The average monthly mortgage payment by state, city, and year

The average monthly mortgage payment by state, city, and year

The average monthly mortgage payment depends on where you live in the US.

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The average mortgage payment is $1,159 on 30-year fixed mortgage, and $1,747 on a 15-year fixed mortgage.However, a more accurate measure of what the typical American spends on their mortgage each month would be a median: $1,609 in 2019, according to the US Census Bureau.When buying a home, the mortgage isn’t the only thing you’ll pay for. Monthly costs also include insurance, property taxes, utilities, and HOA fees where applicable. Sign up for Personal Finance Insider’s email newsletter here » 

According to Insider’s calculations using data from Zillow, the average mortgage payment is $1,159 on 30-year fixed mortgage, and $1,747 on a 15-year fixed mortgage. You can see the full methodology at the end of this post.

However, an average, which can be skewed by payments that are atypically low or high, probably isn’t the most accurate depiction of what the typical US 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 US is $1,609 per month, according to the most recent data from the Census Bureau’s 2019 American Community Survey. That cost includes not only the monthly mortgage payment, but also other necessary costs like insurance, HOA fees, and property taxes.

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

Mortgage payments by state

While some states have relatively low home values, homes in states like California, Hawaii, and New Jersey have much higher home costs, meaning people pay more for their mortgage each month. Additionally, mortgage interest rates vary by state. 

Data from the 2019 American Community Survey shows that homeowners paid a median amount of $1,609 per month. This figure includes a mortgage payment, as well as insurance costs, property taxes, utilities, and HOA fees where necessary. 

Here’s how all 50 US states stack up:

StateMedian monthly home payment Alabama$1,172Alaska$1,882Arizona$1,457Arkansas$1,094California$2,421Colorado$1,845Connecticut$2,087Delaware$1,557District of Columbia$2,684Florida$1,530Georgia$1,450Hawaii$2,472Idaho$1,306Illinois$1,688Indiana$1,146Iowa$1,266Kansas$1,387Kentucky$1,179Louisiana$1,279Maine$1,387Maryland$2,015Massachusetts$2,276Michigan$1,285Minnesota$1,595Mississippi$1,149Missouri$1,271Montana$1,466Nebraska$1,427Nevada$1,589New Hampshire$1,963New Jersey$2,413New Mexico$1,269New York$2,156North Carolina$1,318North Dakota$1,430Ohio$1,250Oklahoma$1,231Oregon$1,750Pennsylvania$1,477Rhode Island$1,837South Carolina$1,250South Dakota$1,371Tennessee$1,264Texas$1,675Utah$1,605Vermont$1,606Virginia$1,792Washington$1,951West Virginia$1,052Wisconsin$1,412Wyoming$1,417

Mortgage payments by city

Especially in coastal cities where space is at a premium, a monthly home payment can be much higher than the national average or median payment. According to US Census Bureau data from the 2019 American Community Survey, the median monthly home payment (including utilities, insurance, and HOA fees) was more than $2,600 per month in Los Angeles, and over $2,800 per month in the New York City area.

But, not all metro areas are as expensive — in Phoenix, Arizona, the median home payment is about $1,500 per month, and about $1,800 per month in Dallas. Here’s how the most populated metro areas stack up in monthly living costs according to Census Bureau data. Cities are listed by size. 

CityMedian monthly home paymentLos Angeles, California$2,659Chicago, Illinois$1,882Houston, Texas$1,815Phoenix, Arizona$1,540Miami, Florida$1,874New York City, New York$2,807Dallas, TX$1,870Riverside County, California$1,969

Mortgage payments by year

The median cost of homeownership has risen year over year since 2010. However, the median monthly home payment has only risen by $113 per month from 2010 to 2019.

Here’s how the costs have changed over the past eight years, according to American Community Survey data.

YearMedian US monthly home payment2010$1,4962011$1,4862012 $1,4602013$1,4362014$1,4542015$1,4772016$1,4862017$1,5132018$1,5662019$1,609

Costs included in a monthly mortgage payment

In the Census Bureau’s American Community Survey’s data, the monthly mortgage payment includes things like insurance and taxes. In part, it’s because that’s how mortgages actually work — oftentimes, you pay for more than just the loan’s principal and interest in your monthly payment. 

If your mortgage includes an escrow account, you’ll pay for two costs each month in your monthly mortgage payment:

Property taxes: You’ll pay tax on your home to your state and local government, if necessary. This cost is included in your monthly payment if your mortgage includes escrow.Home insurance: To keep your home covered, you’ll need to purchase a homeowner’s insurance policy. The average cost of homeowners insurance is about $1,200 per year.

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

The size of your down payment: Like many other types of loans, a mortgage requires a down payment. If you don’t have a 20% down payment for the house you’re purchasing, 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’s interest rates: The amount of interest you pay on your mortgage will influence the amount you pay each month. Interest rates vary based on your credit score, where you live, and the type of loan you’re taking out.

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

Methodology: How we got our average number

We took the current median home sale price of a new home in the United States as reported by Zillow, then assumed a standard 20% down payment and took into account current 15 and 30-year fixed interest rates as reported by the Federal Reserve to get the average monthly mortgage payment.

Read the original article on Business Insider

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