Table of contents
- Median mortgage payment
- Historical median mortgage payments
- What factors influence mortgage payments?
- What is included in a mortgage payments?
- Which states have the highest median payment?
- Lowest median payment states?
- Average mortgage payment
Median Mortgage Payment in the US
If you were to purchase the median priced home in the US which is $416,700 — you would have a mortgage payment is $2,349.20. This mortgage payment is based on the average 30-year fixed mortgage rate in the US for the month of August which is 6.50%. As well as a 10% down payment over a 30-year amortization period.
It is important to also consider other costs that are not included in the mortgage payments above such as insurance, property tax, HOA fees and utilities. While the mortgage payment is a large portion of the monthly housing costs you will incurr it certainly is not the only one.
Historical Median Mortgage Payments
The historical median mortgage payment peaked in June 2024 with a mortgage payment of $2,510 on a median home price of $426,900 at a 30-year fixed mortgage rate of 6.92%.
For this home to be considered affordable based on the 28/36 mortgage affordability rule — it would take household income in excess of $110K — however, it is important to perform this calculation to see how much mortgage payment you can afford.
| Date | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| January | $1,111 | $1,418 | $1,977 | $2,168 |
| February | $1,148 | $1,513 | $1,999 | $2,229 |
| March | $1,259 | $1,657 | $2,126 | $2,291 |
| April | $1,303 | $1,896 | $2,157 | $2,414 |
| May | $1,320 | $2,012 | $2,216 | $2,500 |
| June | $1,369 | $2,105 | $2,363 | $2,510 |
| July | $1,357 | $2,007 | $2,373 | $2,467 |
| August | $1,341 | $1,929 | $2,430 | $2,349 |
| September | $1,327 | $2,077 | $2,383 | N/A |
| October | $1,358 | $2,223 | $2,466 | N/A |
| November | $1,368 | $2,166 | $2,399 | N/A |
| December | $1,375 | $2,038 | $2,227 | N/A |
What factors influence mortgage payments?
There are many factors that should be considered and directly influence your mortgage payments.
Mortgage Rates
The mortgage interest rate you are able to secure plays a large role in how much your monthly mortgage payment will be. Historical mortgage rates have reached levels above 10% — which can add thousands onto a mortgage payment compared to one at a lower interest rate.
A mortgage calculator is an important tool when determining how much house you can afford. You will be able to get a good idea of what your monthly mortgage payment will be considering various mortgage rates, home prices and amortization terms.
What is included in a mortgage payment?
Mortgage payments are made up of four components which can be described by the acronym PITI — P - Principal; I - Interest; T - Taxes; and I - Insurance.
- Principal: This would be the total value of the loan that you borrow for your mortgage. It can be calculated as the home price less any down payment.
- Interest: The amount that is charged on the borrowed mortgage.
- Taxes: Property taxes on your home which is based on the value of your home.
- Insurance: This refers to private mortgage insurance (PMI) as well as any other homeowner insurance.
Which states have the highest median payment?
California: $4,617
The state with the most expensive mortgage payment is California with a payment of $4,617 on the median home price of $818,900.
Hawaii: $4,418
Hawaii is the state with the second most expensive mortgage payment at $4,418 on the median home price of $783,700.
Lowest median payment states?
Iowa: $1,358
The least expensive state in the United States for home price is Iowa with an median home price of $240,800 — and a mortgage payment of $1,358 on the median priced home.
West Virginia: $1,413
West Virginia would require a mortgage payment of $1,413 on the median home price of $250,700 which makes it the second cheapest state.
What is the average mortgage payment?
The average home price in the US is $361,282 according to Zillow. Using the 30-year fixed mortgage rate of 6.50% as well as a 10% down payment, the average monthly mortgage payment is $2,036.77 — $312.43 less than the mortgage payment on the median priced home.
Source: NAR; Fred; Redfin