MASSACHUSETTS MORTGAGE REFINANCE RATES TODAY
Current mortgage refinance rates in
Massachusetts.
Current mortgage refinance rates in
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Compare mortgage refinance rates in Massachusetts.
Key Points
• Economic factors such as Federal Reserve policy, inflation, and the bond market influence mortgage refinance rates, as does your personal financial profile.
• Even a 1% drop in your mortgage refinance rate can lead to a considerable cut in your monthly payments and substantial savings over the loan’s lifetime.
• Typically, you need at least 20% equity in order to refinance a mortgage.
• Refinance rates in Massachusetts have been on a rollercoaster, with the average 30-year fixed rate increasing from 3.15% in 2021 to 7.00% in 2023.
• VA loans, backed by the U.S. Department of Veterans Affairs, are known for their competitive mortgage refinance rates, making them a top choice for veterans and active-duty service members.
• Refinancing to a 15-year mortgage can benefit your finances: It could save you a significant sum in total interest, even though it might mean a bump in your monthly payments.
Introduction to Mortgage Refinance Rates
Thinking about refinancing your Massachusetts mortgage? To start with the basics, a mortgage refinance involves replacing your current home loan with a new one. Typically, people do this to snag a lower interest rate or more favorable terms.
Mortgage refinance rates can fluctuate (more on that in a moment), and understanding the “how” and the “why” of these variations can be crucial to making a savvy financial move. Whether you’re aiming to reduce your monthly payments, shorten your loan term, or access cash, the type of refi you opt for will impact your mortgage refinance rate. This guide is here to walk you through how mortgage refinance rates are determined and how you can lock in the most competitive rate available.
💡 Quick Tip: Wondering how to refinance a mortgage? The process, which takes about 30 to 45 days, is similar to when you got your original home loan.
Where Do Mortgage Refi Interest Rates Come From?
Mortgage rates go up and down, and when they hit new highs or lows, they can even make news headlines. When you’re thinking about refinancing a home loan, it’s helpful to know that rates are a product of both the economic landscape and your personal financial picture.
• In terms of economic factors, Federal Reserve strategies, inflation trends, the bond market, and housing inventory all play a role in impacting interest rates. For example, when inflation is high or the federal funds rate is on the rise, mortgage refinance rates tend to follow suit. On the other hand, a surge in bond prices often leads to falling interest rates.
• If the market is slow and properties are sitting, lenders might lower their rates to attract more customers. But when housing inventory is low, bidding wars may occur, and lenders may raise their rates in what is known as a hot market.
• In terms of your own financial profile, having a higher credit score can unlock lower rates. A solid score conveys that you’ve handled credit responsibly in the past, so you are less of a risk than someone with a lower score that indicates that they may have been late with payments in the past or missed them completely.
By staying up to speed on these factors, you can better time your refinance to your advantage.
How Interest Rates Affect Home Affordability
Interest rates play a significant role in the affordability of your mortgage refinance. Your monthly payment hinges on your loan amount, the term over which you repay, and the refinance rate you secure. It’s a critical aspect of your monthly budget, so securing as low a rate as possible is an important achievement.
Here’s an example of just how big a difference a point or two can make to an interest rate:
• If you took out a $200,000 30-year loan at 8.00%, you’d be looking at $1,467 each month.
• If you had the same loan at 6.00%, you would make a monthly payment of $1,199.
That difference of $268 more in your bank account every month is significant. What’s more, over the life of the loan, having refinanced to the lower rate could save you close to $100,000. Even a seemingly small rate reduction can translate to substantial savings over time.
Of course, there are likely to be closing costs and other fees associated with refinancing, even if a no-closing-cost loan is advertised. The charges can get rolled into your monthly payment or can result in a higher rate.
Why Refinance in Massachusetts?
There are several very good reasons to consider refinancing in Massachusetts, and they typically revolve around improving your financial situation. That, however, could mean lowering your monthlies, plain and simple, or it might mean freeing up a lump sum of cash from your home equity for another purpose, such as financing fertility treatments or paying for a child’s education.
Curious about how soon you can refinance your mortgage? Just remember, you should have at least 20% home equity before refinancing, especially if you plan to cash out some equity.
Common Reasons to Refinance a Mortgage
Here are some common reasons homeowners refinance their mortgage:
• You qualify for a lower interest rate due to market conditions (meaning rates have fallen) or because you’ve built your credit and qualify for more favorable offers..
• You’re considering altering your repayment term to either ease monthly payments or pay off the loan quicker.
• You may want to cash out some of your home equity to achieve personal or financial goals.
• Your adjustable rate is about to reset, and you’re interested in the stability that locking in a fixed-rate loan can provide.
• You have a Federal Housing Administration (FHA) loan and 20% equity, and you want to ditch your FHA mortgage insurance premium.
