In Massachusetts, you will pay roughly $283 above the national average for your mortgage payments. An array of factors influence mortgage prices in Massachusetts, which you need to consider while estimating your monthly mortgage payments. You need to evaluate factors like the state’s property tax rates, your investments, debt and other financial commitments in addition to other expenses related specifically to your mortgage.
The real estate tax rate in Massachusetts is 1.23% and it ranks 34th in the list of states with the lowest property and real estate tax. The annual property tax that you may need to pay in this state is around $2,667.
For personalized quotes on home loans in the state, you can use our Massachusetts mortgage calculator. You can change the variables, like the length of the loan, interest rates, home loan price and other expenses while checking which variable is affecting the mortgage payment the most. This way, you can also cut down expenses that are not necessary and thus reduce your mortgage payments as well.
Start Here: Plug In Your Mortgage Factors
Our mortgage calculator for Massachusetts can help you estimate your mortgage payments. We break down all the factors included in the calculator below.
Massachusetts Mortgage Calculator
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Why and How to Use Our Mortgage Calculator
When buying a home in Massachusetts, the average cost is $408,100. You can find out how much a mortgage will cost you by using our Massachusetts mortgage calculator. The calculator evaluates 12 points to determine how much of a loan you’ll need and the most important factors influencing the cost of your mortgage.
When using the calculator, decide on the loan amount you want, your down payment, interest, type of mortgage and other factors. The calculator includes all of the following information.
Enter the maximum amount you want to spend when purchasing a home or the loan amount you can afford.
This is the amount of money you put down when buying a house. It can be entered as a number or percentage of the value of the home.
You can enter the interest rate offered by the lenders or check our mortgage rate page for the latest interest rates from different lenders in the state.
Enter the number of years it will take you to repay the loan. Most people take a loan for 15 years to 30 years. However, you can choose a shorter tenure of 10 years as well.
Payments per Year:
Usually, monthly payments are made towards mortgages for homes. It means there will be 12 payments per year.
This is how much you pay the government each year. On average, the property tax in Massachusetts is $2,667.
Anyone whose house is located within a homeowners association has to pay a certain fee annually or monthly.
Principal & Interest:
The lender lends you an amount which is referred to as the principal, and the interest they charge is the cost of borrowing the money.
This is the total monthly payment, which will include the principal, interest, HOA fees, home insurance cost and property taxes.
The principal amount is a part of your mortgage payment. As you keep paying the monthly mortgage, the principal decreases.
The interest payment will eventually reduce as the overall outstanding loan amount reduces.
Total Cost with Interest:
The total cost refers to the total amount you pay at the end of the loan tenure, which will include the total interest.
If you want to save money on your mortgage payments, there are several ways to do so. Here are some of the most popular options:
- Buy a more affordable house. When you buy a cheaper home, the amount of money you need to borrow is less. When you borrow less money, your monthly mortgage payments will be lower.
- Buy in a different location. Massachusetts is not the cheapest state when it comes to property taxes. If you want to save money, you might want to consider purchasing a home elsewhere.
- Find a lower interest rate. Comparing at least three lenders may help you get a better interest rate and save you money.
- Extending your loan terms. Consider increasing the length of your loan term. While this will cost you less per month, it will raise your overall costs.
Next Steps: What to Do After You Have Estimated Your Mortgage Payments
MoneyGeek compiled details and information about different lenders, interest rates and mortgages in Massachusetts to help homebuyers in their journey.
- Shop & Compare Rates – When buying a home and looking for a mortgage, make sure you check and compare different lenders. This is because Massachusetts’ mortgage rates can vary between lenders.
- Not Ready to Buy? – If you are not sure whether to rent vs. buy a home in Massachusetts, you can learn more about the different aspects of buying and renting a home.
- Learn More – To learn more about different types of mortgages, like reverse mortgages, VA loans or FHA loans, you can check out our resources.