Massachusetts Mortgage Rates
March 5, 2015 03:01 AM Eastern
LendingTree mortgage companies approved to do business in the Bay State are ready to help you here. In Massachusetts the Office of Consumer Affairs & Business Regulation is responsible for regulating mortgage lenders and brokers.
Massachusetts Mortgage Rates
Mortgage rates vary between states not only because of competition between lenders but also because of different lending laws and economic conditions in every state.
Here are some current mortgage rates for Massachusetts
|5/1 Adjustable Rate||3.00%||3.12%||3.20%|
|15 Year Fixed Rate||3.25%||3.47%||3.37%|
|30 Year Fixed Rate||4.38%||4.52%||4.34%|
Buying a Home in Massachusetts
A quick snapshot of housing prices in Massachusetts shows that after declining from all-time highs in the first quarter of 2006, they have still not started to recover. The housing market is forecast to underperform during the next twelve months compared to the rest of the country, but that could bode well for serious buyers.
Price and affordability vary. For example, only about 60 percent of homes in Boston and Cambridge are affordable to median earners (the median price of a home is over $350,000). In Worcester, though, 81% of homes (median price $200,000) are affordable to households earning the median income. An even higher percentage of homes are affordable in Springfield.
More good news for homebuyers: Massachusetts ranks 41st in the country for closing costs--only $2,300 for a $200,000 mortgage.
A number of state and regional programs exist to give additional assistance to homebuyers in need:
- MassHousing - homebuyer programs that can offer down payment and closing cost assistance
- Massachusetts Housing Partnership - Soft Second Loan Program for first-time homebuyers
- Citizens' Housing and Planning Association - Massachusetts Home of Your Own Program for people with disabilities
- Habitat for Humanity - through volunteer labor, builds and rehabilitates houses for families in need
- U.S. Department of Agriculture Rural Housing - homebuyer programs in rural communities
City and town programs are also available and can be found on the HUD portal.
FHA Mortgages in Massachusetts
Just because FHA is a government mortgage program does NOT mean the government sets mortgage rates. You have to compare FHA mortgage quotes yourself. FHA loans are less popular in Massachusetts than in many parts of the country, but it's not hard to find FHA-approved mortgage lenders. In expensive areas like Nantucket and Martha’s Vineyard, the FHA loan limit is $729,750. In the counties comprising Boston and Cambridge metro areas, and in Essex County, the cap is $523,750. Limits vary elsewhere in Massachusetts. The lowest cap is $271,050 in Berkshire County.
If you are eligible for a VA mortgage, you can finance up to 100% of the home’s value. The VA does NOT put caps on loan amounts; however, most lenders limit loan amounts to four times the VA guarantee, and that amount varies by property location. In Nantucket County that amount is $1,094,625. Most lenders in Middlesex and Essex Counties as well as the counties that comprise the Boston area have a $500,000 cap; Dukes County’s limit is $723,750. All others have a $417,000 limit.