Please ensure Javascript is enabled for purposes of website accessibility Cephas bill to cut mortgage interest rates heads to governor’s desk

Cephas bill to cut mortgage interest rates heads to governor’s desk

Provides pathway for lower interest rates and access to credit

Philadelphia House Delegation    June 26, 2025 | 2:40 PM

HARRISBURG, June 26 – Today, the Pennsylvania Senate unanimously approved legislation sponsored by state Rep. Morgan Cephas, D-Phila., that would permit mortgage lenders to offer discount points to borrowers to lower their interest rate and monthly payments. House Bill 1103 now awaits the signature of Gov. Josh Shapiro for it to be enacted into law.

The bill would expand opportunities for affordable credit so that homebuyers wouldn’t need to turn to higher interest options like personal loans or credit cards.

“I’m thankful that the Senate unanimously agreed with this bipartisan solution to helping Pennsylvania homebuyers and homeowners. In these times of financial insecurity, the option to buy down the interest rate on a mortgage can mean significant monthly savings,” Cephas said.

“Reducing monthly costs will keep Pennsylvania competitive by encouraging workers and families to stay here and build communities. I’m focused on helping more people afford their dream home and be able to stay in that home and build generational wealth. I look forward to having Governor Shapiro sign this into law in the near future.”

House Bill 1103 would align Pennsylvania law with the practices and laws of 45 other states providing consistency for multi-state lenders. This will not apply to commercial loans. Homeowners who have an existing mortgage could also benefit with a cost-effective avenue to access the equity in their home to consolidate debt, fund renovations for their home or other immediate uses for personal capital.

The 192nd Legislative District comprises communities in West Philadelphia that are north and west of Market Street including Overbrook, Overbrook Park, Wynnefield, Carroll Park and others.