According to the latest American Housing Survey from the U.S. Census Bureau, U.S. homeowners' mean or average monthly mortgage payment is $1,487. According to the Census Bureau, the average monthly mortgage payment in the United States is $1,200. This is slightly higher than the previous study, which found that the median monthly payment was $1,100.
What Does Average Indicate?The U.S. Census Bureau makes reports of both the mean and median payment. The average is the same as the mean. The median is the value in a set of numbers that is in the middle. It divides the lower and upper halves of the set's values. Finding the median value rather than the average value can be more useful when calculating a typical monthly mortgage payment. Extremely high or low values can skewed averages. For a wide range of homeowners, the median gives a better idea of where the middle is. National averages: According to data from the 2020 National Association of REALTORS Profile of Home Buyers and Sellers, the national median home price is $272,500. We can calculate a loan size of $245,250 if we assume a down payment of 10% of the purchase price. Using current mortgage loan rates, the following average monthly mortgage payments can be calculated: If you put down less than 20%, however, you'll almost certainly have to pay mortgage insurance and higher interest (among other things). Assume a first-time homebuyer purchases the less-expensive home with a 20% down payment. Because of the larger down payment, monthly mortgage payments are significantly reduced. The figures would be different if a 20% down payment were made: On a 30-year fixed-rate loan with a 3.29 percent interest rate, $1,077 per month is the monthly payment. On a 15-year fixed-rate loan with a 2.79 percent interest rate, $1,466 per month is the monthly payment. Note: On 30-year loans, cash flow would improve by $230 per month, and on 15-year loans, cash flow would improve by $294 per month for buyers who put down a larger down payment. Housing markets: The figures above are based on national media reports. The specifics of the market in which you buy will determine your monthly mortgage payment. Homes on the coast and in cities are usually more expensive. Houses in the middle of the country are less expensive. It's possible that comparing your payment to the national average mortgage payment isn't helpful. According to Zillow, the median home price in San Diego is $808,608, which is significantly higher than the national average. Even with a 20% down payment, a 30-year loan at 3.29 percent would have a monthly payment of $4,018. In Omaha, Nebraska, the median home price is $234,639. Omaha residents can get a 30-year loan for $1,245 with a 20% down payment.
Parts of a Mortgage PaymentThe following three factors determine the amount of a monthly mortgage payment:
- The amount of the loan
- The rate of interest on your loan
- The term of a loan, or the number of years it will take you to pay it off with scheduled payments.
- Taxes on real estate
- Insurance for homeowners
- Mortgage insurance provided by a private company (PMI)