PHILADELPHIA - Provident National Bank, a participant in a low-cost state mortgage program for first-time home buyers, said the program had been extended until Sept. 15, or until $25 million in mortgage loans is committed.

The Pennsylvania Housing Finance Agency was to conclude the program this week but is seeking to offset recent increases in mortgage interest rates.

The annual percentage rate for the new money is 7.85% over 30 years. The state requires a 5% down payment, 40% of which can be contributed by a relative. The state has waived the one-point origination fee and $300 administration fee. Low-income buyers also can apply for up to $2,500 in state assistance on closing costs.

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