Massachusetts Mortgage and Refinance Rates

Current mortgage rates in Massachusetts

As of Saturday, December 21, 2024, current interest rates in Massachusetts are 6.85% for a 30-year fixed mortgage and 6.14% for a 15-year fixed mortgage. While today’s rates are well above those appealing sub-3% rates of early 2021, they are much more attractive than the rates buyers were dealing with in the fall of 2023.

If you’re looking for affordable housing, it might be harder to find in the most desirable areas of Massachusetts. As of August 2024, the state’s median single-family home sales price jumped to $654,450, while the median sales price for condos hit $550,000, according to the Massachusetts Association of Realtors. This has always been a fairly expensive place to call home, but it’s particularly tough right now: At the beginning of August, there were fewer homes for sale in Massachusetts than at any other point in the past 20 years.

Refinance rates in Massachusetts

For Massachusetts homeowners who purchased in the fall of 2023, rates have come down enough that it may make sense to go through the process to refinance and secure a lower rate. If you’re a homeowner who has been in your property for an extended period of time, it’s worth figuring out how much your house is worth: Since property values have been trending upward here for such a long time, it’s possible you’ve  accumulated a sizable amount of equity. With a cash-out mortgage refinance, you could take advantage of this asset to help further your financial goals.

National mortgage rates by loan type

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 here, there are some areas where condo living can make a meaningful difference in your budget. In Middlesex County, for example, the median condo sales price was $665,000 as of August 2024 — much cheaper than the $840,000 you’d need for a typical single-family home in the same area. Likewise, in Norfolk County, the typical condo was $280,000 cheaper than a single-family home. Here are more statistics:

• Most affordable counties, August 2024: Berkshire, Franklin, Hampden, Hampshire
• Median home sales price, August 2024: $654,450
• Median down payment, June 2024: $142,000
• Homeownership rate, Q4 2023: 61.9%

Sources: ATTOM, Massachusetts Association of Realtors, U.S. Census Bureau

Mortgage options in Massachusetts

If you’re in need of a mortgage to buy or refinance a home in Massachusetts, explore these options:

• 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 no more than 45%. If you make a down payment of less than 20%, 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%, 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% 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 between $25,000 and $30,000 in down payment assistance. The program has two options: a 0% deferred loan of up to $30,00 that is due when the first home is paid off or sold and a 15-year loan up to $25,000 with a 2% interest rate. You’ll need to earn less than $191,700 per year 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 $2,000 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:

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.

Read more from Jeff Ostrowski

Edited by: Troy Segal, Senior Editor, Home Lending

I’ve been writing and editing stories in the personal finance sphere for two decades, for publications like Business Week and Investopedia, covering everything from entrepreneurs to taxes. Since coming to Bankrate, I’ve concentrated on real estate, mortgages, renovations and other financial aspects of homeownership — helping people understand how a home isn’t just a place to live, but an investment that’s important to building and bequeathing wealth. 

Read more from Troy Segal