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Massachusetts Mortgage and Refinance Rates
Current mortgage rates in Massachusetts
As of Monday, January 20, 2025, current interest rates in Massachusetts are 0.00% for a 30-year fixed mortgage and 0.00% for a 15-year fixed mortgage.
Refinance rates in Massachusetts
Refinance rates are still much higher than they were a few years ago during the pandemic. Because of that, many homeowners are holding on to lower mortgage rates, so refinancing now doesn't look too appealing. If rates drop in 2025, refinancing activity could rise.
However, if you have owned your property for a long time, it’s worth figuring out how much your house is worth. Massachusetts homeowners have enjoyed some of the biggest gains in equity in recent years. With a cash-out mortgage refinance, you could take advantage of this asset to help further your financial goals.
Massachusetts mortgage rate trends
In 2024, mortgage rates mostly hovered around the 6 to 7 percent range. While mortgage rates are hard to predict and change frequently, many experts believe that 2025 will be much of the same in terms of rate movement, despite starting the year above 7 percent.
High mortgage rates and rising home prices can make home affordability a challenge for prospective homebuyers in Massachusetts. The median sales price of a single-family home in the state was $626,000 as of December 2024, according to data from the Massachusetts Association of Realtors. This marks an increase of over 10 percent from the year prior.
National mortgage rates by loan type
| Product | Interest Rate | APR |
|---|---|---|
| 30-Year Fixed Rate | 7.11% | 7.16% |
| 15-Year Fixed Rate | 6.39% | 6.47% |
| 5-1 ARM | 6.56% | 7.11% |
| 30-Year Fixed Rate FHA | 7.07% | 7.12% |
| 30-Year Fixed Rate VA | 6.88% | 6.92% |
| 30-Year Fixed Rate Jumbo | 7.14% | 7.19% |
Rates as of Monday, January 20, 2025 at 6:30 AM
Mortgage statistics for Massachusetts
Living in Massachusetts can be expensive, which is part of the reason it sits among the states with the lowest homeownership rates in the U.S. If you’re looking to buy a home in Boston — the most populous city in Massachusetts — you’re going to need a bigger budget. In November 2024, the median sales price of a single-family house in Boston was a record-high $865,000, according to the Greater Boston Association of Realtors.
As you begin your search for the right place to call home in Massachusetts, consider these other statistics:
- Most affordable counties, October 2024: Franklin, Hampden, Hampshire, Worcester
- Median single-family home sales price, December 2024: $626,000
- Median down payment, October 2024: $120,000
- Homeownership rate (Q3 2024): 62.3%
Sources: ATTOM, Massachusetts Association of Realtors, U.S. Census Bureau
Mortgage options in Massachusetts
- Massachusetts conventional mortgages: To qualify for a conventional mortgage, you’ll need a minimum credit score of 620 and a debt-to-income (DTI) ratio of no more than 45 percent. If you make a down payment of less than 20 percent, you’ll need to pay private mortgage insurance (PMI) premiums, as well.
- Massachusetts FHA loans: If your credit history disqualifies you from a conventional mortgage, you might be able to obtain a loan insured by the Federal Housing Administration (FHA). If you have a down payment of at least 3.5 percent, you could qualify for this type of loan with a credit score as low as 580.
- Massachusetts VA loans: If you’re a veteran or active-duty member of the military, you might qualify for a mortgage backed by the Department of Veterans Affairs (VA). A VA loan doesn’t require a down payment or mortgage insurance, but you do need to pay a funding fee, which starts at 2.15 percent for homebuyers.
- Massachusetts jumbo loans: Depending on where you’re buying and how much you can put down, you may need to compare lenders that offer jumbo mortgages. These exceed the conforming loan limits (which vary by county in Massachusetts) and require a larger down payment, along with a higher credit score.
