Pennsylvania HELOC Rates and Rules 2026: No Transfer Tax

HELOC rates in Pennsylvania right now

Most HELOCs have a variable rate based on the prime rate plus a margin set by the lender. Your margin depends mostly on your credit and how much of your home's value you borrow.

In 2025, the median HELOC in Pennsylvania opened at 7.18%, and half opened between 5.74% and 8.24%, across 42,789 lines reported under federal HMDA data. The national median was 7.50%. Leaving out lines with a 3 to 12 month introductory rate, the Pennsylvania median was 7.65%. Home equity loans in Pennsylvania, which usually have a fixed rate, closed at a median of 7.12%. HELOC rates in every state.

Prime rate, unchanged since September 17, 2026 (Federal Reserve): 7.00%
Median Pennsylvania HELOC rate at opening, 2025 (HMDA): 7.18%
Average 30-year fixed mortgage rate, week of October 29, 2026 (Freddie Mac): 7.24%

The Federal Reserve raised rates on September 16, 2026, which moved prime to 7.00%. Its October 27 and 28 meeting is more recent than the prime rate data shown here, which runs through October 27, 2026. Its next meeting is December 8 and 9. With 30-year mortgage rates above 7%, a HELOC lets you borrow against your equity without refinancing a lower rate you already have.

How much can you borrow in Pennsylvania?

Pennsylvania law doesn't set a home equity borrowing cap. Each lender sets its own limit on all the loans on your home combined, your current mortgage plus the new line.

With 43.3% of Pennsylvania owners holding no mortgage at all, many have most of their home value available to borrow against.

Home value ×80% −what you owe now =a likely maximum line

Example

Home value (the Pennsylvania median for owner-occupied homes): $277,600
80% of value (a common lender limit, not a Pennsylvania law): $222,080
Current mortgage balance: $150,000
Maximum line of credit: $72,080

Example only. Lenders set their own limits and the final amount after an appraisal, and many approve less than the maximum based on credit and income.

Run your own numbers in our home equity calculator

Pennsylvania home prices nearly doubled from 2014 to 2025

On the FHFA House Price Index, Pennsylvania home prices rose 94.6% from 2014 to 2025 and went up every single year, with the biggest jumps in 2021 (+13.7%) and 2022 (+10.4%). Prices kept climbing after that: up 5.1% in 2025 and 3.93% in the year to mid-2026, 13th of the 50 states and DC.

Source: FHFA House Price Index, Pennsylvania, purchase-only, through 2026 Q2.

Chart data as a table

Pennsylvania House Price Index, annual average (1991 = 100)
Year	Index (1991 = 100)
2014	189.29
2015	193.77
2016	200.64
2017	209.38
2018	219.53
2019	230.15
2020	247.20
2021	281.12
2022	310.37
2023	328.74
2024	350.40
2025	368.38

The Pennsylvania rules that affect a HELOC, in plain English

Pennsylvania has no special HELOC limits like a borrowing cap or a waiting period. These Pennsylvania laws still shape your HELOC. They come from the Pennsylvania statutes and court rules, summarized here in plain words.

Your line of credit

You can freeze the line.: Pennsylvania law lets you cap your line at what you owe today. You sign a written notice, serve a copy on the lender, and more than 3 days later record it with the county recorder of deeds. After that the lender no longer has to advance more.
One recording covers every draw.: Your HELOC mortgage is recorded once and secures your later draws too, even if the balance sits at zero for a while.

Taxes and licensing

No transfer tax on a HELOC.: Pennsylvania's 1% realty transfer tax applies to deeds. The law expressly leaves out mortgages and other loans secured by your home.
Use a licensed lender.: Lenders that aren't banks or credit unions need a Pennsylvania license under the state's Mortgage Licensing Act.

If you can't pay

Foreclosure goes through court.: A Pennsylvania foreclosure is a court case, an 'action in mortgage foreclosure' that follows the state's civil court rules.
30 days of notice first.: Once you are at least 60 days behind, the lender has to send you a notice (known as the Act 91 notice) at least 30 days before it demands full payment or starts a foreclosure. It covers HELOCs and other liens on an owner-occupied one- or two-family home you live in, but not FHA-insured loans.
Time to meet a counselor.: The notice gives you 30 days, plus 3 for mailing, to meet face to face with a consumer credit counseling agency. Once you meet, lenders who are notified cannot sue for up to 30 days.

Property tax basics

Homestead exclusion.: Where a local taxing body grants it, a homestead exclusion lowers the taxable value of the home you live in. It can't exceed half the median assessed value of homes there. Apply with your county assessor by March 1 (Philadelphia sets its own date).

Pennsylvania homeowners by the numbers

Median value of an owner-occupied Pennsylvania home: $277,600; U.S.: $360,600
Pennsylvania homeowners with no mortgage at all: 43.3%; U.S.: 40.3%
Owner-occupied homes in Pennsylvania: 3.7 million
Median yearly property tax paid in Pennsylvania: $3,214; U.S.: $3,211

Source: U.S. Census Bureau, American Community Survey 2024 1-year estimates.

One request, multiple Pennsylvania lenders

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LenderMatch never pulls your credit. A lender you choose to work with may check it, with your permission.

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Frequently asked questions

Do I pay Pennsylvania's realty transfer tax on a HELOC?

No. The 1% state realty transfer tax applies to deeds, and the law expressly excludes mortgages and other loans given as security for a debt.

Can I stop further draws on my Pennsylvania HELOC?

Yes. Pennsylvania law lets you limit the line to what you owe by serving a signed notice on the lender and recording it with the county recorder more than 3 days later.

Does my HELOC lender need a Pennsylvania license?

Yes, unless it is a bank, a credit union or another lender the Mortgage Licensing Act excepts.

Is foreclosure in Pennsylvania done through the courts?

Yes. Foreclosure in Pennsylvania is a court case under the state's civil court rules. Before it starts, the lender has to send the Act 91 notice at least 30 days ahead.

Does the Act 91 notice apply to a HELOC or second mortgage?

Yes, if the home is your principal residence and a one- or two-family owner-occupied home. The law covers any loan secured by a lien on the property, but not FHA-insured loans.

How much have Pennsylvania home prices risen?

On the FHFA House Price Index, Pennsylvania prices rose 3.93% in the year to mid-2026 and 37.2% over 5 years. From 2014 to 2025 they rose 94.6%.

Does checking my options with LenderMatch affect my credit?

No. LenderMatch never pulls your credit. A lender you choose to work with may check it, with your permission.

HELOCs in Pennsylvania: how much you can borrow and the state rules that apply

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