Mortgage Calculator & Current Mortgage Rates in Massachusetts

The current mortgage rates Massachusetts are 5.97% for a 30 year fixed, which is lower than the national average of 6.02%. The Massachusetts home loan funding rate is 61.42%, and the ownership rate is 62%, meaning that there are more houses than people in Massachusetts who own their homes outright. 

Read on if you’re looking to buy a home or refinance an existing loan. This article will explain all about current mortgage rates Massachusetts so you can make an informed decision before signing on the dotted line.

What is a Mortgage Rate?

A mortgage rate is the interest rate charged on a mortgage. It’s expressed as a percentage and includes fees, points, and other charges. The lower the rate, the more cheap your loan will be over time. 

On the contrary, the higher it is, the less affordable it will be. You can use a mortgage calculator MA to see how much you may be able to borrow based on your down payment and credit score. 

The vital thing to know about mortgage rates in Massachusetts when comparing mortgage lenders or refinancing is that they are fixed for the loan terms. This means that unless something changes in your financial situation or circumstances, there won’t be any adjustments throughout that period.

Current Mortgage Rates Massachusetts

If you’ve been looking for the best mortgage rate Massachusetts, you’re in luck. At this time, several banks and mortgage lenders offer some of the lowest rates around. 

A mortgage loan can be more accessible if you have an excellent credit report. The current mortgage rates Massachusetts are constantly changing, and they won’t last forever. If you want to take advantage of them, now is the time. Here are today’s mortgage rates:

• 30 Year Fixed at 6.30% vs. 6.17% from last week (+0.13 change)
• 15 Year Fixed at 5.77% vs. 5.31% from the previous week (+0.46 change)
• 30 Year Fixed Mortgage Refinance at 5.50% vs. 6.10% from last week (+0.25 change)
• 15 Year Fixed Mortgage Refinance at 5.50% vs. 5.00% from the previous week (+0.50 change)
• 15 Year Jumbo Loans Refinance at 3.11% vs. 3.15% from last week (-0.04 change)

Overview of Massachusetts Mortgage Rates

The current mortgage rates Massachusetts have seen a steady increase since late 2018, with a brief dip around the holidays. The average 30 year fixed mortgage rate is 6.30%, compared to 4.33% at the end of 2018, a difference of 1.97%. 

That’s not as much as in other states, where the average 30 year fixed rate is currently 3 percentage points higher than it was at the same time.

Median Home Value

According to the US Census Bureau, the median home value in Massachusetts is $398,800. This means that half of all homes are worth more than $398,800. 

Median house values are a good indicator of how the market is doing and how affordable houses are in your area compared with other parts of the state or country. In addition, the median property value is a great way to compare different cities when looking at Massachusetts mortgage rates. 

This gives you a sense of how much people spend on their houses overall. This also gives you an idea of how hard it might be for them to afford a mortgage payment on their current income level and debt load.

Loan Funding Rate

The loan funding rate is the interest rate you pay on your mortgage. It’s also called the mortgage rate, which differs from your annual percentage rate (APR). The loan funding rate in Massachusetts is 61.42%. 

For example, if you’re borrowing $250,000 to buy a home, you’ll pay $12,410 annually in interest. This does not include any origination fees or other closing costs.

Homeownership Rate

This is the percentage of households who own their home. It’s one of the most critical measures of a community’s economic health and stability. 

Additionally, this indicates how many people have invested their money and time into building wealth through property ownership. The current rate in Bay State is 62.7%, which falls below Massachusetts’ historical average of 65% and its recent high point (66%) recorded in 1999-2000.

Median Monthly Homeownership Rate

The median monthly homeownership cost is the median of all monthly mortgage payments made by all mortgagors. The US Census Bureau calculates this figure and determines a dollar amount for each county. 

According to the US Census Bureau, Massachusetts’ median monthly homeownership cost was $2,268 as of 2020. This is a slight increase from 2017’s figure of $2,200 but still below its peak at $2,300 in 2016 and 2015.

Massachusetts First Time Homebuyer Programs

Massachusetts residents may be eligible for a particular mortgage program to help finance a home purchase. The Massachusetts Housing Partnership has created several loan programs for first-time homebuyers (or those with little or no home equity lines) who meet certain income limits. Some of the Massachusetts mortgage resources are:

MassHousing Mortgage

MassHousing Mortgage is a state-chartered, nonprofit financial institution that provides low-interest loans to first-time homebuyers and homebuyers with disabilities. MassHousing Mortgage is a subsidiary of MassHousing, the state’s housing finance agency. 

