Market Overview: Massachusetts Housing Upper Mid-Range
Massachusetts ranks as a upper-mid-range housing market, with a median home price of $635,252. The state's effective property tax rate of 1.20% is higher than the national average of 1.00%, and annual homeowners insurance averaging $1,703 falls below the US median of $2,201.
These three factors — price level, tax burden, and insurance costs — combine to shape the true monthly cost of homeownership in Massachusetts. Below we break down a realistic purchase scenario using state-specific data.
🏡 Purchase Example: Buying a $635,252 Home in Massachusetts
Using the state's median home price of $635,252, a 20% down payment, and a 6.5% 30-year fixed rate, here is the complete picture of what it costs to buy in Massachusetts:
| Cost Component | Amount |
|---|---|
| Home Price | $635,252 |
| Down Payment (20%) | $127,050 |
| Loan Amount | $508,202 |
| Estimated Closing Costs (3.5%) | $22,234 |
| Total Cash Needed at Closing | $149,284 |
Monthly Payment (20% Down)
| Item | Monthly |
|---|---|
| Principal & Interest | $3,212 |
| Property Taxes (1.20%) | $635 |
| Homeowners Insurance | $142 |
| PMI (not needed at 20% down) | $0 |
| Total Monthly Payment | $3,989 |
Annual income needed (28% DTI): $171,000/yr
PMI Scenario: What If You Put Only 10% Down?
With a 10% down payment ($63,525), you'd have a loan of $571,727 and would need to pay Private Mortgage Insurance (PMI) at roughly 0.7% of the loan annually:
| Item | 10% Down | 20% Down (savings) |
|---|---|---|
| Principal & Interest | $3,614 | $3,212 |
| Monthly PMI | $334 | $0 |
| Total PITI+PMI | $4,724 | $3,989 |
The lower down payment costs you an extra $735/month (P&I + PMI). You would need $203,000/yr to qualify under the 28% DTI rule. PMI can typically be canceled once you reach 20% equity.
First-year interest: In year one, $32,866 of your payments go to interest alone. Over the full 30-year term, you'll pay $648,183 in total interest.
💰 State-Specific Cost Notes for Massachusetts
Property taxes in Massachusetts are 1.20%, meaning about $7,623/year ($635/month) on the median-priced home.Homeowners insurance in Massachusetts averages $1,703/year ($142/month).
Closing costs in a upper-mid-range market like Massachusetts typically run 2%–4% of the purchase price — roughly $22,234 on a $635,252 home. This includes loan origination, appraisal, title insurance, escrow fees, and prepaid taxes/insurance.
Monthly Payment on a $635,252 Home in Massachusetts
With a standard 20% down payment ($508,202 loan) and a 6.5% interest rate on a 30-year fixed-rate mortgage, your estimated total monthly payment comes to $3,989.
Monthly Payment Breakdown (PITI)
| Component | Monthly Cost | Annual Cost |
|---|---|---|
| Principal & Interest | $3,212 | $38,544 |
| Property Taxes (1.20% est.) | $635 | $7,620 |
| Home Insurance | $142 | $1,704 |
| Total Monthly Payment | $3,989 | $47,868 |
Income Required in Massachusetts
Using the standard 28% front-end DTI rule, you'd need a gross annual income of approximately $171,000 to comfortably afford the median-priced home in Massachusetts with 20% down at 6.5%.
How Interest Shapes Your Payments
In your first year, approximately $32,866 goes toward interest alone. Over the full 30-year term, you'll pay a total of $648,183 in interest.
Amortization Schedule — First 10 Years
| Year | Principal Paid | Interest Paid | Balance Remaining |
|---|---|---|---|
| Year 1 | $5,680 | $32,866 | $502,522 |
| Year 2 | $6,061 | $32,485 | $496,461 |
| Year 3 | $6,467 | $32,080 | $489,994 |
| Year 4 | $6,900 | $31,646 | $483,095 |
| Year 5 | $7,362 | $31,184 | $475,733 |
| Year 6 | $7,855 | $30,691 | $467,878 |
| Year 7 | $8,381 | $30,165 | $459,497 |
| Year 8 | $8,942 | $29,604 | $450,555 |
| Year 9 | $9,541 | $29,005 | $441,014 |
| Year 10 | $10,180 | $28,366 | $430,834 |
* Full 30-year amortization available in our interactive calculator.
❓ Frequently Asked Questions — Buying a Home in Massachusetts
How much income do I need to buy a house in Massachusetts?
With the median home price in Massachusetts at $635,252 and a 20% down payment, you need roughly $171,000/year based on the 28% front-end DTI rule (total monthly housing costs of $3,989). If you put down 10%, the income requirement rises to about $203,000/year due to the higher loan amount and PMI.
What's the minimum down payment in Massachusetts?
While 20% down ($127,050) avoids PMI, many Massachusetts buyers opt for lower down payments. FHA loans require as little as 3.5% ($22,234), and conventional loans can go as low as 3%–5% ($19,058–$31,763). However, a 10% down payment ($63,525) would cost you $4,724/month — about $735 more than 20% down — due to PMI and a larger principal.
What are property taxes like in Massachusetts?
Massachusetts's effective property tax rate is 1.20%, which is moderate the national average of 1.00. On a $635,252 home, you'd pay approximately $7,623/year in property taxes ($635/month).
How much is homeowners insurance in Massachusetts?
The average annual premium in Massachusetts is $1,703, which is roughly in line with the US median of $2,201. This is a relatively affordable insurance market for homeowners. This adds $142/month to your payment.
What are the total closing costs for a home in Massachusetts?
On a $635,252 home in Massachusetts, expect to pay about $22,234 in closing costs. Combined with a 20% down payment ($127,050), you'd need approximately $149,284 in cash at closing. First-time buyers in Massachusetts may qualify for down payment assistance programs or reduced closing costs through local housing authorities — check MassHousing for available grants and low-interest loan programs.
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Disclaimer: This is an estimate for informational purposes only. Actual mortgage payments depend on your credit score, exact interest rate, property taxes, insurance premiums, PMI, and other factors. Sources: Zillow Q1 2025 (median home prices), ATTOM 2025 (property tax rates), Quadrant Information Services Feb 2025 (insurance premiums). Consult a qualified mortgage professional for personalized advice. See our full Disclaimer.