How Much House Can I Really Afford? A Practical Guide for Massachusetts Buyers

One of the most common things we hear at The Charles King Group is:

“I’m nervous about how much house I can afford.”

If you’re feeling that way, you’re not alone.

Buying a home in Massachusetts — whether in Hingham, the South Shore, or Greater Boston — is likely one of the biggest financial decisions you’ll ever make. Between rising home prices, changing interest rates, property taxes, insurance, and everyday expenses, it’s completely normal to wonder:

• Am I stretching too far?

• Am I being too conservative?

• What’s the right number?

Let’s break it down clearly and practically.

Why So Many Buyers Feel Uncertain About Affordability

Home affordability feels overwhelming today for several reasons:

• Confusion between purchase price vs. monthly payment

• Interest rate fluctuations changing numbers quickly

• Property taxes and insurance in Massachusetts varying by town

• Fear of becoming “house poor”

• Competitive South Shore and Boston-area markets

• Pressure to move quickly when inventory is limited

Here’s the truth:

Affordability isn’t just about what a lender approves you for. It’s about what feels comfortable for your lifestyle.

What Lenders Say vs. What You Should Actually Spend

Most lenders use a guideline that your total housing costs should fall between 28%–36% of your gross monthly income (including principal, interest, taxes, and insurance).

But that formula doesn’t consider:

• Childcare

• Student loans

• Travel plans

• Retirement savings

• Investments

• Emergency funds

• Lifestyle preferences

• Renovation goals

Just because you qualify for a certain number doesn’t mean you should spend that number.

In high-cost markets like Hingham, Cohasset, Scituate, Boston, and across the South Shore, this distinction is especially important.

Start With Your Own Budget — Not the Bank’s

Before touring homes, ask yourself:

• What monthly payment truly feels comfortable?

• How much do I want left over for savings?

• Am I planning any major life changes?

• How stable is my income?

• Do I want flexibility for upgrades or renovations?

• Would a slightly lower price point reduce stress?

A home should create stability — not financial pressure.

Use Our Massachusetts Home Affordability Calculator

To remove the guesswork, we created a simple, easy-to-use tool.

👉 Home Affordability Calculator:

With just a few details about your income, debt, and down payment, you can instantly see:

• Estimated purchase price range

• Projected monthly payment

• How interest rates affect affordability

• What happens if you adjust your down payment

• How different scenarios change your comfort level

This is a smart first step before speaking with a lender.

How Interest Rates Impact What You Can Afford

In Massachusetts, even a 0.5% shift in interest rates can change affordability significantly.

Higher rates:

• Lower purchasing power

• Increase monthly payments

• May push buyers into different price brackets

Lower rates:

• Increase borrowing power

• Improve long-term flexibility

• Create refinancing opportunities later

That’s why scenario planning matters.

Comfort > Maximum Approval

At The Charles King Group, we talk about this every day with buyers across the South Shore and Boston area:

Affordability is personal.

Some buyers prefer to:

• Maximize purchasing power

• Invest aggressively

• Focus on long-term appreciation

Others prefer to:

• Keep payments conservative

• Maintain strong liquidity

• Reduce monthly stress

There is no universal “right” answer.

Only what aligns with your financial goals and lifestyle.

You Don’t Have to Figure This Out Alone

If you’re feeling nervous about how much house you can afford, that’s actually a good sign.

It means you’re thinking strategically.

We help buyers every day:

• Connect with trusted Massachusetts lenders

• Compare payment scenarios

• Understand property tax differences by town

• Evaluate realistic budget ranges

• Identify creative options that fit long-term goals

Buying a home in Hingham, the South Shore, or Greater Boston should feel exciting — not overwhelming.

Ready to See Your Numbers?

Start here:

👉 https://www.charleskingre.com/affordability-calculator

Your future home should fit your life — not strain it.

If you’d like to walk through your personal scenario, reach out anytime. We’re happy to help.

Frequently Asked Questions About Home Affordability

How much house can I afford in Massachusetts?

Most lenders recommend keeping housing costs between 28–36% of gross income. However, true affordability depends on debt, lifestyle, savings goals, and comfort level.

Does getting pre-approved mean I should spend that much?

Not necessarily. Pre-approval shows what you qualify for — not what’s financially comfortable long term.

How do interest rates affect what I can afford?

Even small rate changes can significantly impact monthly payments and purchasing power. Running multiple scenarios helps clarify options.

What costs should I consider beyond the mortgage?

Property taxes, homeowner’s insurance, utilities, maintenance, HOA fees (if applicable), and future upgrades.

Is it better to put more money down?

A larger down payment can reduce monthly payments and interest costs, but maintaining liquidity is also important. It depends on your financial strategy.