The Average American Spends This Much on a Mortgage — See How You Stack Up
Home affordability is getting worse and worse for first-time homebuyers. With inflation pushing housing prices through the roof, and interest rates nearly doubling the price of mortgage payments, it’s no wonder many would-be homeowners are finding it difficult to buy a home right now.
One part of the equation is a low inventory in the real estate market, the result of homeowners locking in generationally low interest rates and not wanting to give up their low house payments.
A new GOBankingRates survey shows how much Americans are paying for their mortgages. You can see the results below to see how your mortgage payment stacks up.
Also see what determines your eligibility for a mortgage loan.
Monthly Mortgage Payment
- Under $500: 27%
- $500-$1,000: 14%
- $1,001-$1,500: 15%
- $1,501-$2,000: 22%
- $2,001-$2,500: 14%
- $2,501-$3,000: 4%
- $3,001-$3,500: 2%
- $3,501-$4,000: 1%
- $4,001-$4,500: 0.32%
- $4,501-$5,000: 1%
- $5,000+: 1%
What this means: The data tells two stories in this country. On one hand, a majority of mortgages (about 78%) are $2,000 per month or less. This is most likely due to lower housing prices and rock-bottom interest rates over the past decade. On the other hand, some payments are creeping up past $3,000 per month, which showcases the climb in housing prices and interest rates over the past few years.
Monthly Mortgage Payment by Age
In addition to a monthly mortgage payment breakdown, we also split up mortgage payments by age. Different generations pay much different amounts toward their mortgages, and the data isn’t totally surprising (though it is a bit disheartening).
Here’s how mortgage payments break down by age:
Under $500 Per Month
- Ages 18 to 24: 6%
- Ages 25 to 34: 11%
- Ages 35 to 44: 17%
- Ages 45 to 54: 32%
- Ages 55 to 64: 25%
- Ages 65 and over: 50%
What this means: Unsurprisingly, older generations pay less than $500 per month. They have had more time to pay down their mortgages or completely pay them off. Younger generations are naturally going to have higher housing prices as they enter a much higher-priced market.
$500 to $1,000 Per Month
- Ages 18 to 24: 6%
- Ages 25 to 34: 13%
- Ages 35 to 44: 19%
- Ages 45 to 54: 7%
- Ages 55 to 64: 18%
- Ages 65 and over: 16%
What this means: Once again, older generations have lower mortgages on average, with over 40% in this range aged 45 and older. Older millennials do represent nearly 20% of this group, though, as they may have had some more time to get better deals on homes with sub-3% mortgage rates.
$1,001 to $1,500 Per Month
- 18 to 24: 3%
- 25 to 34: 6%
- 35 to 44: 21%
- 45 to 54: 23%
- 55 to 64: 21%
- 65 and over: 8%
What this means: This group has a below-average monthly mortgage payment and probably has some equity in their homes. If they were able to lock in 3% mortgage rates a few years ago on houses worth $300,000, that would put their payments within this range (around $1,250). Again, it’s not surprising that younger millennials and Gen Z don’t have many low mortgages.
$1,501 to $2,000 Per Month
- 18 to 24: 35%
- 25 to 34: 45%
- 35 to 44: 23%
- 45 to 54: 16%
- 55 to 64: 20%
- 65 and over: 9%
What this means: This range is just under the median house payment of $2,162 (according to the Mortgage Bankers Association). The spread is pretty even across age ranges, with younger folks locking in a majority of mortgage payments between $1,500 and $2,000.
$2,001 to $2,500 Per Month
- 18 to 24: 39%
- 25 to 34: 13%
- 35 to 44: 11%
- 45 to 54: 11%
- 55 to 64: 7%
- 65 and over: 14%
What this means: Mortgages over $2,000 per month are getting pretty common, as housing prices and mortgage rates stay high. Unfortunately, younger generations are bearing the brunt of these higher prices, with nearly 40% in this price range being under 25 years old. This is indicative of the first-time homebuyer market right now.
$2,501 to $3,000 Per Month
- 18 to 24: 3%
- 25 to 34: 6%
- 35 to 44: 2%
- 45 to 54: 4%
- 55 to 64: 5%
- 65 and over: 3%
What this means: Not many respondents have mortgage payments in this higher range, but of the ones who do, the age range is pretty even. These may be starter homes with high rates or luxury homes.
$3,001 to $3,500 Per Month
- 18 to 24: 3%
- 25 to 34: 2%
- 35 to 44: 2%
- 45 to 54: 4%
- 55 to 64: 0%
- 65 and over: 0%
What this means: Of the survey respondents, no one over the age of 55 had a mortgage payment above $3,000. This makes sense, as many older individuals bought homes a while ago at cheaper prices and most likely have paid them down significantly. Very few people have homes this expensive, according to the survey.
$3,501 to $4,000 Per Month
- 18 to 24: 0%
- 25 to 34: 2%
- 35 to 44: 0%
- 45 to 54: 2%
- 55 to 64: 2%
- 65 and over: 0%
What this means: Very few respondents had a mortgage over $3,500 per month, as it would represent a significant amount of money for median income households. These are most likely higher-end homes.
$4,001 to $4,500 Per Month
- 18 to 24: 0%
- 25 to 34: 0%
- 35 to 44: 0%
- 45 to 54: 0%
- 55 to 64: 2%
- 65 and over: 0%
What this means: As expected, almost no one had mortgages over $4,000 per month. Only 2% of homeowners were paying this large of a monthly mortgage, and they were in the 55-64 range. These are most likely luxury homeowners.
$4,501 to $5,000 Per Month
- 18 to 24: 0%
- 25 to 34: 0%
- 35 to 44: 4%
- 45 to 54: 0%
- 55 to 64: 0%
- 65 and over: 0%
What this means: Only a select few respondents had mortgages over $4,500 per month and land in the 35-44 age range. This does not represent the median homeowner. These are most likely high-end homes.
Over $5,000 Per Month
- 18 to 24: 3%
- 25 to 34: 2%
- 35 to 44: 2%
- 45 to 54: 2%
- 55 to 64: 0%
- 65 and over: 0%
What this means: Somehow more respondents have mortgages over $5,000 per month than between $4,500 and $5,000 per month. The age range skews younger, which could mean higher-end homes with higher recent price tags and interest rates.
How Do Monthly Rent Costs Compare?
While mortgage payments are hitting all-time highs, many people are forced to keep renting. In fact, 70% of all survey respondents stated they don’t own homes and are currently renting. Here’s the breakdown of monthly rent payments for Americans:
- $500 and under: 21%
- $501 – $750: 15.5%
- $751 – $1,000: 17%
- $1,001 – $1,250: 13%
- $1,251 – $1,500: 8%
- $1,501 – $1,750: 6%
- $1,751 – $2,000: 5%
- $2,001 – $2,250: 2%
- $2,250 – $2,500: 3%
- $2,501 – $2,750: 2%
- $2,751 – $3,000: 2%
- $3,000 – $3,500: 3%
- $3,501 – $4,000: 1%
- $4,000+: 2%
What this means: A majority of respondents are paying less than $1,500 per month, which is less than the $1,702 monthly average (according to RentCafe). But some renters are paying over $4,000 per month, which most likely means luxury condos or homes in large cities. Overall, according to our survey, 55% of homeowners are paying less than $1,500 per month, while 74% of renters are paying less than $1,500 per month, making it still the cheaper option.
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