The Average Mortgage Payment for Each Generation — How Does Yours Compare?
Written by
Chris Adam
Edited by
Zuri Anderson
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You may be struggling to make ends meet and pay your mortgage each month. If so, you’re in good company with other American homeowners.
It may help you better see how you’re doing if you compare yourself to other homeowners and their mortgages.
Here’s a look at the average payment for each generation.
Average Payments and Balances
Here’s a look at the average monthly mortgage payment by generation. The numbers are based on Experian data:
- Gen X: $2,313
- Millennials: $2,298
- Gen Z: $1,882
- Baby boomers: $1,724
Here’s a look at the average mortgage balance by generation:
- Millennials: $308,348
- Gen X: $282,845
- Gen Z: $244,605
- Baby boomers: $193,934
Behind the Numbers
According to Experian, the average mortgage payment in America has risen sharply since 2020 for every generation except baby boomers.
That statistic shows some of the impacts of elevated rates and home prices still quite high. Gen X still has the highest monthly payment, but millennials are set to take over soon.
“While longtime homeowners haven’t seen much motion in their payments since 2020 thanks to fixed interest rates, newer (and oftentimes younger) homebuyers have borne the brunt of recent disruptions in the market,” per Experian. “According to Experian data from the second quarter (Q2) of 2024, millennials carry the highest average mortgage balance of any generation.”
It’s important to keep in mind that several factors make up the monthly mortgage payment: The terms of the mortgage, the interest rate and the amount of equity the borrower has in their mortgaged property.
Lowering Your Costs
Housing costs can eat up a significant portion of a budget. If you’re struggling or simply want to put yourself on a better path, there are quite a few options you can try.
Refinancing may be the option you think of immediately when it comes to lowering your mortgage payments. You can seek out rate-and-term refinance options to replace your existing mortgage with a new loan at a lower rate or for a different timeline.
You may not think of this option when it comes to lowering your mortgage payment, but it may be possible to eliminate mortgage insurance. You might have had to take this out when you set up your mortgage. You can check with your lender about dropping this insurance, provided you meet certain requirements.
You may be able to save some money as a homeowner by recasting your mortgage.
“Recasting your mortgage involves making a large lump-sum payment toward your balance, after which your lender re-amortizes the loan,” per CNBC. “With a smaller balance, you’ll owe less in interest and pay less each month.”
Let’s look at a few other options you may want to check out to lower your housing costs. First, you can search for cheaper home insurance. Second, it may be possible for you to secure a loan modification or forbearance.
The numbers show that homeowners of every generation may be struggling with their budgets and finances. You can look into a few options to see if any might help you lower your monthly housing costs and put more money back into your budget.
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