What is the Average Mortgage Payment? (2024)

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• The average mortgage payment is $2,715 on a 30-year fixed mortgage and $3,552 on a 15-year fixed mortgage.
• The median payment, a more accurate measure, is $2,617, according to the Mortgage Bankers Association.
• Be sure to think about other monthly costs you'll need to pay, including insurance, property taxes, utilities, and HOA fees.

According to Business Insider's calculations using data from the U.S. Census Bureau, the Department of Housing and Urban Development, Freddie Mac, and the National Association of Realtors, the average mortgage payment in the U.S. is $2,715 on a 30-year fixed mortgage, and $3,552 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 U.S. 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 U.S. is $2,167 per month, according to the most recent data from the Mortgage Bankers Association.

Keep in mind that this cost includes only the monthly principal and interest payments. Other necessary costs like homeowners insurance, HOA fees, and property taxes — often called escrow costs — are typically added to your payment too, though these vary widely by location.

Factors influencing mortgage payments

Mortgage payments are different for everyone. Factors affecting mortgage payments include:

Interest rates

Your mortgage interest rate will play a huge role in how much you pay each month. Typically, lenders give the best interest rates to borrowers with high credit scores, as this indicates they pay their bills on time and manage their debts responsibly.

Loan term

Your loan term is a factor, too. A longer loan term will mean smaller payments, as it spreads the balance of your loan out over more months. A shorter loan term will give you bigger monthly payments.

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.

Property taxes and insurance

If your mortgage includes an escrow account, you'll pay for two costs each month in your monthly mortgage payment: property taxes and home insurance. These costs can vary quite a bit depending on your insurance company, where you're located, and the size of your house.

If you owe mortgage insurance on your loan, this will also be paid as part of your monthly mortgage payment.

Average mortgage payments by region

Because home prices differ so much across locations, average mortgage payments are different, too. See below for how payments can vary across the country.

National average

Based on current mortgage rates and home sales data, the average payment on a 30-year fixed mortgage is $2,715 and $3,552 on a 15-year fixed mortgage.

Regional mortgage payment differences

Home prices are highest in the Northeast, so mortgage payments are much bigger there. They're lowest in the Midwest. Here are average payments broken down by region (using the methodology noted at the bottom of this article):

Urban vs. rural areas

Home prices in urban areas tend to be much higher than those in more rural communities, so you can typically expect higher mortgage payments, too. For example, the median home price for Austin, Texas is $550,000, according to Redfin. But if you buy in a more rural part of Texas, like Nacogdoches, for instance, you'll pay just half that.

How to calculate your mortgage payment

Knowing what your mortgage payment will be is critical to determining how much house you can afford. To do this, you can:

Using a mortgage calculator

A mortgage calculator is your best bet for determining what your estimated mortgage payment will be. You'll need an idea of what home price you're looking at, how much of a down payment you're bringing, and current interest rates to use one of these tools.

Principal and interest breakdown

A mortgage calculator will give you an idea of what you'll pay each month in principal and interest, which make up a large portion of your monthly mortgage costs. On a fixed-rate loan, you'll typically pay more toward interest at the start of your loan. As you get further into your loan term, more of your payments will start going toward the principal balance.

Additional costs to consider

Most mortgages come with escrow accounts. These are separate accounts that your loan servicer uses to pay for your HOA dues, home insurance premiums, and property taxes. You'll pay a certain amount per month toward your escrow account along with your mortgage payment.

Tips for managing your mortgage payment

Your monthly mortgage payment will likely be one of your biggest costs as a homeowner. Follow these tips to manage your mortgage payment successfully:

Refinancing options

If you ever get to a point where paying your mortgage is difficult, refinancing may be able to help. You might be able to get a lower interest rate, which would lower your payment, or you could get a longer loan term. This would spread your payment out over a longer period and reduce your payment as well.

Making extra payments

If you want to pay down your mortgage quicker, you can make occasional extra payments toward your loan balance. You might want to do this when your annual tax refund comes in or if you get a holiday bonus, for example. You can also make a slightly larger-than-required payment each month (say $2,000 instead of $1,950), and ask your servicer to put that extra payment straight toward your principal balance. This will reduce your interest costs over the long haul.

Adjusting your budget

Having a good household budget in place is important all the time — but especially when you have a mortgage payment to cover. Failing to make your payments can result in foreclosure, so it's critical you allot enough funds each month to pay your mortgage.

If you have an adjustable-rate mortgage, you should also stay on top of interest rate trends and know the rate caps for your loan. Since your payment fluctuates as interest rates do, you'll need to be ready to cover any payment increase that comes with that.

FAQs on average mortgage payment

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 Q2 of 2024, the average price was $501,700. We then took the median down payment of 14% (as reported by the National Association of Realtors) to determine an average loan size of $431,462. Average mortgage rates for August 22, 2024 according to Freddie Mac data were also used. This average estimate doesn't include taxes and insurance, since these costs vary widely.