My front brakes feel spongy when I squeeze it. The brake handle almost touches the hand grip. Does this mean I need new brakes or that I may have a leak somewhere?

It means there is air in the brake line. If the fluid gets too low in the brake cylinder air gets pumped into the system when the brake is applied. A loose fitting or bad seal is usually why the fluid gets low. Fix the leak then add fluid and bleed the system of air. First bleed the master cylinder at the lever. There should be a bleeder valve on the cylinder. Put a clear rubber hose on the end of the bleeder valve. Run the hose into a container so the brake fluid doesn't get on paint or plastic parts. The fluid can mess up the finish. Now squeeze the brake lever several times in rapid succession then hold the lever in without releasing it. Open the bleeder valve slowly and fluid and air bubbles will come out of the valve. Close the valve BEFORE releasing the lever. Do the same thing multiple times until only fluid comes out of the valve. Do not let the cylinder run out of fluid while bleeding. If it does, you have to start all over again.
Now do the same procedure on the wheel caliper.
Understand that the master cylinder and / or the wheel caliper may need new seals. Please rate my answer. Thanks!

The brakes probably just need bleeding and fresh fluid.