Average mortgage payment by state, city and year

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  • The average mortgage payment is $ 1,275 for a 30-year fixed mortgage and $ 1,751 for a 15-year fixed mortgage.
  • However, a more accurate measure of what the typical American spends each month on their mortgage would be a median: $ 1,556 in 2018, according to the US Census Bureau.
  • The typical payment varies widely between states and cities, as home values ​​and property taxes vary widely. The costs have also increased over time.
  • When to buy a house, the mortgage is not the only thing you will pay. Monthly costs also include insurance, property taxes, utilities, and HOA fees, if applicable.
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Based on Business Insider US calculations using 2018 data from the Bureau of Labor Statistics, the average mortgage payment is $ 1,275 for a 30-year fixed mortgage and $ 1,751 for a 15-year fixed mortgage. You can see the full methodology at the end of this article.

However, an average, which can be skewed by unusually low or high payments, is probably not the most accurate representation of what the typical American homeowner actually pays. A better measure of this is the median, which represents the middle number in a data set.

The median monthly cost of homeownership in the United States is $ 1,556 per month, according to the most recent data from the United States. Census Bureau U.S. Community Survey 2018. This cost includes not only the monthly mortgage payment, but also other necessary costs like insurance, HOA fees, and property taxes.

Below, we’ve broken down the median data by state, city, and year.

Mortgage payments by state

While some states have relatively low real estate values, homes in states like California, Hawaii, and New Jersey have much higher house costs, which means people are paying more for their mortgage each month. Additionally, mortgage interest rate vary by state.

Data from the 2018 American Community Survey shows that homeowners paid a median amount of $ 1,556 per month. This figure includes a mortgage payment, as well as insurance costs, property taxes, utilities and HOA fees if necessary.

Here’s how the 50 U.S. states rank:

Mortgage payments by city

Especially in coastal cities where space is limited, a monthly payment for housing can be much higher than the national average or the median payment. According to US Census Bureau data from the 2018 American Community Survey, the median monthly housing payment (including utilities, insurance, and HOA fees) was over $ 2,500 per month in Los Angeles and over $ 2,700 per month in the New York area.

But not all metropolitan areas are this expensive – in Phoenix, Arizona, the median home payment is about $ 1,500 per month and about $ 1,700 per month in Dallas. Here’s how the most populous metropolitan areas compare to the monthly cost of living according to Census Bureau data. Cities are sorted by size.

Mortgage payments per year

The median cost of homeownership has increased year over year since 2010. Between 2018 and 2010, the median selling price of a home increased by $ 56,000. However, the median monthly home payment only increased by $ 70 per month.

Here’s how costs have evolved over the past eight years, according to American community survey The data.

Fees included in a monthly mortgage payment

In the Census Bureau American Community Survey data, the monthly mortgage payment includes things like insurance and taxes. Part of that is because that’s how mortgages work: often times, you pay more than the loan principal and the interest on your monthly payment.

If your mortgage includes a escrow account, you’ll pay two fees each month in your monthly mortgage payment:

  • Property taxes: You will pay taxes on your home to your state and local government if necessary. This cost is included in your monthly payment if your mortgage includes an escrow.
  • Home Insurance: To keep your home covered, you will need to purchase a home insurance policy. the average cost of home insurance is about $ 1,200 per year.

In addition, mortgage payments can also change based on several factors. Two different people could even face very different costs of owning the same house. There are two big factors that change your monthly payment:

  • The size of your deposit: Like many other types of loans, a mortgage requires a down payment. If you don’t have 20% deposit for the home you buy, you’ll add to the cost of your monthly mortgage payment with private mortgage insurance, or PMI. The higher your down payment, the lower your mortgage will be each month.
  • Your mortgage interest rate: The amount of interest you pay on your mortgage will influence how much you pay each month. Interest rates vary depending on your credit score, where you live and the type of loan you take out.

Another monthly cost to consider should be how much you will need to save for repairs. In general, the older your home, the more you need to keep on hand for repairs. Utilities like the internet, garbage removal, and electricity will also increase your monthly homeownership costs.

Methodology: How we got our average number

We took the current median selling price of a new home in the US as reported by Zillow, then assumed a standard 20% down payment and factored in the current 15 and 30 year fixed interest rates. as reported by the

Federal Reserve
to get the average monthly mortgage payment.

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