According to Redfin, as of May 2026, the median sale price in Boston over the last three months is $852,000, which is a 1.9% increase from the previous year. Zillow estimates the average home value at $786,208, which has actually decreased by 0.9%, indicating a significant gap between the median sale price and the estimated average value.

This number is clear in its implications. If you purchase a home priced at around $850,000 with a 30-year fixed mortgage at 6.6%, your monthly principal and interest payments will range from $4,353 to $5,251 depending on your down payment percentage. Putting down 3.5% ($29,820) results in a monthly payment of $5,251, while a 20% down payment ($170,400) lowers it to $4,353.

While a lower down payment reduces initial cash outlay, it incurs monthly PMI. Even with a 5% down payment of $42,600 or 10% at $85,200, PMI still applies, and it is waived only with a 20% down payment. In a high-priced market like Boston, coming up with a 20% down payment can be a significant amount, leading many to consider support programs from MassHousing.

MassHousing offers up to $30,000 in down payment assistance for first-time homebuyers, with varying conditions based on income requirements and loan lock-in periods. The ONE Mortgage program allows for a 3% down payment with no PMI on a 30-year fixed loan, making it advantageous for first-time buyers with limited initial funds.

When comparing FHA and conventional loans, in high-priced markets like Boston, the loan limits themselves can be a critical factor. Properties exceeding the regional conforming loan limits are classified as jumbo loans, which may have stricter underwriting criteria, so it's important to check this in advance.

Property taxes also need to be considered. The average effective tax rate in Massachusetts is about 1.11%, which is higher than the national average. For a home priced at $852,000, the annual property tax would be $9,457, or about $788 per month. Since tax rates can vary significantly by town, it's wise to check the tax bill for any properties of interest directly.

The key to increasing approval rates is credit score and DTI. A score above 780 results in an average 30-year fixed rate of 6.59%, while scores in the 700s yield 6.91%. A backend DTI of 43% or lower and a frontend DTI of 28% or lower are favorable criteria for conventional loan approval.

Getting pre-approved before making an offer enhances competitiveness. Avoid new loans or job changes before closing, and prepare income documentation such as pay stubs and tax returns in advance to expedite the review process.

If you are receiving down payment funds as a gift, you will need to prepare a gift confirmation letter, and if your balance suddenly increases just before closing, you may be asked for documentation to explain it. Closing costs should also be prepared separately, typically ranging from 2% to 5% of the loan amount, which can be substantial in a high-priced market.

Closing costs include the escrow account fees for property taxes and insurance. In areas like Boston with high property taxes, initial escrow reserves can amount to thousands of dollars, so it's advisable to obtain a closing cost estimate in advance.

If you have self-employment or freelance income, average income is often calculated using tax returns from the last two years. If your income fluctuates significantly year to year, it's wise to consult with your lender in advance to prepare the necessary documents.

In addition to closing costs, it's prudent to keep several months' worth of living expenses as reserves for a stable review process.

In the Boston area, many Korean families prefer the Newton or Lexington school districts in Massachusetts, but school district boundaries change frequently, so it's advisable to check ratings on GreatSchools or Niche and verify the assigned school before purchasing. If moving from another state, it's also wise to factor in the high property taxes and homeowners insurance into your budget.

This article is not investment or legal advice, and it is recommended to consult with mortgage and tax professionals before making any actual contracts.