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National Average Monthly Mortgage Payment and Loan Affordability in Each State, Ranked

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With mortgage debt at record levels, paying off a home can be expensive. This is especially true in recent weeks as the coronavirus (COVID-19) pandemic has left millions of Americans out of work and without an income.

To see where monthly mortgage costs are highest, LendingTree analysts looked at the average mortgage payment offered through 2019 to LendingTree users in each of the nation’s 50 states. With this data, LendingTree analysts ranked each state based on its respective average monthly mortgage payment and then compared that to the national average payment of $1,159.

Additionally, LendingTree also studied the ratio of household income before the coronavirus crisis hit to monthly mortgage payments in each state. Our analysts then created a separate ranking based on where mortgages are the most expensive, relative to income. Borrowers in states with the highest relative mortgage payments will likely struggle the most in the wake of COVID-19, as homeowners lose their jobs and see their incomes reduced dramatically.

Fortunately for borrowers struggling to keep up with their mortgage payments, there are numerous mortgage relief programs being implemented to help homeowners stay afloat.

Key findings

Mortgage payments are the most expensive in Hawaii, California and New York. The average monthly mortgage payment in these states is $1,684. That’s $525 more a month than the national average of $1,159.

Mortgage payments are the least expensive in Iowa, Indiana and Arkansas. In these states, the average monthly mortgage payment is $978. This is $706 less than the cost in the top three most expensive states and lower than the national average by $181.

Hawaii, Mississippi and Idaho are the states where the average monthly mortgage payment is the highest relative to average household income. In these three states, the average mortgage accounts for 18.9% of the average household’s total monthly income, 2.5 percentage points higher than the national average of 16.4%.

The ratio of mortgage payments-to-income is the lowest in Connecticut, New Hampshire and Minnesota. In these three states, mortgage costs amount to only 13.2% of the average monthly household income.

States with the highest average monthly mortgage payments

No. 1: Hawaii

  • Average monthly mortgage payment: $1,780
  • Difference between state mortgage payment and national average: $621
  • Average monthly income (homeowners): $9,084
  • Mortgage payment as a percentage of income: 19.6%

No. 2: California

  • Average monthly mortgage payment: $1,696
  • Difference between state mortgage payment and national average: $537
  • Average monthly income (homeowners): $9,165
  • Mortgage payment as a percentage of income: 18.5%

No. 3: New York

  • Average monthly mortgage payment: $1,575
  • Difference between state mortgage payment and national average: $416
  • Average monthly income (homeowners): $8,459
  • Mortgage payment as a percentage of income: 18.6%

States with the lowest average monthly mortgage payments

No. 1: Iowa

  • Average monthly mortgage payment: $970
  • Difference between state mortgage payment and national average: -$189
  • Average monthly income (homeowners): $6,622
  • Mortgage payment as a percentage of income: 14.6%

No. 2: Indiana

  • Average monthly mortgage payment: $980
  • Difference between state mortgage payment and national average: -$179
  • Average monthly income (homeowners): $6,355
  • Mortgage payment as a percentage of income: 15.4%

No. 3: Arkansas

  • Average monthly mortgage payment: $984
  • Difference between state mortgage payment and national average: -$175
  • Average monthly income (homeowners): $5,523
  • Mortgage payment as a percentage of income: 17.8%

States with the highest average mortgage payments relative to average household income

No. 1: Hawaii

  • Mortgage payment as a percentage of income: 19.6%
  • Difference between state and national mortgage-to-income ratio: 3.2%
  • Average monthly mortgage payment: $1,780
  • Average monthly income (homeowners): $9,084

No. 2: Mississippi

  • Mortgage payment as a percentage of income: 18.7%
  • Difference between state and national mortgage-to-income ratio: 2.4%
  • Average monthly mortgage payment: $990
  • Average monthly income (homeowners): $5,283

No. 3: Idaho

  • Mortgage payment as a percentage of income: 18.7%
  • Difference between state and national mortgage-to-income ratio: 2.4%
  • Average monthly mortgage payment: $1,155
  • Average monthly income (homeowners): $6,167

States with the lowest average mortgage payments relative to average household income

No. 1: Connecticut

  • Mortgage payment as a percentage of income: 12.8%
  • Difference between state and national mortgage-to-income ratio: –3.6%
  • Average monthly payment: $1,209
  • Average monthly income (homeowners): $9,456

No. 2: New Hampshire

  • Mortgage payment as a percentage of income: 13.3%
  • Difference between state and national mortgage-to-income ratio: -3.1%
  • Average monthly payment: $1,140
  • Average monthly income (homeowners): $8,595

No. 3: Minnesota

  • Mortgage payment as a percentage of income: 13.6%
  • Difference between state and national mortgage-to-income ratio: -2.8%
  • Average monthly payment: $1,083
  • Average monthly income (homeowners): $7,963

Methodology

To calculate the average monthly mortgage payment in each state, LendingTree averaged the monthly mortgage payments offered by lenders on the LendingTree platform through 2019. Using this number, each state was ranked from the highest average monthly mortgage payment to the lowest.

LendingTree analysts used estimates provided by S&P Global Market Intelligence to determine the average household income in each state for 2019. By dividing monthly mortgage payments by the average household income, our analysts determined what share of a household’s income goes toward its mortgage payment.

LendingTree research analyst Jacob Channel contributed to this study.

 

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