How to Get the Best Available Mortgage Refi Interest Rate
When you’re ready to make your move and refinance, here are tips to help you secure a competitive mortgage refinance rate:
• Build your credit score by always making payments on time, keeping your credit utilization ratio low (below 30% or, if possible, lower than 10%), and avoiding new debt.
• Lower your debt-to-income (DTI) ratio.
• Compare rates and fees from multiple lenders, even if the first offer you get sounds good enough.
• Think about buying mortgage points (aka discount points) to lower your interest rate. (While you do pay more upfront, this move can help you pay less in interest over the life of your mortgage.)
• Choose a shorter loan term, even if it means higher monthly payments. This can significantly lower how much you pay in interest overall.
Understand Trends in Massachusetts Mortgage Interest Rates
The past few years have seen a lot of movement in national and Massachusetts mortgage refinance rates. Historic lows morphed into a 7.00% annual percentage rate (APR) in 2023. Although rates were expected to fall in 2024, early 2025 forecasts suggest that rates will remain high for the time being. Here’s a closer look at these fluctuations.
Historical U.S. Mortgage Interest Rates
Mortgage refinance rates in the United States have seen their fair share of ups and downs. In 2021, the average 30-year fixed mortgage refinance rate was about 3.15%. Fast forward to 2023, and we saw that number climb to 7.00%. These shifts are tied to larger economic movements, like inflation and the Federal Reserve’s policies.
To make the best decision about when to refinance your mortgage, it’s essential to understand these historical trends and how they can help you secure a more favorable mortgage refinance rate. Here’s a graph showing you where mortgage interest rates have been over the last few decades. You can follow current mortgage rates online to expand your intel.
Historical Interest Rates in Massachusetts
Massachusetts mortgage refinance rates have followed national trends and have therefore seen some significant changes over the past few years. If you’re a homeowner in Massachusetts, it’s important to keep an eye on rates and consider a refi when the time is right.
Understanding how rates have changed in the past can help you make an informed decision about refinancing your mortgage. Below, you can compare Massachusetts vs. U.S. rates from 2000 to 2018. While they mostly follow the same patterns, they’re not identical. (Note: The Federal Housing Finance Agency stopped compiling state averages after 2018, which is where this chart ends.)
| Year | Massachusetts Rate | National Rate |
|---|---|---|
| 2000 | 7.88 | 8.14 |
| 2001 | 6.93 | 7.03 |
| 2002 | 6.38 | 6.62 |
| 2003 | 5.55 | 5.83 |
| 2004 | 5.38 | 5.95 |
| 2005 | 5.62 | 6.00 |
| 2006 | 6.32 | 6.60 |
| 2007 | 6.30 | 6.44 |
| 2008 | 5.96 | 6.09 |
| 2009 | 4.86 | 5.06 |
| 2010 | 4.76 | 4.84 |
| 2011 | 4.44 | 4.66 |
| 2012 | 3.63 | 3.74 |
| 2013 | 3.71 | 3.92 |
| 2014 | 3.94 | 4.24 |
| 2015 | 3.71 | 3.91 |
| 2016 | 3.54 | 3.72 |
| 2017 | 3.86 | 4.03 |
| 2018 | 4.33 | 4.57 |
Choose the Right Mortgage Refi Type
Now, onto the important topic of selecting the right kind of refi loan. The specific choice you make will impact your mortgage refinance rate and the overall cost of the loan. Take a closer look at these options:
Conventional Refi
A conventional refi, also known as a rate-and-term refi, is a popular choice for many homeowners. These loans often have higher rates than government-backed loans (FHA, VA, USDA), but those loans have specific eligibility requirements that not everyone will meet. Conventional refinances can be a great option if you’re looking to lower your interest rate or adjust your loan term. Typically, you’ll need a solid credit score and enough equity in your home to qualify.
Cash-Out Refi
Homeowners can leverage their home equity with cash-out refinances. These refis provide a lump sum that can be used for renovations, debt consolidation, and other significant expenses. For example, if your home is valued at $500,000 and you have a $300,000 mortgage, you have $200,000 in equity. Lenders may allow you to borrow up to 80% of your equity, which could yield an additional $100,000-plus beyond your current loan amount. You might then use this to pay off high-interest debt. Keep in mind, though, that cash-out refis usually come with higher rates than standard refinances.
15-Year Mortgage Refi
Opting for a 15-year mortgage refinance can be a smart play, provided you’re comfortable with the increased monthly payments. Say you have a 30-year, $1 million loan at a 7.50% rate, which translates to a monthly payment of roughly $6,992 and a staggering $1,517,167 in total interest over the loan’s lifetime. (Yes, you read that right: The interest totals more than the principal.)
Now, consider refinancing to a 15-year mortgage at 7.00%, which would bump up your monthly payment to about $8,988 but would also slash your total interest by a whopping $900,000.
