PA Refinance. Pennsylvania Home Mortgages
With your good credit we offer refinancing in PA at low rates with low fees.
- 10-40 year fixed in 5 year increments
- Refinance of PA Primary Residences, second homes, and 1-4 unit investment properties
- Debt consolidation, cash out, improvements to home
- Renovation loan refinances - finance construction costs
- Streamline Refinances
- Refinance to change deed (marriage, inheritance, divorce, etc)
- We will shop your loan with our many wholesale lenders at no extra cost
- $80,000 minimum loan amount
- Float down option
and more... Please contact us anytime for more information or call 866 577-PENN (7366).
Below is the universal matrix for cash out refinancing. Fannie Mae and Freddie Mac both use this matrix. It is required for all conventional (non-FHA) loans. It shows the additional closing costs, if any. For example .25 would be an extra $250 at closing, one time. A lower or higher appraisal than expected could cause a change in the locked in terms based on the Matrix below.
Refinance Savings Calculator
PA Title Insurance Rates
Fee for cash-out refinance based on Credit and LTV: |
| Credit Score |
LTV <=60% |
LTV 60.01-70% |
70.01-75% |
75.01-80% |
| 740+ |
0.0 |
0.25 |
0.25 |
0.5 |
| 720-739 |
0.0 |
0.625 |
0.625 |
0.75 |
| 700-719 |
0.0 |
0.625 |
0.625 |
0.75 |
| 680-699 |
0.0 |
0.75 |
0.75 |
1.375 |
| 660-679 |
0.25 |
0.75 |
0.75 |
1.5 |
| 640-659 |
0.25 |
1.25 |
1.25 |
2.25 |
| 620-639 |
0.25 |
1.25 |
1.25 |
2.75 |
Example #2:
Someone borrowing $200,000 cash-out, $265,000 appraisal, with a 630 middle credit score would incur .0275% x $200,000 = $5,500 fee at closing, one time, that they would not incur if the loan were not for cash-out.
How to save money and avoid these fees:
A borrower can avoid these fees by not taking "cash-out". If they refinance to pay off their existing mortgage (including a purchase money 2nd mortgage) then that would be considered a "rate and term" refinance, not a "cash-out" refinance.
A borrower can also lower their loan amount to reach the next lowest tier. In Example #2, at 75.5 LTV, by reducing the loan amount to $198,750 (75% LTV), the borrower would save 1.5% fee, or $2,981.
How finance the fee:
This cash-out fee could be paid for by an increase to the interest rate if the borrower prefers. Each .125% increase in rate usually equals .5 points.
Why these fees are charged:
Fannie Mae and Freddie Mac implemented these cash-out refinancing fees in 2004 when the foreclosure crisis began. Their risk models have shown the above chart reflects the risk of default based on the above parameters.
Shopping among lenders will not change these fees:
Every lender must use the above matrix for every conventional mortgage.
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