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According to Insider’s calculations using data from the US Census Bureau, the Department of Housing and Urban Development, Freddie Mac, and the National Association of Realtors, the average mortgage payment is $2,883 on a 30-year fixed mortgage, and $3,759 on a 15-year fixed mortgage. You can see the full methodology at the end of this post.
However, averages can be skewed by payments that are atypically low or high. This means it’s often not 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 $1,775 per month, according to the most recent data from the Census Bureau’s 2022 American Community Survey. That cost includes not only the monthly mortgage payment, but also other necessary costs like homeowners 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 rates vary by state.
Data from the 2022 American Community Survey shows that homeowners paid a median amount of $1,775 per month. This figure includes a mortgage payment, as well as homeowners insurance costs, property taxes, utilities, and HOA fees where necessary.
Here’s how all 50 US states stack up:
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 2022 American Community Survey, the median monthly home payment (including utilities, insurance, and HOA fees) was more than $3,200 per month in Los Angeles, and nearly $3,000 per month in New York City.
But, not all cities are as expensive — in Phoenix, Arizona, the median home payment is $1,642 per month, and it’s less than $1,500 per month in Philadelphia. Here’s how the most populous cities stack up in monthly living costs according to Census Bureau data. Cities are listed by size.
Mortgage payments by year
The median cost of homeownership has risen year over year since 2010. The median monthly home payment has increased by nearly $280 per month from 2010 to 2022.
Here’s how the costs have changed over the past eight years, according to American Community Survey data.
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. This is because homeowners typically pay for more than just the loan’s principal and interest in their 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 $1,400 per year.
Your monthly mortgage payment will also be impacted by how much money you borrow, and what your mortgage lender charges you for that money. Here’s how those two factors can get you a higher or lower monthly payment:
- The size of your down payment: Like some 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 rate: 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.
Average mortgage payment frequently asked questions
According to Insider calculations based on the latest data, the average borrower getting a mortgage in 2023 will have a monthly payment around $2,883 if they’re getting a 30-year fixed-rate mortgage, and $3,759 on a 15-year fixed-rate mortgage.
A $2,000 mortgage is below the average monthly payment but above the median monthly payment in the US. Whether it’s high depends on what you can afford. If you can pay $2,000 each month and also comfortably afford other necessities and financial goals, then this might not be too expensive of a mortgage for you. But everyone’s budget is different.
Most major forecasts expect mortgage rates to fall throughout 2024. We may even see rates drop near 6% or lower by the end of the year.
Following the 28% rule, you shouldn’t spend more than 28% of your gross monthly income on your mortgage. If you earn $70,000 per year, your gross monthly income is $5,833. This means your monthly mortgage payment should be less than or equal to $1,633. How much house you can afford at $70,000 a year depends on your credit profile, how much you have for a down payment, where interest rates are, and how much your taxes and insurance cost; at a 6% rate with a monthly tax and insurance payment of $400, you might be able to take out a mortgage up to $200,000.
Methodology: How we got our average number
To determine how much the average borrower will pay for their mortgage each month, we used the average home sales price according to data from the Census Bureau and the Department of Housing and Urban Development. In Q3 of 2023, the average price was $513,400. We then took the median down payment of 14% (as reported by the National Association of Realtors) to determine an average loan size. Average mortgage rates for December 2023 according to Freddie Mac data was also used. This average estimate doesn’t include taxes and insurance, since these costs vary widely.
