From High to Low: Here's a Lowdown on U.S. Mortgage Prices

This is where your mortgage stands in comparison to other homeowners.

With the novel coronavirus pandemic hitting the world, life as we know it has changed forever. Apart from the grave results of sickness and fatalities, the outbreak also brings about great economic consequences that need special measures to be managed down the line.

The novel coronavirus real estate effect is a part of these reverberations. Reduction in interest rates, moratorium on mortgages, and shortage in inventory now make up everyday conversations in the sector. This holds true for homebuyers, sellers, and realtors alike. For some, these conversations drive their future planning. For others, they are crucial to their current survival.

With this in mind, it is natural to think about where you stand as a homeowner with an existing mortgage. Are you paying more or less than other homebuyers in the country? Where do you stand with other fellow residents in the same predicament? Is your regular income or affected revenue in proportion to a so-called affordable mortgage?

Thanks to lending marketplace LendingTree, you can now find out this information without having to jump through hoops.

Highest and Lowest Mortgage Average Has a Difference of Over $700

In order to present its statistics of mortgage rates, LendingTree compiled the data of its countrywide user base.

According to the platform, it found a $706 difference between the most expensive and most affordable mortgage payments in the U.S., which was categorized by average monthly payments.

The three most expensive states get that distinction with a monthly average mortgage payment of $1,684. Whereas, the three most affordable states have a monthly average mortgage payment of $978. This figure was reached after calculating the average of the three states in each group.

Amid the coronavirus real estate effect, you might be interested to know about these regions to see if you actually call them home. The most expensive regions for monthly mortgage deem to be Hawaii ($1,780), California ($1,696) and New York ($1,575). Whereas, the least expensive states for monthly mortgage are Iowa ($970), Indiana ($980) and Arkansas ($984).

These statistics are not only tied to the interest rates in these states. They also take the property prices in account that these regions post on an average basis. This is why, you may not be surprised to see a region such as New York on this list. 

National Monthly Average is Not That Far From the Lowest Payments

The report also goes on to elaborate on the national average for monthly mortgage payments, which stands at $1,159. Curiously, this is just $181 higher than the lowest monthly mortgage payments across the U.S, but $525 lower than the highest monthly mortgage payments.

As if that wasn’t interesting enough, the firm also judged the affordability of these payments in relation to the average monthly income of the residents of each region. This comparison makes it easier for you to see whether the average mortgage payments go beyond the average income of other borrowers in your region, and how this might affect your personal repayment ability in the face of this pandemic.

From this perspective, the states of Hawaii, Mississippi and Idaho are front and center as taking the highest percentage of residents’ monthly income in terms of mortgage payments. To elaborate, the collective monthly income-to-mortgage percentage in these states stands at 18.9 percent. Whereas, the lowest monthly income-to-mortgage payment ratio is held by Connecticut, New Hampshire and Minnesota at 13.2 percent. For perspective, the national average in this aspect is 16.4 percent.

The coronavirus real estate effect is covered under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Under the CARES act, homeowners can avail moratorium and forbearance options through their loan servicer. By turning to this program, you can make sure to safeguard your home amid these troubling times.

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