Insurance and property taxes on a mortgage payment for a downtown condo?

Boston Condos for Sale and Apartments for Rent

Insurance and property taxes on a mortgage payment for a downtown condo?

As of March 2026, property taxes and insurance account for approximately 17% to 22% of a typical monthly mortgage payment for a downtown Boston condo.

Boston’s higher property values and specific tax residential exemptions often offset the impact of the city’s double-digit tax rate hikes.

Monthly Cost Breakdown (2026 Estimates)

For a median-priced downtown condo of $1.25 million:

Property Taxes: Approximately $926/month.
- The residential tax rate is $12.40 per $1,000 of value for FY2026.
- Many owner-occupants qualify for a residential exemption, which can save up to $4,353.74 annually.
Condo Insurance (HO-6): Approximately $78/month.
- The average annual rate for Boston is $940.
- Costs remain significantly lower than single-family home insurance because the master policy covers the building exterior.
Principal & Interest: Approximately $4,414/month.
- Based on a 30-year fixed rate of 6.08% (current Massachusetts average) with 20% down.

Key Drivers in 2026

Tax Spikes: Residential property taxes in Boston saw a 13% increase in 2026, largely due to declining commercial property values shifting the tax burden to homeowners.
National Trends: Nationwide, taxes and insurance now account for 21% of monthly payments, a significant rise from previous years as insurance premiums continue to surge.
Insurance Resilience: While homeowners insurance is rising, condo (HO-6) policies in Massachusetts remain relatively affordable, averaging $669–$716 annually statewide, though downtown Boston rates are typically higher due to urban density.

Would you like to calculate the exact payment for a specific purchase price or see how the residential exemption affects your monthly budget? Contact Ford Realty Inc at realtyford@yahoo.com