Pennsylvania Mortgage Calculator

Pennsylvania has some of the most affordable homes in the Northeast, but the money you save on price comes back at closing: the state and local transfer tax together usually total about 2% of the price, one of the highest combined rates in the country. Property taxes are driven mainly by school districts, and many districts reassess rarely, so the assessed value on a listing can be decades old and well below what the home is worth.

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The calculator is pre-filled for a $277,600 home (the Pennsylvania median, ranked 36th of 51) with 20% down at 7.40%. That comes to $1,907.39 a month: $1,537.64 principal and interest, $268.33 tax, $101.42 insurance. With 5% down and PMI it is $2,305.58.

Homestead exemptions and property tax relief

Under Act 1 of 2006, gambling revenue funds a school-tax reduction through the Homestead and Farmstead Exclusion. The amount differs by school district. You apply once with the county assessment office, generally by March 1, and must use the home as your primary residence. Lower-income seniors, widows and people with disabilities can also claim a Property Tax/Rent Rebate from the state.

First-time buyer programs

The Pennsylvania Housing Finance Agency pairs its Keystone first mortgages with Keystone Advantage Assistance, a 0% second loan of up to 4% of the price or $6,000, repaid over 10 years. K-FIT offers 5% of the price, forgiven 10% a year over 10 years, and pairs only with the Keystone Home Loan. K-DATE, launched in May 2026, is a 0% loan with no payments until you sell, refinance or pay off the first mortgage. It covers 5% of the price, or 8% on loans of $150,000 or less while funds last, and paired with Keystone Flex it does not require you to be a first-time buyer. All three require a 660 credit score.

Transfer and recording taxes

The state realty transfer tax is 1% of the price. The county Recorder of Deeds usually collects a local realty transfer tax along with it. Under the Local Tax Enabling Act each municipality and school district may levy up to 1%, but when both tax the same sale each is held to half the rate. That makes 1% local, or 2% all-in, the common total. Philadelphia's total is 4.578% (3.578% city plus 1% state), and a Pittsburgh home in the city school district pays 5% in all (1% state, 3% city, 1% school district). By custom the buyer and seller split the bill, so at a 2% total each side pays about $2,776 on a $277,600 home.

Closing costs to plan for

The transfer tax share is often the buyer's largest single government cost. Add lender fees and title insurance, which is rate-filed with the state, plus prepaid school and county taxes, which are billed on different calendars.

When property tax bills are due

Pennsylvania homeowners usually get at least two separate bills a year: a county and municipal bill, often mailed in the spring, and a school district bill, often mailed in July or August. Each typically offers a 2% discount for paying early and a penalty after the face period, so escrow has to cover several dates.

Before you buy in Pennsylvania

File the homestead/farmstead exclusion application with your county assessment office by March 1. It generally takes effect for the school tax year that starts the following July 1, and it lowers the school bill using state gaming revenue. At closing, the state realty transfer tax is 1% of value, and most municipalities and school districts add their own local transfer tax, which buyer and seller often split.

2026 loan limit in Pennsylvania

FHFA 2026 one-unit conforming limits: 1 of 67 counties run above $832,750, peaking at $1,209,750 in Pike County. A median-home loan of $222,080 is conforming.

Pennsylvania numbers used above

MeasurePennsylvaniaU.S.
Median home value (ACS 2024)$277,600$360,600
Effective property tax rate1.16% (14th highest)0.89%
Average HO-3 premium (NAIC 2023)$1,217$1,737
Median household income$77,545$81,604
Median gross rent$1,252$1,487
Income needed at 28% (20% down)$81,745–

Frequently asked questions

Is the transfer tax split?

By custom, yes. Buyer and seller each pay half of the state and local total, unless the contract says otherwise.

What is the median-home payment in Pennsylvania?

About $1,907.39 a month on a $277,600 home with 20% down at 7.40%, including tax and insurance.

What income do lenders want for that?

Roughly $81,745 a year under the 28% rule, or $98,810 with 5% down and PMI.

How does Pennsylvania insurance compare?

The 2023 average HO-3 premium was $1,217, below the $1,737 U.S. average.

Sources

See also: all states · house affordability · Pennsylvania paycheck