Compare different loan terms using your home price of $350,000 with $70,000 down at 6.8%.
15-Year Fixed
$2,401/mo
Total interest: $152,141
Total cost: $432,141
Save $221,646 vs 30-year
20-Year Fixed
$2,088/mo
Total interest: $221,025
Total cost: $501,025
Save $152,762 vs 30-year
30-Year Fixed (Current)
$1,816/mo
Total interest: $373,787
Total cost: $653,787
Lowest monthly payment
Pro
Professional Simulator
Complete financial model: closing costs breakdown, rent vs buy, inflation-adjusted returns, true cost of ownership
years
%
%
%
%
10-Year Net Gain/Loss
-$173,685
After selling in year 10 at $493,710
Total Paid Over Hold Period
$398,929
Down + closing + all payments
Home Value at Sale
$493,710
3.5%/ yr appreciation
Selling Costs
$29,623
6% of sale price
Net Sale Proceeds
$225,244
After mortgage payoff + selling costs
Real Interest Rate
4.25%
Nominal 6.8% - inflation 2.5%
Real Monthly Payment
$1,254
Today's dollars (mid-loan)
State Property Tax
$5,600
TX rate: 1.6%
True Monthly Cost
$2,499
PITI + HOA + maintenance
Buying a Home in Massachusetts
Massachusetts has one of the most competitive housing markets in the Northeast, with an average home price of $600,000. The Greater Boston metro — encompassing cities and towns within commuting distance of the city — consistently ranks among the most expensive housing markets in the country. Cambridge, Somerville, Newton, and Brookline regularly see median prices exceeding $1 million, while inner suburbs like Quincy, Malden, and Medford offer relative value for buyers priced out of Boston proper.
Massachusetts is home to world-class universities, hospitals, and biotech and tech companies that maintain strong demand and high incomes in the region. This persistent demand has created a deeply competitive market where multiple-offer situations and waived contingencies are common. Worcester, Springfield, and the Pioneer Valley offer more affordable alternatives for buyers willing to commute or work remotely.
The state's ONE Mortgage program — a collaboration between MassHousing and participating lenders — is one of the better first-time buyer products in the country, offering below-market rates with no private mortgage insurance for qualifying buyers. Massachusetts also has elevated conforming loan limits in several counties, allowing buyers to access conventional financing at higher price points.
Key Housing Facts for Massachusetts
Average home price: $600,000
Average effective property tax rate: 1.15%
Average homeowners insurance: $1,500/year
High-cost area loan limits: up to $862,500 in Boston metro counties
Attorney closing state — legal fees required
Most expensive markets: Cambridge, Boston, Newton, Brookline, Wellesley
More affordable markets: Worcester, Springfield, Lowell, Fitchburg
Frequently Asked Questions
Massachusetts has an average effective property tax rate of approximately 1.15%. On a $600,000 home, you'd pay roughly $6,900 per year in property taxes. Rates vary by municipality, and Proposition 2½ limits annual increases in property tax levies to 2.5%. Qualifying homeowners can apply for senior, veteran, and low-income exemptions through their local assessor.
MassHousing offers the MassHousing Mortgage with MI Plus, which includes mortgage insurance that covers monthly payments if the borrower loses their job. Down Payment Assistance of up to 5% of the purchase price is available as a second mortgage. ONE Mortgage is a subsidized product offered through the Massachusetts Housing Partnership with below-market rates and no PMI for qualified buyers.
Several Massachusetts counties are designated high-cost areas with elevated conforming loan limits. For 2026, Middlesex, Norfolk, Suffolk, and Essex counties have limits up to $862,500 for a single-family home, compared to the national baseline of $806,500. This allows buyers in the Boston metro to use conventional financing rather than jumbo products at higher loan amounts.
Closing costs in Massachusetts typically range from 2–4% of the purchase price. Massachusetts has an excise tax on deeds of $2.28 per $500 of value (paid by the seller), but buyers pay title insurance, attorney fees (attorney closing state), and loan origination costs. On a $600,000 home, buyer closing costs can run $12,000–$24,000. Budget carefully, especially in the Boston metro.