Getting the Best Mortgage Rates in Boston (10-15-30-Year Fixed, 5/1, 7/1 ARM)
Are you in the market to buy a home in Boston? As a first-time home buyer in Boston, one of the biggest challenges is finding competitive Boston mortgage rates that won’t break the bank.
Conversely, if you’re looking to refinance an existing Boston mortgage, you’ll want to find the best Boston mortgage rates to ensure that the refinancing process is as beneficial as possible.
Whether you are a first-time home buyer in Boston or a homeowner looking for the best refinance rates in Boston, taking the time to examine your options is key to saving money in the long-term.
Current mortgage rates in Boston are subject to change from one day to the next, so it’s important to weigh in your options between Boston mortgage lenders to get the best mortgage rates in Boston.
Mortgage Loan Types in Boston
Boston mortgage lenders provide both conventional and adjustable rate loan types. A few examples of conventional Boston mortgages include:
- 10-year mortgage loans
- 15-year mortgage loans
- 20-year mortgage loans
- 30-year mortgage loans
Conventional fixed-interest rate loans are popular choices for Boston mortgages for two reasons. First, as a fixed-interest rate home loan, the interest will stay at the same throughout the life of the mortgage.
Second, these types of mortgage rates in Boston use established industry and regulatory guidelines based on loan size and individual finances, typically lasting between 10-30 years.
Boston mortgages with shorter terms (10-20 years) are good for paying off a home faster and building equity. However, it’s important to note that these loans will have higher monthly payments and mortgage rates in Boston.
Mortgages with 10, 15, or 20-year terms are popular choices for Boston refinance rates. Adjustable mortgage rates in Boston include:
- 5/1 ARM
- 7/1 ARM
- 3/1 ARM
Key Requirements for Buying a House in Boston
Before you apply for Boston mortgages, you’ll want to complete the below list of requirements.
- Get your down payment ready (~20% of the loan amount)
- Maintain good to excellent credit
- Save some extra funds for your closing cost
- Maintain a low debt balance
- Demonstrate sufficient income
- Gather your financial documents
- Get a home appraisal on the home
You’ll also need to examine your options for conventional (10, 15, 20, or 30-year) or adjustable mortgage rates in Boston (5/1, 3/1, 7/1 ARM) before choosing between the best Boston mortgage for you.
Getting Better Mortgage Rates in Boston with Larger Down Payments
Although some Boston mortgage lenders require a down payment of 3 percent, the best way to secure great mortgage rates in Boston is to put down at least 20 percent of the home’s value.
Along with getting more favorable Boston mortgage rates, a higher down payment means that you can avoid paying extra for private mortgage insurance (PMI).
Boston mortgage lenders require the purchase of mortgage insurance for smaller down payments to protect their investments in case borrowers stop making payments.
Typically, borrowers must continue paying until they reach a loan-to-value ratio of 80 percent. While it may not help you cut down costs over the long-term, it certainly does provide short-term affordability for Boston mortgages.
According to Zillow, the average premium for PMI ranges between $30-$70 for every $100,000 borrowed, which could make it an affordable compromise for borrowers that can’t put down the full 20 percent to get lower mortgage rates in Boston.
Conclusion – Getting a Top Mortgage Loan for a Home in Boston
Buying a home takes time, not only to find the best Boston mortgage rates, but also to complete each step in the purchasing process.
From the time you submit an application until closing, most Boston mortgage lenders will need between 30-45 days to complete the proper paperwork. This means you will want to have some sort of plan to avoid additional expenses or unnecessary delays.
If you’re looking at Boston mortgage rates for your first home, you should consider applying a down payment of 20 percent or more, as many Boston mortgage lenders will waive the costs of mortgage insurance.
Conversely, for those planning on refinancing existing Boston mortgage rates, taking the time to compare offers from multiple lenders can be instrumental in keeping long-term costs down.
Ultimately, finding the best Boston mortgage rates and refinance rates will come down to understanding your unique financial situation and focusing on the long-term effects of mortgage rates in Boston.
Mortgage Rate Table Disclaimer
Click here to read AdvisoryHQ’s disclaimer on the mortgage loan table(s) displayed on this page.
AdvisoryHQ (AHQ) Disclaimer:
Reasonable efforts have been made by AdvisoryHQ to present accurate information, however all info is presented without warranty. Review AdvisoryHQ’s Terms for details. Also review each firm’s site for the most updated data, rates and info.
Note: Firms and products, including the one(s) reviewed above, may be AdvisoryHQ's affiliates. Click to view AdvisoryHQ's advertiser disclosures.