Alert Message

Cambridge mortgages made simple

As is the trend across the country, mortgage rates are at an all-time low in Cambridge. With many homes to meet every budget, there is something for everyone right here by the river. Are you overwhelmed trying to crunch those important numbers? Rest easy. Earnest has a calculator to help you figure out your target budget.

Find out how much you can afford in Cambridge

From tree-lined streets to river views, this town has it all

Cambridge is packed with spacious single-family homes. With large back and front yards, homes within walking distance of the river, and several very well-ranked schools for children, Cambridge has a lot to offer. Cambridge has a median home price of $189,000, giving you many options for your budget, and you will certainly benefit from these mortgage rates at 30-year lows. Mortgage rates in Cambridge currently range from 3.6 percent to 4.2 percent.

Cambridge's best home loans

Low mortgage rates make buying a home that much easier

Mortgages can be overwhelming, but it is our job to streamline the process and make it less intimidating. Mortgage rates depend on many different factors such as loan purpose, ZIP code, purchase price, and your credit score. Keep in mind that veterans are eligible for special rates. And when considering Cambridge properties, make sure to talk to your realtor about any other potential discounts. If you're thinking about refinancing your mortgage, the process is very similar to investing in a new one. Refinancing can help homeowners free up money for other major purchases such as college tuition. Whether you're switching the length of your term or want to change from ARM to a fixed rate, we help you figure out the best options for your unique situation.

Common Questions About Cambridge Mortgage Rates

All The Answers You Need to Settle Down Sooner

Should I choose a fixed or adjustable rate?

It depends how long you expect to stay in the home. Adjustable rates are good for people who may not be in the home long, whereas fixed rates are ideal for people who are confident of settling in.

Do I need a home appraisal?

Probably—in most cases, the homebuyer must use an appraiser to evaluate the value of the home. Appraisal costs vary depending on the value of the property, as well as the state the house is in. Buyers cannot choose their own appraiser—the bank makes the decision.

What is PMI?

Private mortgage insurance (PMI) is required when a homebuyer makes a down payment of less than 20%, or when a borrower refinances with less than 20% equity in the home. PMI fees vary according to your down payment and credit score, and adds a premium to your monthly mortgage payment. Please note, PMI is tax-deductible in 2015 and 2016 for certain income brackets.

What does Loan-to-Value mean?

Loan-to-Value (LTV) is the percentage of your home’s value that your loan represents. When refinancing, the calculation is simply the loan amount divided by the appraised value. When buying a home, the LTV is found by dividing by either the purchase price or appraised amount, whichever is lower. When the LTV is less than 80%, the lender generally requires PMI.

For example:

Purchase price: $100,000
Down payment: $15,000
Loan amount: $85,000
Appraised value: $110,000
LTV: $85,000/$100,000 = 85%

What are closing costs?

Closing costs are standard fees associated with a real estate transaction. You will typically pay about 2-5% of the purchase price in closing costs—the exact amount depends on where you are buying (or refinancing), as well as number of extra fees involved in your particular transaction. Earnest charges no lender fees, so the borrower is only responsible for 3rd-party fees.

What should I consider before refinancing my mortgage?

Refinancing your home loan is an attractive option when rates are low. A simple rate and term refinance can help you lower your monthly payment and potentially eliminate your PMI premium, as long as you have built up enough equity in the home. You might also use a cash-out refinance to access some of the equity you’ve built up in the home (which may result in a higher monthly payment on your new loan).

However, keep in mind that refinancing a mortgage does involve several fees (closing costs). Before refinancing, you should calculate the ‘break-even’ point at which your refinanced loan makes up for the closing costs. If you plan to leave your home before this time, it’s better to stay with your current mortgage.

Knowledge Is (Buying) Power

Further Resources from the Earnest Blog

People around a computer

The intelligent home loan

When it comes to finding the right home loan, Earnest works hard to ensure that the process pain-free. We use an industry-leading and intuitive online-only application (meaning most times no scanner or fax machine required), a 5-star client service team, and a unique rolling pre-approval that stays current while you track down that perfect home. At Earnest, the home loan process is like no other.