Jul. 02, 2025
HARRISBURG – Rep. Tim Twardzik (R-Schuylkill) is pleased to announce
House Bill 1103, bipartisan legislation he co-sponsored with Rep. Morgan Cephas (D-Philadelphia), has been signed into law by Gov. Josh Shapiro.
The new law gives borrowers greater flexibility in the mortgage process by allowing lenders to offer discount points. This enables consumers to reduce their interest rates and monthly mortgage payments.
“This is a commonsense, bipartisan win for Pennsylvania homebuyers,” said Twardzik. “By modernizing outdated lending rules, we’re helping people lower their monthly costs and making it easier for working families to afford and keep their homes.”
The law repeals provisions in the Loan Interest and Protection Law (Act 6 of 1974) that previously prohibited lenders from offering discount points on second mortgages. This change brings Pennsylvania in line with 45 other states and allows consumers to voluntarily pay points up front in exchange for lower long-term interest rates.
It applies only to residential loans and does not affect commercial lending. Homeowners may also benefit by using discount points as a cost-effective way to access equity for renovations, debt consolidation or other personal needs.
The law will take effect in 60 days.
Representative Tim Twardzik
123rd Legislative District
Pennsylvania House of Representatives
Media Contact: Will Jones
717.260.6615
wjones@pahousegop.com
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