Researching how much you can afford to pay for a property has more implications than knowing the interest rate on a mortgage loan and how much the monthly payment will be. Security deposits, property insurance, taxes, and other fees are included in the monthly cost of the loan.
Each state within the United States has a different average rate because real estate laws and regulations are autonomous. The area where the property is located plays a fundamental role in the property’s price, which is the figure of interest for calculating the monthly mortgage payment. To know the average mortgage payment, it is necessary to consider different factors.
What is a decent mortgage payment?
To establish the monthly mortgage payment, it is necessary to consider some aspects. Some areas may be more expensive or cheaper to live in. Home prices also vary from county to county and even neighborhood to neighborhood.
The first aspect to consider is that the area or location where you will live is worth the mortgage. If we add to this amount the interest rate of a mortgage loan, security deposits, property insurance, taxes, and any other fees, we will have a lot of numbers that will result in the monthly amount.
What is the average mortgage payment in 2022?
After calculating all these amounts, the Mortgage Bankers Association (MBA) determined what is the average mortgage payment in the United States as of April 2022:
- $1,889 for new applicants
- $1,967 for conventional loan applicants
- $1,374 for those applying for Federal Housing Administration (FHA) mortgages
What is included in the mortgage payment?
The mortgage payment comprises interest, taxes, and property insurance. Take into account all these costs included in the property:
- Principal Debt: How much money you borrow is the difference between your down payment and the total house payment
- Interest: Amount of additional money you pay for borrowing
- Taxes: Some states have property taxes that are paid locally and will depend on the assessed value of your home
- Mortgage Insurance: Private Mortgage Insurance (PMI) is insurance used to protect your payments. It does not cover the payer but the lender if the other party defaults on their monthly payments
Average mortgage payment by state
Home prices have been on the rise since 2019. At the beginning of 2022, an average property cost of $348,079 is considered a 27% increase over the same date in 2021. As a result, the average mortgage payment by state with a 30-year fixed rate is 5.81%, with a total of $1,840 due.
We did this calculation with all states to determine the actual increase and cost of homes. For example, in Alabama, priced home in 2021 at $190,597. If you add the 13% down payment, it has a total of $24,777, and the home mortgage would be for the remaining $165,820.
Those paying a 30-year fixed rate mortgage of $165,820 will have an average monthly payment of $974.
The average payment in each state |
|
| Alabama | $974 |
| Alaska | $1,652 |
| Arizona | $2,128 |
| Arkansas | $852 |
| California | $3,906 |
| Colorado | $2,880 |
| Connecticut | $1,842 |
| Delaware | $1,704 |
| Florida | $1,872 |
| Georgia | $1,483 |
| Hawaii | $4,901 |
| Idaho | $2,262 |
| Illinois | $1,296 |
| Indiana | $1,061 |
| Lowa | $936 |
| Kansas | $1,007 |
| Kentucky | $952 |
| Lousiana | $1,045 |
| Maine | $1,727 |
| Maryland | $2,031 |
| Massachusetts | $2,913 |
| Michigan | $1,126 |
| Minnesota | $1,661 |
| Mississippi | $792 |
| Missouri | $1,104 |
| Montana | $2,133 |
| Nebraska | $1,166 |
| Nevada | $2,249 |
| New Hampshire | $2,151 |
| New Jersey | $2,297 |
| New Mexico | $1,404 |
| New York | $1,789 |
| North Carolina | $1,490 |
| North Dakota | $1,381 |
| Ohio | $1,019 |
| Oklahoma | $865 |
| Oregon | $2,565 |
| Pennsylvania | $1,295 |
| Rhode Island | $2,128 |
| South Carolina | $1,361 |
| South Dakota | $1,399 |
| Tennesse | $1,376 |
| Texas | $1,460 |
| Utah | $2,784 |
| Vermont | $1,721 |
| Virginia | $1,839 |
| Washington | $3,052 |
| West Virginia | $648 |
| Winsconsin | $1,285 |
| Wyoming | $1,551 |
| Washington D.C. | $4,105 |
With this data, we confirm that the state with the cheapest mortgage payment is West Virginia at $648, while the most expensive state to borrow from is Washington, D.C., at $4,105 per month.
REFERENCE
Profile of Home Buyers and Sellers
Mortgage Rates Maintain their Ascent – Freddie Mac