Adjustable-Rate Mortgage Refi
Adjustable-rate mortgages (ARMs) typically start with a lower initial mortgage refinance rate than fixed-rate loans, but their rate can adjust up or down as market conditions change. If you have a 30-year fixed-rate mortgage and plan on moving before the term is up, refinancing to an ARM could help you save money on interest in the short term.
But it’s important to be prepared for the possibility that your rate and payment could increase in the future. For instance, if you wind up not selling your house as planned, you could face a considerably higher mortgage payment when the rate hike hits.
FHA Refi
FHA loans are so named because they are backed by the Federal Housing Administration. They often offer more favorable mortgage refinance rates, potentially up to a full percentage point lower than conventional loans. However, borrowers must meet eligibility requirements.
While some FHA refis are exclusive to existing FHA loan holders, such as FHA Simple Refinances and FHA Streamline Refinances, two other types are available to those without an FHA loan: the FHA cash-out refinance and the FHA 203(k) refinance, the latter being a renovation or rehabilitation loan. It can be smart to acquaint yourself with how these work if you are looking for a loan for either purpose.
VA Refi
VA loans, backed by the U.S. Department of Veterans Affairs, consistently offer some of the most competitive mortgage refinance rates available. They are available to active and past members of the military and some spouses.
In order to be eligible for a VA refinance, formally known as an interest rate reduction refinance loan (IRRRL), you must have an existing VA loan. If you fall into that category, this refinance program can potentially enable you to secure a more favorable interest rate and reduce your monthly payments.
Recommended: How Much Does It Cost to Refinance a Mortgage?
Compare Mortgage Refi Interest Rates
To secure a competitive mortgage refinance rate and save money, follow this advice:
• Compare rates from multiple lenders. Shopping around can help you unlock the best deal for your particular needs and situation.
• Consider the annual percentage rate (APR), including interest, fees, and discount points, vs. focusing on the interest rate alone.
• Keep in mind that balancing rate and fees can be an important step. Lower rates, for instance, may have higher costs.
• Do the math, and estimate savings on offers you are considering and the break-even point (that’s the time at which the cumulative savings from your new home loan equals the total cost of refinancing). This can give you insight into what’s the right option.
• Consult a lender or mortgage professional for more details and support to be sure you understand your alternatives and their implications.
Use an Online Refinance Calculator
You’ve heard the value of “doing the math” a couple of times now as you compare refi loans. Fortunately, that doesn’t necessarily mean breaking out pencil and paper (unless you want to, of course). There are a lot of great tools and calculators to help you understand the complexities of mortgage refinancing.
Online refi calculators can help you see how much you might save on your monthly payments and on the total amount of interest you’ll pay over the life of the loan. By entering your current loan details and the new mortgage refinance rate, you can quickly get a sense of the potential financial benefits of refinancing. It’s that easy!
Run the numbers on your home loan.
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Mortgage calculator
Punch in your home loan amount and a new interest rate, and we’ll estimate your payoff date.
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Down payment calculator
Enter a few details about your home loan and we’ll provide your monthly mortgage payment.
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Home affordability calculator
Provide us with a few details and see how much you can afford to spend on a home purchase.
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
The Takeaway
Refinancing your mortgage can be a smart financial move, but it’s not something to rush into. Whether you’re looking to lower your monthly payment, tap into your home’s equity, or pay off your mortgage sooner, it’s important to understand the different types of refinance loans and to carefully consider your eligibility. By comparing offers from multiple lenders, you can ensure that you get the best rate and terms for your financial situation and goals.
SoFi can help you save money when you refinance your mortgage. Plus, we make sure the process is as stress-free and transparent as possible. SoFi offers competitive fixed rates on a traditional mortgage refinance or cash-out refinance.
A mortgage refinance could be a game changer for your finances.
FAQ
Can you request a reduction in your interest rate from your lender?
You can indeed request a lower interest rate, especially if rates are falling. If you’ve got a solid credit score and a history of timely payments, your lender just might be open to the idea. But remember, lenders take into account a variety of factors when considering rates, such as market conditions and your financial profile. If you think you’re in a good position for a lower rate, it’s worth having a chat with your lender to see what’s possible.
What are the closing costs for a refinance?
Typically, closing costs hover between 2% and 5% of your loan amount. So for a $300,000 mortgage refinance, you might be looking at anywhere from $6,000 to $15,000. The final figure can vary based on your lender, the loan type, and where your property is located. It’s a good idea to keep these costs in mind as you budget for your refinance, as they can significantly impact the overall loan cost.
How many times can you refinance your home loan?
There are no restrictions on how many times you can refinance your home, but each time you do, you’ll need to pay closing costs, and the hard credit pulled involved could affect your credit. It’s important to weigh the benefits of a new mortgage refinance rate against these costs to make sure it’s a good decision for you.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article. Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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More refinance resources.
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How Much Does It Cost to Refinance a Mortgage?
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How to Refinance a Home Mortgage Loan
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7 Signs It’s Time for a Mortgage Refinance