California has the highest average monthly mortgage in the country—West Virginia has the lowest (2024)

FAQs

What is the average monthly mortgage in California? ›

The U.S. state with the lowest average monthly mortgage: West Virginia. West Virginia has the lowest average monthly mortgage — the average payment is $961, according to doxo. Residents of the state also pay the lowest average monthly rent.

Virginia homeowners spend an average of $1,334 per month on a mortgage payment, $175 more than the national average. Home loan costs may differ, though, based on several factors, like home price and interest rate.

These states had the highest average mortgage balance per borrower as of the end of 2022, according to Experian: District of Columbia – $492,745. California – $422,909.

Monthly mortgage payments include not just principal and interest but also taxes and insurance. The typical mortgage payment nationwide is about $2,200 per month.

Data from the Council for Community and Economic Research (C2ER)'s 2022 Annual Cost of Living Index shows that the national average monthly mortgage payment is $1,768. This figure differs from the median monthly payment in the U.S., which is $1,532.

An interest-only mortgage is when you pay only the interest as your monthly payments for several years. These loans generally provide lower monthly payment amounts.

Historically, mortgage rates tend to be lowest during the winter months, particularly in December and January. However, rates can vary significantly from year to year, so it's essential to keep an eye on current real estate market conditions.

To afford a $400,000 home, assuming a 20% down payment and a 6.5% interest rate on a 30-year mortgage, you would need a gross monthly income of approximately $7,786.55. This assumes you have $1,000 in monthly debt.

How much should my mortgage be if I make $70,000 a year? ›

If you make $70K a year, you can likely afford a new home between $290,000 and $310,000*. That translates to a monthly house payment between $2,000 and $2,500, which includes your monthly mortgage payment, taxes, and home insurance.

A $3,500 per month mortgage in the United States, based on our calculations, will put you in an above-average price range in many cities, or let you at least get a foot in the door in high cost of living areas. That price point is $550,000.

A mortgage servicer may not make a first notice or filing for foreclosure until the borrower is more than 120 days delinquent. The 120-day period under the rules is designed to give borrowers time to learn about workout options and file an application for mortgage assistance.

What percentage of America is debt-free? According to that same Experian study, less than 25% of American households are debt-free. This figure may be small for a variety of reasons, particularly because of the high number of home mortgages and auto loans many Americans have.

The most common rule for housing payments states that you shouldn't spend more than 28% of your gross income on your housing payment, and this should account for every element of your home loan (e.g., principal, interest, taxes, and insurance).

Roughly 51% of homebuyers face monthly mortgage payments of $2,000 or more, up from 18% just two years ago. Not only that, but nearly a quarter of homebuyers have payments above $3,000 — up from 5% in 2021.

In Hawaii and California—the two states where average payments are above $3,000—households are spending 40% and 34%, respectively, of their average monthly income on housing. Most financial experts advise households not to spend more than 30% of their monthly income on housing.