Current Massachusetts Mortgage and Refinance Rates

There are many factors determining mortgage rates, but only some of them are within your control. Below are some of the most effective steps you can take to get the best mortgage rate:

1. Boost your credit. Your credit score is one of the first factors lenders look at when assessing your loan application. Push your score as high as you can to get the best mortgage rates.
2. Lower your debt-to-income (DTI) ratio. Your DTI ratio is another crucial number that lenders use to evaluate you. It not only tells them how much debt you’re carrying now, but how much they think you can afford to add on. If you can lower your DTI, you’ll look like less of a risk to lenders and get lower rate offers.
3. Buy a single-family, site-built home. Lenders also see certain forms of housing as a little more risky than others. Borrowers buying a manufactured home, a multifamily home, a vacation home or an investment property will usually have to pay higher interest rates.
4. Pay mortgage points. Mortgage points give you the chance to “buy down” your interest rate, which can be very appealing in today’s market. You can usually reduce your quoted rate by up to 0.25 percentage points for each mortgage point you purchase. It may seem strange, but it’s essentially an upfront interest payment that can save you far more over the entire loan term.
5. Compare offers from multiple lenders. Compare loan estimates from three to five lenders — it’s a straightforward way to make sure you’re getting the lowest interest rate possible. It can also save you thousands or tens of thousands of dollars in interest charges, according to LendingTree data.

→ Massachusetts conventional loans. It’s easy to see why conventional loans are a common choice — they typically offer reasonable interest rates and loan terms. However, you will need to meet the minimum requirements set by Fannie Mae and Freddie Mac to qualify.

→ Massachusetts FHA loans. FHA loans are in reach for more borrowers than conventional loans are, as FHA loan requirements are a little less stringent. If you have a credit score between 500 and 579, you’ll need to put 10% down. For borrowers with a 580 credit score or higher, though, a 3.5% down payment is the minimum.

→ Massachusetts VA loans. VA loan requirements are even more forgiving than conventional or FHA loan requirements. There’s no minimum credit score set by the VA — though many lenders set a 620 minimum — and no minimum down payment as long as you have full VA loan entitlement. These include the ability to purchase or refinance without making a down payment or paying for mortgage insurance.

→ Massachusetts streamline refinances are for borrowers who want to refinance from an FHA loan into another FHA loan, or from a VA loan into another VA loan. FHA streamline refinance loans and VA interest rate reduction refinance loans (IRRRLs) allow for a quicker process with less documentation — which is why they’re called “streamline” refinances.