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. Methodology: How we got our average number

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. This means your monthly mortgage payment should be less than or equal to $1,633. If you earn $70,000 per year, your gross monthly income is $5,833. Average mortgage payment frequently asked questionsįollowing the 28% rule, you shouldn't spend more than 28% of your gross monthly income on your mortgage. Utilities like internet, garbage removal, and electricity will also add to your monthly costs of homeownership. Interest rates vary based on your credit score, where you live, and the type of loan you're taking out.Īnother 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.

Your mortgage's interest rate: The amount of interest you pay on your mortgage will influence the amount you pay each month.

The higher your down payment, the lower your mortgage will be each month. 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 size of your down payment: Like some other types of loans, a mortgage requires a down payment.Here's how those two factors can get you a higher or lower monthly payment: Your monthly mortgage payment will also be impacted by how much money you borrow, and what your mortgage lender charges you for that money. The average cost of homeowners insurance is about $1,400 per year. Home insurance: To keep your home covered, you'll need to purchase a homeowner's insurance policy.This cost is included in your monthly payment if your mortgage includes escrow. Property taxes: You'll pay tax on your home to your state and local government, if necessary.

If your mortgage includes an escrow account, you'll pay for two costs each month in your monthly mortgage payment: This is because homeowners typically pay for more than just the loan's principal and interest in their monthly payment. In the Census Bureau's American Community Survey's data, the monthly mortgage payment includes things like insurance and taxes. Cities are listed by size.Ĭosts included in a monthly mortgage payment Here's how the most populous cities stack up in monthly living costs according to Census Bureau data. 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.īut, 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. This figure includes a mortgage payment, as well as homeowners insurance costs, property taxes, utilities, and HOA fees where necessary.Įspecially in coastal cities where space is at a premium, a monthly home payment can be much higher than the national average or median payment. Additionally, mortgage rates vary by state.ĭata from the 2022 American Community Survey shows that homeowners paid a median amount of $1,775 per month. 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. That cost includes not only the monthly mortgage payment, but also other necessary costs like homeowners insurance, HOA fees, and property taxes.īelow, we've broken out median data by state, city, and year. 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. A better measure of this is the median, which represents the middle number in a data set. This means it's often not the most accurate depiction of what the typical US homeowner actually pays. However, averages can be skewed by payments that are atypically low or high. You can see the full methodology at the end of this post. 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.

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