MassHousing Mortgage provides financing for single family homes in Massachusetts. Loan limits range from $30,000 to $970,800, depending on the county and income level. 

There are also additional eligibility requirements based on what kind of property you’re buying (new construction or existing), your credit history, and the number of dependents.

MassHousing Down Payment Assistance Program

Suppose you’re a first-time homebuyer looking for assistance with your down payment and closing costs. In that case, several downpayment assistance programs are available in Massachusetts. 

The MassHousing Down Payment Assistance Program is one of them. This program provides funds to help eligible Massachusetts residents cover the costs of their downpayment and closing fees. Qualified borrowers can get up to $25,000 in down payment assistance (DPA) toward their purchase or refinance transaction. 

To qualify for this mortgage program, you must meet income limits or purchase a property in an area targeted by MassHousing, such as Boston or Springfield. You must also meet specific credit requirements, including having good credit scores of at least 640.

MassHousing Purchase and Renovation Program

MassHousing has created a program for those interested in purchasing or renovating a fixer-upper as an added incentive to buy a home in Massachusetts. The program offers down payment and closing cost assistance at low interest for up to 30 years. 

Additionally, it provides financing for purchasing the property and renovations together in one monthly mortgage payment. This makes it easier to afford to fix up your new home over time, as opposed to having separate loans.

Operation Welcome Home Program

The Operation Welcome Home (OWH) program is a MassHousing program that helps veterans with down payments and closing fees. The OWH Program provides up to $2,500 for first time home buyers of certain homes throughout Massachusetts. 

The funding can be combined with the down payment assistance program on the same property. This is available through MassHousing and the Department of Veterans Affairs. 

The OWH Program also offers homeownership counseling services through its approved service providers. They provide homeowner education courses, credit repair services, and financial literacy classes.

Workforce Advantage Program

Suppose you’re interested in taking out a mortgage and buying a home. In that case, it’s essential to understand your loan options for financing. The Massachusetts Housing Partnership offers one such equal housing opportunity: the Workforce Advantage Program. 

This program provides a fixed interest rate and 5% down payment assistance for the home purchase price. In Boston, it is $25,000, or up to $15,000 for the rest of Massachusetts. The program can purchase single family homes, condominiums, and multifamily properties like duplexes.

Massachusetts Housing Partnership Program

The Housing Partnership Program is a mortgage assistance program that offers borrowers the opportunity to purchase a home with a low downpayment. The program also has a low interest rate, meaning your monthly mortgage payments will be affordable. 

This home buying assistance is available to Massachusetts residents who meet income requirements and are seeking to buy an owner-occupied property for their primary residence. You may also qualify for this program’s subsidy if you have less than 80% of the area’s median income.

First Time Homebuyer Loans in Massachusetts

Suppose you’re a qualified first time home buyer. In that case, you may be eligible for special mortgage rates in Massachusetts and loan options. These loans are available from the Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA). 

These programs offer lower down payment requirements than conventional loans, but they have their own sets of rules that must be followed. The state offers two types of loans:

• Fixed interest rate mortgages have lower monthly payments than adjustable rate mortgages.
• An adjustable rate mortgage provides more payment flexibility and carries higher interest rates over time.

First-time homebuyers in Massachusetts can get a home loan, including FHA and a VA loan. The first-time homebuyer loan is an excellent way to help you get into that dream home you’ve been saving up for.

FHA Loans

This loan is certified by the Federal Housing Administration and is a government mortgage program. They’re designed to help first-time homebuyers with low down payment options which might not otherwise qualify for a conventional loan. 

The FHA offers better Massachusetts mortgage rates than traditional loans. However, they have stricter credit scores (580 or higher), a down payment, and FHA loan employment requirements. In addition to lower mortgage rates, FHA loans have higher loan limits than conventional mortgages. 

This means that if you want to purchase a home valued at more than $970,800 (the current national limit). Then an FHA loan is one way of doing so without putting up extra cash or taking out another mortgage later.

VA Loans

If you’re an active-duty servicemember, veteran, or have previously served in the US military. In that case, there’s a good chance that you qualify for a VA loan. What’s more, if your credit is less than perfect, this type of mortgage can still be an option for you. 

