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Affordable Mortgage Comparison Chart

Estimated payments for a $250,000 mortgage

Household Income

Up to 80% AMI

ONE

Full Subsidy

MassHousing

Lender Paid MI

FHA

 

$956** $1,230* $1,284***
Per Month Per Month Per Month

Household Income

80% - 100% AMI

ONE

No Subsidy

MassHousing

Lender Paid MI 

FHA

 

$1,088 $1,230 $1,284
Per Month Per Month Per Month

Household Income

100% - 135% AMI

MassHousing

Lender Paid MI

FHA 

$1,230 $1,284
Per Month Per Month

 

ONE - Offers the lowest payments for 1st time homebuyers with incomes less than 100% area median income (AMI).

MassHousing -Offers the lowest payments for those with incomes 100%-135% AMI, 2nd time buyers, refinance and includes up to six months mortgage payment protection due to job loss.

FHA – While interest rates may be lower than MassHousing, the monthly mortgage payment is generally higher because it includes mortgage insurance costs for the life of the loan ($180 per month in this case), FHA insurance and an upfront premium added to the loan.

Figures as of May 13, 2016

Please note the estimated monthly payments exclude property taxes and homeowners insurance.

*MassHousing interest rate & monthly payment are for MassHousing mortgage with lender paid MI. Monthly payment for MassHousing with buyer paid MI is higher.  

**Payments will be $956 for the first 4 years, then gradually increase between years 5-8 as state subsidy is reduced. Payment will be $1,088  in year 8 and stay the same for the life of the loan. This is a fixed rate mortgage. The interest rate will stay the same throughout the 30 year term.

***FHA payment is higher than MassHousing and ONE, even though the interest rate is lower than MassHousing. This is because FHA borrowers must pay mortgage insurance costs for the life of the loan ($177 per month in this example). Unlike PMI for other loans, these  insurance costs continue even after the homeowner has reached 20% equity in their home. FHA also charges an additional mortgage insurance fee of 1.75% of the loan amount due at closing. The amount would be $4,375 in this example. It can be rolled into the mortgage. The FHA monthly payment of $1284 shown here assumes that the homebuyer has added the upfront MI to the mortgage amount, so the total borrowed is $254,375.