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How Much House Can I Afford in Massachusetts (2025 Guide)

Buying a home in Massachusetts is exciting  but figuring out how much you can really afford is the key to a confident, stress-free purchase. Between housing prices, taxes, insurance, and lender requirements, understanding your true budget keeps you from overstretching and helps you find a home that fits your lifestyle and your wallet.

Understanding
Home Affordability

When lenders talk about “affordability,” they mean the maximum home price your income, savings, and debts will allow. A good rule of thumb is that your monthly housing payment shouldn’t exceed 28% of your gross income, and your total monthly debt shouldn’t exceed 36%.

Key Ratios Landers Use

Front-End Ratio

% of income that goes to housing costs (mortgage, taxes, insurance, HOA) - limit ~28%

Back-End Ratio

End Ratio: % of income that goes to all debt payments (housing + credit cards, car loans, etc.) – limit ~36%

Example: If your household income is $120,000/year (~$10,000/month), a safe monthly housing payment would be about $2,800, and total debt (including housing) should stay under $3,600.

Local Massachusetts Costs You Should Expect

Massachusetts has higher-than-average housing costs, so factoring in local expenses is crucial:

  • Median home price (2025): $650,000 statewide; Medford averages $750,000; Newton/Brookline can exceed $1 million

  • Property tax rate: ~1.1% – 1.3% of assessed value

  • Home insurance: $1,200 – $2,000 per year

  • Utilities & maintenance: Estimate ~1% of property value per year

  • Closing costs: Typically 2% – 5% of the purchase price.

This guide is for informational purposes only and does not constitute financial or lending advice. Always consult a licensed mortgage professional before making purchasing decisions.

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