Pennsylvania Mortgage Calculator
Estimate your monthly mortgage payment in Pennsylvania using local property tax rates, insurance costs, and current interest rates.
$
$20%
%
Monthly Payment
$2,208
$1,816 principal & interest
Principal & Interest: $1,816
Property Tax: $292
Insurance: $100
Loan Amount
$280,000
Total Interest
$373,787
Total Cost
$653,787
LTV Ratio
80.0%
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Advanced Calculator
Charts, scenario comparison, tax benefits, equity projection
Compare different loan terms using your home price of $350,000 with $70,000 down at 6.8%.
15-Year Fixed
$2,401/mo
Total interest: $152,141
Total cost: $432,141
Save $221,646 vs 30-year
20-Year Fixed
$2,088/mo
Total interest: $221,025
Total cost: $501,025
Save $152,762 vs 30-year
30-Year Fixed (Current)
$1,816/mo
Total interest: $373,787
Total cost: $653,787
Lowest monthly payment
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Professional Simulator
Complete financial model: closing costs breakdown, rent vs buy, inflation-adjusted returns, true cost of ownership
years
%
%
%
%
10-Year Net Gain/Loss
-$173,685
After selling in year 10 at $493,710
Total Paid Over Hold Period
$398,929
Down + closing + all payments
Home Value at Sale
$493,710
3.5%/ yr appreciation
Selling Costs
$29,623
6% of sale price
Net Sale Proceeds
$225,244
After mortgage payoff + selling costs
Real Interest Rate
4.25%
Nominal 6.8% - inflation 2.5%
Real Monthly Payment
$1,254
Today's dollars (mid-loan)
State Property Tax
$5,600
TX rate: 1.6%
True Monthly Cost
$2,499
PITI + HOA + maintenance
Buying a Home in Pennsylvania
Pennsylvania offers some of the most affordable housing in the Northeast. With an average home price of $260,000, the state is significantly more accessible than neighboring New York or New Jersey. Philadelphia and its suburbs are the most expensive markets, while cities like Pittsburgh, Allentown, Scranton, and Erie offer homes well under the state average.
Pennsylvania's property tax system is decentralized — each county, municipality, and school district sets its own rates, making it critical to research the specific tax burden in any area you're considering. School district taxes alone often exceed 1% of assessed value in many parts of the state.
Key Housing Facts for Pennsylvania
- Average home price: $260,000
- Average effective property tax rate: 1.53%
- Average homeowners insurance: $1,100/year
- Realty transfer tax: 2% (typically split buyer/seller)
- Attorney typically used at closing but not legally required statewide
- Most active markets: Philadelphia suburbs, Pittsburgh
- Most affordable markets: Erie, Scranton, Allentown, Reading
Pennsylvania First-Time Homebuyer Programs
- PHFA Keystone Home Loan: Competitive fixed-rate mortgages for first-time buyers or those purchasing in a target area or with a disability.
- PHFA HFA Preferred: Conventional loan with reduced mortgage insurance premiums, available to first-time and repeat buyers.
- PHFA Grant: $500 grant toward down payment or closing costs for qualifying borrowers.
- K-FIT Loan: 5% of purchase price as a second loan, forgiven at 10% per year over 10 years, for down payment and closing costs.
- Keystone Advantage Assistance: Up to 4% of purchase price as a zero-interest second loan for down payment and closing costs; repaid when home is sold or refinanced.
Property Tax Rates by Major Pennsylvania County
| County | Effective Tax Rate | Median Home Value | Annual Tax (Median) |
|---|---|---|---|
| Philadelphia | 0.91% | $230,000 | $2,093 |
| Montgomery | 1.49% | $390,000 | $5,811 |
| Chester | 1.39% | $400,000 | $5,560 |
| Bucks | 1.46% | $380,000 | $5,548 |
| Allegheny (Pittsburgh) | 1.81% | $195,000 | $3,530 |
| Lancaster | 1.57% | $260,000 | $4,082 |
| York | 1.70% | $220,000 | $3,740 |
| Erie | 1.72% | $140,000 | $2,408 |
Average Home Prices by Major Pennsylvania City
| City/Area | Median Home Price |
|---|---|
| Chester County suburbs | $480,000 |
| Montgomery County suburbs | $420,000 |
| Philadelphia | $230,000 |
| Pittsburgh | $195,000 |
| Lancaster | $260,000 |
| Allentown | $220,000 |
| Scranton | $160,000 |
| Erie | $140,000 |
Frequently Asked Questions
Pennsylvania property taxes are set by local taxing authorities — county, municipality, and school district — and each applies its own millage rate to the assessed value of your property. The average effective rate statewide is about 1.53%. Rates vary widely: Philadelphia has a relatively low rate (~0.90%), while suburban counties like Pike and Monroe can exceed 2%. School district taxes typically make up the largest share of the total bill.
The Pennsylvania Housing Finance Agency (PHFA) is the state's primary housing authority. It offers the Keystone Home Loan program with competitive fixed rates for first-time and repeat buyers, the HFA Preferred loan with reduced PMI costs, the Keystone Government Loan for FHA/VA/USDA borrowers, and the PHFA Grant providing $500 toward closing costs. The K-FIT program offers 5% down payment assistance as a forgivable loan repaid at 10% per year over 10 years.
Yes. Pennsylvania imposes a 1% state realty transfer tax on the sale price, and most local municipalities add another 1%, for a combined 2% transfer tax. By convention, this is typically split equally between buyer and seller (1% each), though it's negotiable. On a $260,000 home, the combined transfer tax is $5,200, with the buyer's share typically $2,600.
Pennsylvania's Homestead Exclusion program allows local taxing authorities to reduce assessed values on owner-occupied primary residences, lowering the taxable value and thus the tax bill. The specific amount varies by municipality and school district. Homeowners must apply through their county assessment office. Philadelphia and many suburban counties have active homestead programs that can save hundreds of dollars annually.
Pennsylvania closing costs typically run 3–4% of the purchase price, higher than many states due to the 2% transfer tax. On a $260,000 home, total closing costs (including the buyer's share of transfer tax) typically run $7,800–$10,400. Other costs include title insurance, title search, deed recording fees, lender origination fees, and prepaid items like homeowners insurance and property taxes.