Massachusetts Home Loans & Mortgage Rates

Massachusetts is one of America’s most competitive and expensive housing markets, driven by world-class universities (MIT, Harvard, BU, Tufts), a dominant biotech/pharma corridor, leading healthcare systems, and a financial services hub. The statewide median sits around $600,000 with Greater Boston commanding even higher prices and exceptionally tight inventory.

Suffolk County (Boston) has a median approaching $700,000. Middlesex County (Cambridge, Somerville, Lexington, Concord, Framingham) runs approximately $720,000 and is one of the state’s priciest. Norfolk County (Quincy, Wellesley, Needham, Milton) about $650,000. Essex County (North Shore: Salem, Newburyport, Andover) approximately $580,000. Plymouth County (South Shore: Plymouth, Brockton) about $530,000. Worcester County offers relative value at roughly $400,000. Western Massachusetts (Hampden, Hampshire, Berkshire, Franklin counties) is significantly more affordable at $280,000-$350,000.

Massachusetts has a multi-tier FHA system with most eastern counties at or near the ceiling. The Boston-Cambridge-Newton metro (Suffolk, Middlesex, Norfolk, Plymouth, Essex) receives $1,209,750 FHA — near the national maximum. Even some western counties get elevated limits. Conforming limits in high-cost areas also reach $1,209,750.

MassHousing provides up to $30,000 in DPA. The ONE Mortgage Program eliminates private mortgage insurance. These are among the strongest state-level homebuyer programs in the Northeast, critical in a market where affordability is a major challenge.

2026 Loan Limit Takeaways

Five Boston metro counties plus the Islands receive the near-ceiling $1,209,750 FHA limit — matching the conforming limit. This means FHA and conventional have identical buying power in Greater Boston. Worcester and Bristol get elevated mid-tier limits. Only western MA counties (Hampden, Hampshire, Franklin, Berkshire) use the $541,287 baseline, but their affordable prices make that more than adequate. Cape Cod’s $724,500 FHA covers most purchases in that market.

Down Payment Assistance Notes

The ONE Mortgage no-MI program is nationally unique and extraordinarily valuable. On a $600,000 purchase, eliminating MI saves approximately $250-$500/month or $3,000-$6,000/year. Over 5 years, savings exceed $15,000-$30,000. MassHousing’s $30,000 DPA is among the most generous state-level programs. In Massachusetts’ expensive market, these programs are essential for affordability.

Closing Costs in Massachusetts

Massachusetts has above-average closing costs driven by its attorney requirement and high property values.

Transfer Tax (Excise Stamps): $4.56 per $1,000 of sale price (approximately 0.456%). Customarily seller-paid, though negotiable. On a $600,000 home, seller pays approximately $2,736.

Attorney State: Massachusetts requires attorney representation at closing. Buyer’s attorney typically $800-$2,000. This adds cost but provides important legal protection in complex transactions.

Title Insurance: Typically $2,000-$4,500 depending on purchase price.

Recording Fees: Vary by county. Registry of Deeds recording fees apply.

Estimated Total Buyer Closing Costs: On a $600,000 purchase, expect approximately $12,000-$24,000 (2.0-4.0%). The attorney requirement and high property values push costs higher than many states. Major buyer expenses are attorney fees, title insurance, lender fees, and prepaid items. The seller-paid transfer tax helps offset buyer costs.

Property Taxes in Massachusetts

Massachusetts property taxes are moderate to above-average, varying significantly by municipality.

Statewide Average: Approximately 1.12-1.23% effective rate. Median annual bill approximately $6,500.

Proposition 2½: Massachusetts limits property tax levy increases to 2.5% per year. New growth (new construction) is added on top. Override votes can increase above 2.5% with voter approval. This provides long-term stability for homeowners.

City/Town Rates (examples): Boston approximately 1.05% ($7,350 on $700K home). Cambridge about 0.95%. Quincy approximately 1.15%. Worcester about 1.50% ($6,000 on $400K). Springfield approximately 1.90% ($5,700 on $300K). Brookline about 1.10%. Newton approximately 1.05%.

Residential Exemption: Boston offers a significant Residential Exemption that reduces the assessed value for owner-occupied properties. In FY2025, the exemption reduces the taxable value by approximately $315,000. This can save Boston homeowners $3,000-$4,000/year.

On a $700,000 Boston home with residential exemption, expect approximately $3,500-$4,200/year. Without exemption, about $7,350. In Worcester on a $400,000 home, approximately $6,000. Cape Cod varies widely by town.

USDA Loan Eligibility in Massachusetts

Massachusetts has limited but notable USDA eligibility, primarily in western and rural areas.

Western Massachusetts has the most eligible territory: Berkshire County (Pittsfield, Great Barrington area), Franklin County (Greenfield, Deerfield area), Hampshire County rural portions (outside Northampton/Amherst). Southern Berkshires and northern Berkshires both have eligible areas.

Central Massachusetts has some eligible pockets in outer Worcester County. Plymouth County’s rural southern portions may have eligibility. Cape Cod and the Islands are generally not USDA eligible.

Most Eastern Massachusetts is not USDA eligible due to population density. Buyers in Greater Boston should focus on FHA, conventional, VA, or MassHousing programs.