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What Is The Average Mortgage Payment?

February 15, 2024 4-minute read

Author: Katie Ziraldo

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From down payments to mortgage payments, private mortgage insurance and homeowners insurance, there’s a lot to consider when you’re buying a home. Upfront costs are easy enough to calculate, but one important factor to consider is whether you’ll realistically be able to afford your mortgage payment. You’ll want to make sure you’re ready to buy a house based on your monthly income.

Of course, the specific amount of your mortgage payment will depend on many things, including the size of your down payment, your mortgage rate and the size and duration of the loan. But examining the averages in these areas can help prospective home buyers evaluate their budget to avoid financial headaches down the road.

Average Monthly Mortgage Payment In The U.S.

According to the National Association of REALTORS® (NAR) in 2022 the average monthly mortgage payment was $2,317. In comparison, the median mortgage payment for Q2 of 2023 was $2,051 for a mortgage on a single-family home. In general, when discussing housing prices, real estate professionals will look at the median home price instead of the average home price. We’ll discuss a bit more about the difference between mean and median home prices below.

According to the NAR, the national median home price for a single-family home was $402,600 for the second quarter of 2023. Meanwhile, the median down payment is 13% of the purchase price. This would bring the median loan size to approximately $350,262. Note that this does not take into account any closing costs, homeowners association (HOA) fees, homeowners insurance or any outside expenses.

If you want to know what your mortgage payment might look like, try a mortgage calculator to estimate your total housing costs.

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Understanding Median Vs. Average Mortgage Payment

When looking at typical mortgage payments, it’s important to understand the difference between the median and the average. Although both numbers can paint a picture of what you can expect, these terms are different and can therefore lead to very different results.

An average is the mean of a set of numbers. It’s calculated by taking the total of those numbers divided by the amount of numbers in the set. The median is the central number in the range – meaning half the numbers are lower than the median and half are higher.

When looking at mortgages, medians tend to be more accurate as averages can be easily impacted by extremely high or low rates. That means outlying expensive or inexpensive properties can have a bigger effect on an average and may not give an accurate view of the overall market.

This is why sources like the U.S. Census Bureau or the NAR report on median payments. Median mortgage costs help represent a broader range of homeowners across the country.

State-By-State Average Mortgage Payments

Another factor to strongly examine when looking at average and median mortgage payments is location. This is because both home prices and mortgage interest rates vary widely between states.

In the chart below, we’ll compare median monthly home payments to the average monthly household income across all 50 states based on the most recent data from the U.S. Census Bureau.

State

Median Monthly Payment

Average Monthly Household Income

Alabama

$1,871

$6,327

Alaska

$2,510

$8,377

Arizona

$2,397

$7,765

Arkansas

$1,895

$6,094

California

$3,399

$10,079

Colorado

$2,878

$9,221

Connecticut

$2,295

$10,001

Delaware

$2,176

$7,969

Florida

$2,275

$7,464

Georgia

$2,209

$7,702

Hawaii

$3,696

$9,313

Idaho

$2,259

$7,496

Illinois

$2,165

$8,323

Indiana

$1,771

$6,887

Iowa

$1,768

$7,208

Kansas

$1,875

$7,215

Kentucky

$1,711

$6,353

Louisiana

$1,839

$6,299

Maine

$2,142

$7,313

Maryland

$2,546

$9,997

Massachusetts

$3,021

$10,399

Michigan

$1,742

$7,174

Minnesota

$1,990

$8,609

Mississippi

$1,757

$5,671

Missouri

$1,792

$7,077

Montana

$2,453

$7,257

Nebraska

$2,506

$7,434

Nevada

$2,506

$7,497

New Hampshire

$2,353

$9,326

New Jersey

$2,708

$10,413

New Mexico

$2,053

$6,416

New York

$2,423

$9,144

North Carolina

$2,212

$7,234

North Dakota

$1,913

$7,222

Ohio

$1,759

$7,048

Oklahoma

$1,788

$6,286

Oregon

$2,540

$7,972

Pennsylvania

$2,000

$7,820

Rhode Island

$2,326

$8,262

South Carolina

$2,021

$6,798

South Dakota

$2,274

$7,183

Tennessee

$2,134

$6,981

Texas

$2,195

$7,806

Utah

$2,891

$8,756

Vermont

$2,127

$7,875

Virginia

$2,513

$9,274

Washington

$2,878

$9,696

West Virginia

$1,700

$6,025

Wisconsin

$1,836

$7,359

Wyoming

$2,011

$7,243

Costs That Impact A Mortgage Payment

New homeowners may not realize each of the expenses that go into their mortgage payments. Monthly payments include:

  • Principal: The principal is the amount of money you borrow when you initially take out your mortgage. This can be calculated by subtracting your down payment from the home’s selling price.
  • Interest: This makes up the second major part of your monthly house payment and serves as the money you pay your mortgage lender in exchange for their giving you the loan. Interest rates are typically determined using an annual percentage rate (APR).
  • Property taxes: The taxes you pay on your property go to your local government to fund road repair, public schools, fire departments and more. New homeowners may be surprised to learn property taxes can be one of the most expensive parts of the mortgage payments.
  • Homeowners insurance: Although it’s not legally required, most mortgage lenders will not provide a loan without homeowners insurance. This covers damage from home fires, break-ins and other hazards.
  • Homeowners association (HOA) fees: If your home is in an HOA community, there are certain rules, regulations and fees that come with being a member. This is most common with townhouses, multi-unit apartment buildings and condominiums. The fees you pay for belonging to an HOA may fund trash pickup, landscaping, security, maintenance and amenities on the property.

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The Bottom Line: Medians And Averages Are Just A Guide

Information is power when you’re considering making a substantial purchase like a new home. It’s important to take advantage of all the information available to determine when you’re financially ready to buy a house. But remember that these medians and averages are just a guide, and the specific details of your loan will depend on the home price, the size of your down payment, the number of extra payments you make and your interest rates.

Ready to find out the best mortgage options for your new home? Apply for a mortgage online or talk to one of our Home Loan Experts by calling (888) 286-8071.

Katie Ziraldo Headshot

Katie Ziraldo

Katie Ziraldo is a financial writer and data journalist focused on creating accurate, accessible and educational content for future generations of home buyers. Her portfolio of work also includes The Detroit Free Press and The Huffington Post.