What is the average U.S. mortgage payment?
Use these numbers to examine your house-buying budget and how much you can afford
If you are looking to buy a new house, odds are you’ll have to take out a mortgage to finance the purchase. With a mortgage, you make a payment each month to the lender or servicer that covers the principal balance and other costs. In the second quarter of 2023, the median sales price of homes sold in the U.S. was $416,100, according to the Federal Reserve Bank of St. Louis. The average rate on a 30-year fixed-rate mortgage as of August 24, 2023, was 7.23%, according to Freddie Mac.
Key insights:
- Mortgage payments are made up of your loan principal and interest, taxes and insurance.
- The state that you live in will affect your mortgage payments, as real estate values and fees vary by state.
- The type of mortgage you have, including the loan type and term, and your credit profile affect how much you pay.
What impacts a monthly mortgage payment?
There are multiple variables that affect your monthly mortgage payment. These factors can include potential taxes and insurance payments that came with your loan, the frequency of your mortgage payments, the type of mortgage you get, the size of your down payment, your interest rate and much more.
The four main components that make up a mortgage payment are principal loan balance, interest, taxes and insurance.
The main components of a mortgage payment are referred to as PITI — principal, interest, taxes and insurance. Property taxes vary by jurisdiction and will fluctuate based on the value of your home. If the value of your home appreciates, the property taxes you have to pay may also increase.
Homeowners insurance may fluctuate, depending on whether or not you choose to adjust coverage(s). In addition, PMI — private mortgage insurance — is required on a conventional loan if your down payment is less than 20%. This is required to protect the mortgage lender from a default on the loan.
If you get a fixed-rate mortgage, your interest rate will not change — unless you refinance. However, if you get an adjustable-rate mortgage (ARM), your interest rate will change regularly after a set number of years has elapsed. If interest rates go down, your mortgage rate will also decrease. However, the opposite is also true. The type of home loan — conventional, VA, USDA, FHA — will also impact the details of your mortgage payment.
“A lower down payment or higher interest rate may result in a higher monthly payment. Depending on the type of loan, borrowers may also have to pay property taxes and homeowners insurance as part of their monthly mortgage payment,” explained Malcolm-Wiley Floyd, co-founder and CEO of Stairs Financial.
» MORE: FHA vs. VA loans
Median vs. average mortgage payment
The median monthly mortgage payment is different from the average monthly mortgage payment because of the different way each is calculated. The median value is the midpoint in a data set, while the average is the sum of a dataset divided by the total number of values.
For example, if five values are collected with values of $1,000, $1,500, $1,650, $3,000, and $5,000, the median value is $1,650 (the middle number when they are put in order from lowest to highest), whereas the average value is $2,430 (the sum of all values divided by five).
The average U.S. mortgage payment
It is difficult to calculate a precise average mortgage payment, as there is no single authoritative source that provides that information. However, data from the U.S. Census Bureau American Community Survey shows that in 2021, the median U.S. mortgage payment was $1,672.
Average mortgage payment by state
Below is a table with the most recent median monthly mortgage payments by state. The data comes from the latest U.S. Census Bureau’s 2021 American Community Survey.
| State | Median monthly mortgage payment (2021) |
|---|---|
| Alabama | $1,223 |
| Alaska | $1,926 |
| Arizona | $1,544 |
| Arkansas | $1,147 |
| California | $2,523 |
| Colorado | $1,962 |
| Connecticut | $2,083 |
| Delaware | $1,585 |
| Washington, D.C. | $2,639 |
| Florida | $1,616 |
| Georgia | $1,501 |
| Hawaii | $2,584 |
| Idaho | $1,425 |
| Illinois | $1,717 |
| Indiana | $1,195 |
| Iowa | $1,328 |
| Kansas | $1,446 |
| Kentucky | $1,227 |
| Louisiana | $1,349 |
| Maine | $1,464 |
| Maryland | $2,013 |
| Massachusetts | $2,323 |
| Michigan | $1,348 |
| Minnesota | $1,667 |
| Mississippi | $1,200 |
| Missouri | $1,316 |
| Montana | $1,558 |
| Nebraska | $1,491 |
| Nevada | $1,625 |
| New Hampshire | $2,004 |
| New Jersey | $2,458 |
| New Mexico | $1,354 |
| New York | $2,199 |
| North Carolina | $1,387 |
| North Dakota | $1,488 |
| Ohio | $1,293 |
| Oklahoma | $1,295 |
| Oregon | $1,835 |
| Pennsylvania | $1,505 |
| Rhode Island | $1,932 |
| South Carolina | $1,289 |
| South Dakota | $1,415 |
| Tennessee | $1,333 |
| Texas | $1,765 |
| Utah | $1,671 |
| Vermont | $1,664 |
| Virginia | $1,818 |
| Washington | $2,110 |
| West Virginia | $1,071 |
| Wisconsin | $1,464 |
| Wyoming | $1,490 |
FAQ
Will my mortgage amount ever change if I have a fixed rate?
With a fixed-rate mortgage, your principal and interest payments won’t ever change. However, taxes and insurance may change, impacting your monthly mortgage payment.
What is a good mortgage average rate?
It is difficult to say what a good mortgage average rate is. Mortgage rates vary by factors such as location, loan type, loan term and the applicant. The best way to get a good mortgage rate is to compare offers from multiple lenders and choose the one with the lowest annual percentage rate (APR).
What are the current mortgage rates?
As of publishing, the average rate on a 30-year fixed-rate mortgage is 7.23%, according to Freddie Mac. On a 15-year fixed-rate mortgage, the average rate is 6.55%.
Bottom line
There is no correct answer for what the right mortgage payment is, as that will depend on personal factors. The type of loan, the loan duration and the size of the down payment are all factors that will impact your mortgage payment. To get the lowest mortgage rate for your purchase or refinance, shop with various lenders, paying particular attention to the APR, which is the total cost of borrowing.
- Sources
- ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. To learn more about the content on our site, visit our FAQ page. Specific sources for this article include:
- Federal Reserve Bank of St. Louis, “Median Sales Price of Houses Sold for the United States.” Accessed August 25, 2023.
- U.S. Census Bureau, “Census Bureau Data.” Accessed August 25, 2023.
- Freddie Mac, “Mortgage Rates.” Accessed August 25, 2023.
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