February 29, 20244-minute read
Author: Katie Ziraldo
Share:
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.
See What You Qualify For
Congratulations! Based on the information you have provided, you are eligible to continue your home loan process online with Rocket Mortgage.
If a sign-in page does not automatically pop up in a new tab, click here
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. 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-By-State Average Mortgage Payments
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:
Take the first step toward the right mortgage.
Apply online for expert recommendations with real interest rates and payments.
I Want To Buy A Home I’d Like To Refinance
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.
