The median sale price in Boston is around $852,000 as of May 2026. According to Redfin, this is a 1.9% increase compared to the same period last year. In contrast, Zillow's home value index shows a decrease to $786,208, down 0.9%, indicating a discrepancy between actual sale prices and appraised values due to differences in timing and methodology.

When examining mortgage structures at this price point, the down payment ratio is the biggest variable affecting monthly payments and initial cash burden. FHA loans require a minimum credit score of 580 for a 3.5% down payment, while those with scores between 500 and 579 need 10%. Conventional loans can start at 3% for first-time homebuyers or those with an area median income below 80%, typically proceeding around 5%. PMI is required for down payments under 20%, but waived for 20% or more.

In a high median price market like Boston, the difference in these ratios can translate to tens of thousands of dollars. For an $850,000 home with a 5% down payment, the initial cash required would be $42,500, while a 20% down payment would require $170,000. Whether one can manage this difference becomes a practical benchmark for deciding between renting and buying.

As of July 2026, interest rates based on Freddie Mac PMMS show the average 30-year fixed mortgage at 6.55% to 6.72%. The larger the loan amount, the more significant even a 0.1% difference can feel in monthly payments, so it's essential to compare estimates from different lenders during the pre-approval stage.

The effective property tax rate in Massachusetts is about 1.11% on average. However, property taxes are set by the 351 cities and towns, leading to significant regional variations, and the actual tax rate in Boston may differ from the state average. For accurate tax amounts, please refer to the Boston city assessor's data.

One way to reduce the initial cash burden is through down payment assistance from the Massachusetts Housing Finance Agency, MassHousing. The standard program offers up to $30,000 at 0% interest with deferred repayment, applied alongside the first mortgage. In the first half of 2026, a temporary expanded program provided up to $25,000 for households earning up to 135% of the area median income, but the application deadline may have passed, so please check masshousing.com for currently available programs.

Korean parents often compare school districts in the Boston area, looking at outer towns like Lexington and Needham alongside the city itself. While GreatSchools can provide ratings, boundaries change frequently, so it's advisable to verify assigned schools before purchasing.

In summary, Boston's median prices are among the highest in the nation. To accurately gauge monthly burdens, one must consider down payment ratios, interest rates, property taxes, and down payment assistance together.

During the pre-approval stage, lenders typically review DTI, or debt-to-income ratio. Generally, the loan limit is set so that total debt payments do not exceed around 43% of pre-tax income, and in a market like Boston, where loan amounts are substantial, managing this ratio becomes a key factor in approval.

Closing costs should also be calculated in advance. Combining appraisal fees, title insurance, and loan fees typically ranges from 2% to 5% of the sale price, which for an $850,000 home could amount to between $17,000 and $42,500. Requesting a closing cost estimate from the lender during the pre-approval stage can also be helpful.

For families moving from out of state, it's wise to budget for Massachusetts's property taxes and insurance rates, which may feel different from their previous residence. This article does not constitute investment or legal advice, and it is recommended to consult with professionals before finalizing any contracts.