Get the Best Mortgage Rate as a Boston, MA Homebuyer!

As your Boston real estate agent, it’s my job to keep you updated on the most current and significant news in real estate. Lately, news has been focused on rising mortgage rates in the past couple of weeks. Interest rates for a 30-year mortgage rose from 3.56 percent to 4.29 percent and then to 4.51 percent.

So, what does this mean for you as a Boston homebuyer? It means that the sooner you buy a Boston home, the less you’ll pay in interest and in your monthly mortgage payments! Better Homes and Gardens Real Estate shared an infographic that shows you just how much more you’ll be paying per month, depending on the price of the house and the mortgage rate.

As you can see, the price quickly increases each month as the mortgage rate rises. No one knows for sure how fast or how high they will continue to rise, but KCM Crew estimated that they’ll level off between 4 and 5 percent. Although, other experts have predicted they’ll rise up to 6.5 percent.

 

Now that you know this, there is still good news about buying a Boston home right now! Here is what The Fiscal Times shared recently:

• As mortgage rates rise, lenders might ease up on their mortgage standards, giving you more of a chance to obtain a mortgage loan. 

• Inventory is starting to rise, so you have more options in the Boston real estate market.

• Investors are starting to leave the market, also giving you more options. 

• Buying is still cheaper than renting. 

• Mortgage rates are still low by historical standards. The average interest rate for a 30-year mortgage was once 8 percent! Anything below 5 percent was considered a gift.

When applying for a mortgage, what can you do to ensure the lowest possible rate? Here’s what I would recommend:

• Improve your credit score. You can do this by paying down debt, paying bills on time, not opening new lines of credit and paying off credit cards, but leaving them open. 

• Increase your down payment. Consider getting another job or moving back home or in with a roommate to save money. Make lifestyle changes, like brewing coffee at home and brown-bagging your lunches!

• Consider your options with loan lengths. Shorter term loans, such as 15 or 20-year loans, have lower interest rates than 30-year mortgages.

If you have questions or you’re ready to buy a Boston home, contact me, your Boston real estate agent! I am eager to help you achieve this exciting milestone!

Patti Fine
Phone: 617-642-7585
Email: pf@pattifine.com
Patti Fine Real Estate
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