🏡 1. Home Purchase Price (What It Starts With)
Prices in Massachusetts are higher than the national average. According to recent data:
-
Typical home value in MA: around $640,000–$650,000 (varies by area). In Central Massachusetts, the average home price is closer to $450,000-$490,000.
-
In some markets like Greater Boston, median single-family prices can be $1 million or more, dramatically increasing upfront costs.
Your total cash needed will scale with your purchase price.
💰 2. Down Payment
The down payment is often the biggest lump sum you need upfront.
Typical Requirements
-
Minimum required by many lenders: as low as 3–3.5% of the purchase price (often via programs or government-backed loans)
-
Common conventional down payment: 10–20% of the home price
Example Numbers
| Home Price | 3% Down | 10% Down | 20% Down |
|---|---|---|---|
| $500,000 | $15,000 | $50,000 | $100,000 |
| $650,000 | $19,500 | $65,000 | $130,000 |
| $1,000,000 | $30,000 | $100,000 | $200,000 |
💡 Tip: Putting down 20% avoids Private Mortgage Insurance (PMI) and can lower monthly payments, but it’s not mandatory.
🧾 3. Closing Costs and Other Fees
Even after your down payment, you’ll need additional cash at closing:
Typical Closing Costs in Massachusetts
-
2%–5% of the home price: this includes lender fees, title/attorney fees, appraisal, prepaid insurance & taxes, etc.
For a $600,000 home, closing costs alone could be roughly:
-
$12,000+
Other Upfront Costs
-
Earnest money deposit: ~1–5% of price (credited toward down payment at closing)
-
Inspection/Appraisal fees: several hundred to a few thousand dollars total
-
Moving costs: ~$1,000–$5,000+ depending on size & distance
So on top of your down payment, plan to have **several thousand dollars reserved** for these.
🪙 4. Cash Reserves
Lenders may also want to see that you have some money left over after closing, typically a few months of mortgage payments, sitting in savings.
🧠 Quick Savings Checklist
To comfortably buy a home in MA, plan to save for:
✔️ Down payment: 3%–20%+ of home price
✔️ Closing costs: 2%–5% of home price
✔️ Earnest money deposit
✔️ Inspection/appraisal fees
✔️ Moving costs
✔️ Cash reserves for post-closing stability
📌 Example “Cash to Close” Totals
For a $650,000 home:
-
Down payment (10%): $65,000
-
Closing costs (approx. 3%): ~$19,500
-
Other fees + reserves: $5,000–$10,000+
👉 Total needed at closing: ~$90,000–$100,000+
(Your own numbers will vary based on loan type, price, and negotiated costs.)
💡 Bottom Line
You can buy a home in Massachusetts with a relatively low down payment (as little as ~3–3.5%), but most buyers end up saving 10–20% of the purchase price plus another few thousand dollars for closing costs and fees to comfortably get to closing day.
