In these times of financial uncertainty, it is crucial to give consumers forward-leaning options to set themselves up for a secure financial future. For those with existing mortgages, having the ability to access the equity of their home without disturbing the relatively low interest rate on consumers’ first lien mortgages is crucial to allow consumers to consolidate high-interest rate debt or to fund renovations for their home.
 
Expanding the ability for consumers to access “secondary mortgage loans” will also ensure they have an option for affordable credit, so they don’t have to turn to higher interest rate alternatives such as credit cards or personal loans.
 
Our legislation would:

• Allow borrowers to buy down their interest rate and in turn, reduce their monthly payment.
• Align Pennsylvania with over 45 other states that do not restrict lenders from charging points and discount points creating consistency

 
Permitting lenders to collect points and discount points benefits both the mortgage lender and the borrower. Borrowers are able to pay discount points or points to reduce the interest on their mortgage and mortgage lenders will have consistency between the large majority of states.
 
Allowing mortgage lenders to charge points and discount points is a positive step to lowering monthly payments and providing additional access to credit for Pennsylvania homeowners.
 
I hope that you will join us by co-sponsoring this legislation.
 

Statutes/Laws affected:
Printer's No. 1224 (Apr 02, 2025): 7-6102, P.L.13, No.6
Printer's No. 1658 (May 07, 2025): 7-6102, P.L.13, No.6
Printer's No. 1224: 7-6102, P.L.13, No.6