The Department of Veterans Affairs certifies VA loans, and it does so at very competitive rates compared to other types of mortgages. A VA loan comes with many advantages over other home loans:

• No downpayment
• No private mortgage insurance premiums
• Competitive interest rates
• Relaxed credit score requirements
• Closing cost limits of less than 4% of the total home loan
• No prepayment penalties

USDA Loans

These loans are a particular type of mortgage available to low-income families who meet specific requirements. Unlike other mortgages, USDA loans don’t require a down payment and have lower interest rates than conventional loans. They’re guaranteed by the Federal Housing Administration (FHA) and are considered some of the most affordable home loan options today.

Massachusetts Mortgage Taxes

Mortgage taxes are a percentage of the interest rate and are paid monthly. The tax rate is based on the type of loan and loan term. 

For example, if you have a 15-year fixed interest rate mortgage with an interest rate of 4 percent and $50,000 in closing costs, your yearly mortgage taxes would be $2,687 ($150 per month). If you have a 7/1 ARM with an interest rate of 3.5 percent and $30,000 in closing fees, your yearly mortgage taxes would be $3,376 ($175 per month). 

In Massachusetts, there is a flat income tax rate of 5%, depending on the taxable income bracket. However, there may also be additional city and county property taxes that need to be considered as well. Massachusetts also has a loan documents fee for real estate transfers ranging from $10 to $20, depending on whether you’re selling or buying.

Massachusetts Mortgage Refinance

You can refinance your home loan in Massachusetts to lower your monthly payments. Also, you can get rid of private mortgage insurance premiums (PMI) or shorten your loan terms. 

You may also get better mortgage and refinance rates of the current low Massachusetts mortgage rates. Massachusetts homeowners with good credit scores who have been paying on time will most likely receive the best rates. 

Fannie Mae offers a refinancing option as an alternative to the Home Affordable Refinance Program. This does not require 20% equity in the home or prior mortgages owned by Fannie Mae or Freddie Mac.

Use a Mortgage Calculator MA to Determine Monthly Payment

One of the best ways to get an idea of how much your mortgage payment will be is by using a mortgage calculator MA. Many websites offer these calculators for free and are straightforward to use. 

To figure out your monthly payment and total cost, simply plug in your loan amount, interest rate, and other variables such as taxes and homeowners insurance premiums. The calculator will then give you both current and historical rates. 

With this, you can see how they have changed over time. A mortgage calculator MA is also helpful in determining closing fees. Many people don’t realize that these can add up quickly.

How Do Loan Terms Affect Best Mortgage Rate Massachusetts

Loan terms can be anywhere from 30 vs. 20 vs. 10 and beyond. Still, most people choose between a 15 to 30 year fixed mortgage based on their financial situation and the amount of money they can afford each month. 

If you go with 30 year fixed rate loan terms, your monthly payments will be lower than if you took out a 20-year fixed rate mortgage. There are fewer payments over time and, therefore, more interest. 

However, if interest rates rise during those 30 years, they often do until they stabilize again at around 5%. Then your final payment could be much higher than if you went with 15 or 20-year fixed rate loan terms instead.

Benefits of a 30 Year Fixed Mortgage

A 30 year fixed mortgage is an excellent option if you’re looking for a low-maintenance loan. It’s a type of loan that allows you to lock in your interest rate for the life of the loan. This means you won’t have to worry about your payment amount changes. 

If you choose this option, your monthly payment will stay the same throughout the entire loan term of your loan. If you decide to refinance during your 30 year fixed mortgage. Then you may be able to get a favorable interest rate on your new mortgage and save money on monthly payments. 

However, refinancing is not always an option. It depends on factors like how much equity you have in your home and if there are any prepayment penalties associated with closing out your previous loan. 

In addition to providing peace of mind through stability, a 30 year fixed mortgage can offer lower interest rates than other types of loans. This is because a 30 year fixed loan guarantees repayment over time rather than just at one point. 

This can help borrowers who want to keep their payments low but don’t have enough cash. They can borrow against future income when they need more money than they currently have.

Conclusion

The mortgage rates Massachusetts and prices of homes are constantly changing. Now might be the perfect time to start your search if you want a house. 

If you already have a lower mortgage rate than currently available. Then you should consider refinancing to benefit from lower rates while they last. 

Your real estate agent is the best person to help you with your home buying process, and HOMES by ARDOR is here to help. They know the Massachusetts housing market inside and out, so they can guide you through every step of finding a home that’s right for you.