Massachusetts Mortgage Rates

July 23, 2017 02:54 AM Eastern

Refinance rates now in Boston, MA [Change this]

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    Home Price (Purchase)
    When you get a mortgage to purchase a home, the lender uses the lower of the agreed-upon purchase price or the property's appraised value to determine your maximum loan amount. The loan amount divided by the property home price equals your loan-to-value ratio, or LTV. That ratio is one of the major factors that lenders use to set your mortgage rate. If your LTV exceeds 80 percent, you'll probably be required to pay mortgage insurance, which increases your monthly payment. If the property appraises for less than the agreed-on purchase price, you are not usually required to complete the purchase.
    Home Value (Refinance)
    This is your estimate of the current value of your property. When you refinance, your home is almost always evaluated by a licensed appraiser. The refinance loan amount divided by the property's appraised value equals your loan-to-value ratio (LTV), and that number is one of the major factors that determine your mortgage rate. To get an accurate refinance rate quote, your home value estimate must be reasonably accurate.
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    Down Payment
    The down payment is the amount you pay upfront when you finance property. Your purchase price minus your down payment equals your mortgage amount. The higher your down payment, the more likely you are to be approved for a home loan. If your down payment is less than 20 percent of the purchase price, you'll probably be required to pay for mortgage insurance, which increases your monthly payment.
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    Credit Score
    Your credit score is a number designed to measure your credit-worthiness. It's based on a formula that combines many factors, including your payment history, amount of credit used and number of accounts. This number is used by lenders to calculate the probability that you'll default on your mortgage. Most lenders won't approve mortgages to applicants with credit scores lower than 620. Your credit score is one of the most important factors that determines your mortgage rate - applicants with higher scores are offered better mortgage rates.
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Mortgage rate quotes displayed on LendingTree LoanExplorer℠, including loan pricing data, rates and fees, are provided by third party data providers including, but not limited to, Mortech®, a registered trademark of Zillow®, LoanXEngine, a product of Mortgage Builder Software, Inc., and LoanTek, Inc.

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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. Stay ahead on rate trends with our mortgage rate lock recommendations.

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:

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.

VA Loans

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.