If you’re looking to purchase a home in Massachusetts or Rhode Island, you want the process to go smoothly. Working with a trusted mortgage lender with experience in both states can help you navigate your journey to homeownership with greater ease.
BayCoast Mortgage is here and ready to help you.
As a respected mortgage lender in 11 states along the East Coast, including Massachusetts and Rhode Island, BayCoast Mortgage has the expertise to guide you every step of the way as you search for your Southern New England dream home. Whether you’re comparing mortgage programs for a home purchase in Massachusetts or Rhode Island, here’s what you should know before you buy.
Is It Cheaper to Buy a Home in Rhode Island vs. Massachusetts?
That’s a good question. Home prices in Rhode Island are generally less expensive than in Massachusetts, giving buyers more affordable options. A recent study by the Warren Group shows that in 2024, the median price for a single-family home in Massachusetts was $615,000 – well above the national median of $427,000. Rhode Island’s median price for a single-family home last year was slightly higher than the national average, standing at $475,000.
While the price tag is a big difference between both the Bay State and Ocean State real estate markets, there is another key difference buyers will want to know about – paperwork.
The Commonwealth of Massachusetts may involve slightly more documentation and regulations, especially at the town level, which can lengthen the home-buying timeline. So, if you’re looking for a quick transaction, you may want to keep that in mind.
What Tax and Insurance Costs Should You Expect?
There are other important differences to consider when making the decision to buy a home in Massachusetts or Rhode Island.
Property Taxes
Massachusetts generally has higher property tax rates than Rhode Island. For example, in 2024, the average property tax rate in Massachusetts hovered around 1.2 percent, while Rhode Island’s average was closer to 1.1 percent, but rates vary widely by town. Buyers should factor in local municipal taxes when calculating their monthly housing costs, especially in Massachusetts’ communities with additional assessments.
Title Insurance and Recording Fees
Massachusetts often has higher recording fees and requires both a mortgage and deed recording, which can add hundreds to closing costs. Rhode Island has lower title and recording fees on average, but still requires lender and owner title insurance policies.
How Do State Regulations and Legal Requirements Differ?
Attorney Requirements
Massachusetts requires an attorney to be present at closing. This can streamline legal compliance but may add a few hundred dollars in closing costs. Rhode Island allows for closings to occur without an attorney, though some lenders, including BayCoast Mortgage, may still recommend one for your protection.
Flood Insurance
Coastal homes in both states may require flood insurance, particularly in communities such as Somerset, Massachusetts, and Tiverton, Rhode Island. However, FEMA flood zone designations can vary slightly from state to state, which may impact your insurance premiums and approval timelines.
If you’re searching for a home in Massachusetts or Rhode Island, or relocating from one state to the other, it’s essential to work with a lender who understands the nuances of how buying a house differs in both states.
BayCoast Mortgage’s loan officers are licensed in both states and offer personalized guidance on everything from Rhode Island mortgage programs to Massachusetts closing timelines.
Whether you’re comparing towns or juggling multi-state transactions, the experts at BayCoast Mortgage are here to make your mortgage journey seamless.
Remember, it costs nothing to have a conversation with us, so if you have questions about the often-complex mortgage process, please feel free to reach out. We are always happy to help you!
