purchase price or market value, or $6,000, to help with buying a home. The program can be used in conjunction with the HFA Preferred™ (Lo MI), Keystone Government, or Keystone Home loan.
• Keystone Forgivable in Ten Years Loan Program (K-FIT): Borrowers can receive a second mortgage of up to 5% of the lesser of the home purchase price or appraised value. The loan is forgiven on an annual basis over 10 years at a rate of 10% per year. The program can be used in conjunction with the Keystone Home loan.
• Programs for Persons with Disabilities: Borrowers may qualify for up to $15,000 in down payment and closing costs assistance. You must meet income limits and not be using any other PHFA downpayment and/or closing cost assistance programs. 
• HOMEstead Downpayment and Closing Cost Assistance: If you meet the relevant income and purchase price limits, you may qualify for up to $10,000 in down payment and closing cost assistance in the form of a no-interest, second mortgage that is forgiven at 20% per year over five years.
• Employer Assisted Housing: Borrowers who work for a participating employer may qualify to receive up to $8,000 for down payment and closing cost assistance in the form of an interest-free loan amortized over 10 years.

The bottom line: Mortgage payment costs in PA depend on many factors

While the average mortgage payment in Pennsylvania is lower than the national average, what you’ll pay each month ultimately depends on a wide range of factors. Your home price, down payment, loan type, and credit profile all play a role. Also, don’t overlook the impact of property taxes, especially since Pennsylvania has one of the highest effective property tax rates. 

To better understand your final mortgage payment, prequalify for a loan with Rocket Mortgage. It’s free and can help you make a more informed home buying decision.