Massachusetts Mortgage and Refinance Rates

Current mortgage rates in Massachusetts

As of Wednesday, July 10, 2024, current interest rates in Massachusetts are 6.84% for a 30-year fixed mortgage and 6.40% for a 15-year fixed mortgage.

Massachusetts is an expensive state: The median home sale price as of the beginning of 2024 was $545,000, up 9 percent year-over-year — and $200,000 above the national price median of $343, 875. Those gains, plus today’s higher mortgage rate environment, continue to make housing affordability a challenge for Bay State residents.

Refinance rates in Massachusetts

While mortgage refinance rates have more than doubled since the pandemic, many Massachusetts homeowners have much more tappable equity now: the average mortgage-holder has gained $53,000 since 2023, according to CoreLogic. 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

• Most popular cities: Worcester, Springfield, Boston, Plymouth, Quincy
• Most affordable counties (based on median home value): Hampden, Berkshire, Barnstable, Hampshire, Worcester
• Median home sales price, Jan. 2024: $545,000
• Median down payment, Jan. 2024: $96,750
• Homeownership rate, Q4 2023: 62.8%

Sources: ATTOM, 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 43 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.

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 mortgages, as well as:

• Down Payment Assistance: This MassHousing program provides eligible borrowers up to $30,000 in down payment assistance (and up to $50,000 in Boston and some other areas). If you don’t qualify for this assistance due to income, you might be eligible for the agency’s Workforce Advantage program, which comes with similar benefits but wider eligibility criteria.
• 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.
• Operation Welcome Home: 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.

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:

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.

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.

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. If you’re in the market for a jumbo loan, check Massachusetts’ county-by-county loan limits.

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 rates, fees and terms.

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.

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