Are you looking to buy a home in Central PA or in Maryland? Unless you're paying with cash, you'll likely need to secure a mortgage loan to finance your purchase. As you're evaluating potential lenders, an important consideration is the interest rates they're offering for each loan product. You might be surprised at how much rates vary from one lender to the next — and how the difference in rates impacts you as a prospective borrower.
What Is a Mortgage Interest Rate?
The interest rate determines the extra cost you must pay each month when financing your home purchase. In essence, you are compensating the lender for allowing you to use their money to buy the property.
Available mortgage rates at any given time will vary based on several economic factors. Generally, interest rates are higher when the stock market is strong, and foreign markets are stable. They also tend to increase when inflation rises and during periods of high job growth and low unemployment.
The status of the secondary mortgage market has an impact on interest rates as well. Federally backed mortgage companies like Freddie Mac and Fannie Mae bundle their loans and sell them to investors. The rates these investors pay for mortgage-backed securities influences the rates lenders offer for their loan products.
What Is the Significance of Mortgage Rates?
You might not think that a slight increase or decrease in interest rates will make much of an impact — until you consider the long-term effect. For example, if you take out a $200,000, 30-year fixed-rate mortgage at 5%, you'll end up paying about $60 per more per month than if the rate was 4.5%. Over 30 years, your extra interest costs would total approximately $21,600, all because of a difference of only .5% in the interest rate.
Use the Orrstown Bank mortgage calculator to explore different interest rate scenarios in PA and MD.
Interpreting Central PA & MD Mortgage Rates: Other Factors to Consider
Keep in mind that an advertised mortgage rate may not be the actual rate you end up receiving from a lender. The price you pay ultimately depends on additional factors such as:
- Down payment size: A larger down payment reduces the lender's risk and helps you get a lower rate.
- Term length: A shorter loan term comes with a lower interest rate.
- Credit history: A high credit score and strong credit history give the lender more confidence that you'll repay the loan, resulting in a lower rate.
Why Choose Orrstown Bank as Your Mortgage Provider in PA and MD?
If you're checking out the current mortgage rates in PA or MD, don't forget about Orrstown Bank. We strive to offer competitive interest rates, and we provide excellent service to maximize your borrowing experience. Our high-touch, transparent lending process removes the burden from your shoulders and alleviates concerns about hidden fees. You'll feel comfortable doing business with us.
Our local decision-making ensures a smooth, seamless loan closing. Although we're a smaller bank, we have the same technical capabilities as the larger financial institutions.
About Our PA & MD Home Mortgage Rates
It’s your market. All you have to do is fill out this quick form and go find a new place to live. We monitor daily rates so you don't have to. Here’s what you need to know. Now, talk to your loan officer and get started on your mortgage loan application.
- Property is one unit
- Closing costs are paid out of pocket
- No seller assistance
- Debt-to-income is below 45%
- You do not have a second mortgage
- Rates are valid for 60-day lock periods
- Loan-to-value ratio is 80% or less (down payment is at least 20%)
Interest rates and APRs are based on current market rates, are for informational purposes only, are subject to change without notice and may be subject to pricing add-ons related to property type, loan amount, loan-to-value ratio, credit score and other variables. The actual fees, costs and monthly payment on your specific loan transaction may vary and may include additional fees and costs. Some restrictions may apply. Call us at 1.888.677.7869 for additional information.
This is not a credit decision or a commitment to lend and credit is subject to approval. Depending on loan guidelines, mortgage insurance may be required. If mortgage insurance is required, the mortgage insurance premium could increase the APR and the monthly mortgage payment.
APR (annual percentage rate) reflects the effective cost of your loan on a yearly basis, taking into account such items as interest, most closing costs, discount points (also referred to as "points") and loan-origination fees. Your monthly payment is not based on APR, but instead on the interest rate stated on your promissory note.
FHA loans require both an up-front and an annual mortgage insurance premium. The premium varies based on the loan characteristics, your credit score, whether you've received loan counseling, and other factors. For illustrative purposes on FHA loans, our detail results do not include a mortgage insurance payment added to the monthly principal and interest payment. Contact a Mortgage Originator for further details.
Other products and terms are available upon request.