How Much Will Your Mortgage Be in Massachusetts?
One of America's original 13 colonies, Massachusetts offers more than 1,500 miles of Atlantic shoreline and just under 7 million residents. The largest cities are Boston, Worcester, Springfield, Lowell, and Cambridge.
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Factors That Can Affect Your Massachusetts Mortgage Calculations
Home Prices in Massachusetts
Between 2018 and 2019, median home values in the state increased 5.4%. The median home value is slightly over $400,000 and the median listing price is $468.500. Boston and the surrounding area is a very in-demand place—the city itself has a median home value of $594,600 and the median list price is $749,900. In nearby Cambridge, the median home value is $804,500 and the median listing price is $830,000. Amherst, on the other hand, has home values at $336,800, and Springfield has even more affordable houses, the median home value being $226,400.
Property Taxes in Massachusetts
The median property tax bill is $4,309, which is on the higher end due to the state’s strong housing market and the high value of real estate there.
Property taxes are determined by the assessed value of your home which is assessed on a yearly basis. Any issue you might have with the determined value can be filed in an abatement application, which if accepted, will mean a partial refund of your property taxes.
Massachusetts Job Stats to Consider
Education is a major employer in the state—Massachusetts being home to Harvard University, Northeastern University, Tufts University, and MIT. Other important industries are finance, defense, energy, and maritime activities.
In all, 16 Fortune 500 companies are based in the state, including General Electric (GE), Liberty Mutual, TJX, and Raytheon. The public corporations employing the most people in the state are Partners HealthCare, the University of Massachusetts, Stop & Shop, Harvard University, and Steward Health Care.
When it comes to income, Massachusetts ranks high: the per capital personal income for 2018 was well above $71,000, which is higher than the national average of $54,420. Unemployment is also 2.9 in Massachusetts, under the national average of 3.5%.
Massachusetts Job Stats to Consider
As of December 2019, the civilian labor force in Massachusetts was 3.8 million and the unemployment rate was 2.8%. The occupations with the highest number of employees in the state are Office and Administrative Support, Sales, and Food Preparation and Serving, which employs greater than 1.1 million people.
Job Stats (Civilian Labor Force, Employment, Unemployment)
Other Massachusetts Costs That Can Affect Massachusetts Mortgage Calculations
Homeowners Insurance in MA
The average yearly premium for homeowners insurance is $1,635 which is somewhat higher than the national average. Part of the high cost is due to some homes being exposed to storm surges along the coasts. Massachusetts' state Property Insurance Underwriting Association offers basic insurance for anyone who is unable to obtain coverage in the marketplace.
You should expect to pay an additional 1.2% to 2.2% of your new home’s value in closing costs in Massachusetts based on your home’s location. These costs include expenses tied to mortgage taxes, transfer taxes, and related fees such as origination fees.
Real Estate Transfer Tax
This fee is typically paid by the seller and amounts to $2.28 on every $500 of the purchase price of the home. This tax rate does not apply to Barnstable, Dukes, and Nantucket counties, however.
Before signing the papers, you should consider paying for a home inspection to help you better ascertain the condition your prospective home is in. A home inspection is not mandatory, but nearly all homebuyers choose to get an inside look at the home they are considering purchasing. These inspections can cost between $300 and $500 depending on the square footage of the home.
A home inspection will examine a home's walls, floors, plumbing, basement, foundation, and any readily-accessible parts of a home. Additional test for water quality, air quality, or mold will require hiring a professional at your expense.