First-time homebuyer programs in Massachusetts
If you’re a first-time homebuyer in Massachusetts, you might qualify for help purchasing a home. MassHousing, the state’s housing finance authority, helps connect borrowers with lenders offering lower-cost conventional and FHA mortgages, as well as:
- Down Payment Assistance: This MassHousing program provides eligible borrowers with up to $30,000 in down payment assistance. The program has two options: a 0 percent deferred loan of up to $30,000 that is due when the first home is paid off or sold and a 15-year loan up to $25,000 with a 2 percent interest rate. You’ll need to earn less than $191,700 to qualify.
- Purchase and Renovation Loan: For those interested in buying a fixer-upper, MassHousing offers the Purchase and Renovation mortgage program. Though not specifically created for first-time homebuyers, this program provides another affordable route to homeownership: financing for both buying the home and renovations, which are combined into a single monthly mortgage payment. Note: There are income limits for the program, which vary by city.
- Closing cost credit for service members: This program is available to first-time homebuyers (and repeat buyers in select areas) who are active-duty military, veterans, Gold Star families or in the National Guard or Reserves. It provides closing assistance of as much as $2,500, money that can be combined with a down payment assistance program.
Another unique feature of MassHousing mortgages is that they come with job loss protection: If you lose your job, the insurance can help cover payments up to $4,000 per month for six months.
How to find the best mortgage rate in Massachusetts for you
When shopping for a mortgage, compare at least three loan offers — research shows this exercise can save you thousands of dollars over the life of a loan.Bankrate can help you find the best mortgage deal. Here are some basic steps to securing a loan on favorable terms:
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Step 1: Strengthen your credit score
Long before you start looking for a mortgage lender or applying for a loan, give your finances a checkup, and improve your standing if needed. This means pulling your credit score and credit reports. You’re entitled to a free credit report from each of the three main reporting bureaus (Experian, Equifax and TransUnion), which you can get through AnnualCreditReport.com.
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Step 2: Determine your budget
To find the right mortgage, you’ll need a good handle on how much house you can afford. That’s because a lender could qualify you for more mortgage than you need, or one that would max out your budget and leave no room for unexpected expenses.
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Step 3: Know your mortgage options
There are a few different types of mortgages. Many lenders offer conventional loans that require as little as 3 percent down. FHA loans also have a low down payment threshold, while VA loans (for veterans) and USDA loans (for borrowers in rural areas) have no down payment requirement.
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Step 4: Compare rates and terms from several lenders
Don’t settle on the first lender you talk to — rate-shop with at least three different banks or mortgage companies. You can look to your bank or other banks, credit unions, online lenders and local independents to ensure you’re getting the best deal on mortgage rates, fees and terms.
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Step 5: Get preapproved for a mortgage
As you comparison-shop, keep in mind that getting a mortgage preapproval is the only way to get accurate loan pricing for your specific situation.
Additional Massachusetts mortgage resources
- Massachusetts loan limits by county: Learn the conforming loan limit for your city or town.
- Massachusetts mortgage lenders: Explore mortgage lenders throughout the state
- How to buy a house in Massachusetts: Get set up for successful home-hunting with this guide.
- Best homeowners insurance in Massachusetts: Compare policies from a variety of providers.
Meet our Bankrate experts
Written by: Jeff Ostrowski, Principal Reporter, Mortgages
I cover mortgages and the housing market. Before joining Bankrate in 2020, I spent more than 20 years writing about real estate and the economy for the Palm Beach Post and the South Florida Business Journal. I’ve had a front-row seat for two housing booms and a housing bust. I’ve twice won gold awards from the National Association of Real Estate Editors, and since 2017 I’ve served on the nonprofit’s board of directors.
Edited by: Laurie Richards, Editor, Home Lending
I’ve spent five years in writing and editing roles, and I now focus on mortgage, mortgage relief, homebuying and mortgage refinancing topics. I’m most interested in providing resources for aspiring first-time homeowners to help demystify the homebuying process. In 2021, I earned a Poynter ACES Certificate in Editing. I have an MA in English.