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Which States Have the Highest Loan Payments?

A study by LendingTree revealed that the states of Hawaii, California, and New York have the most expensive mortgage payments, far surpassing the national average of $1,159.

The average mortgage payment in these three states is $1,684. Hawaii, however, has the most expensive average payment at $1,780. The average homeowners’ income is $9,084 and the mortgage payment represents 19.6% of a homeowners’ income. 

Although Mississippi has an average mortgage payment of $990, it represents 18.7% of a homeowners’ monthly income. The average monthly income for a homeowner in Mississippi is $5,283. 

Iowa and Indiana were found to have the most affordable mortgage payments at $970 and $980, respectively. A mortgage payment in Iowa makes up 14.6% of a homeowners’ monthly income, which is $6,622. 

Homeowners in New Jersey had the highest average income at $9,859, but have an average mortgage payment of $1,367. 

Mortgage payments could soon be rising as CoreLogic’s Home Price Index (HPI) found that home prices rose 4.1% annually in February, which is slightly higher than the 4% gain in February 2019.

The overall HPI was 10.1% higher than its pre-crisis peak in April 2006. 

Homes in the lowest-price tier rose 6% annually in February, compared to 5.2% for the middle-price tier. The middle-to-moderate price tier saw home prices rise 4.5% and 3.6% for the high-price tier. 

CoreLogic also reports that homes in the lowest-price tier since 2011 have gained 98.6%. Homes in the highest-price tier have gained 49.5% since 2011. 

Idaho, once again, led the nation in annual appreciation at 11.4% in February. New Mexico was a closed second at just over 9%. 

Connecticut was the only state to report home price decrease at 0.6%. Prices in 41 states, including the District of Columbia, have risen above their pre-crisis peaks. 

Utah reported the biggest dip in price growth, rising by 5.6% in February, which is a drop from the 10.6% gain in February 2019. 

Freddie Mac's latest Primary Mortgage Market Survey, however, found that the average rate for a 30-year fixed-rate mortgage was 3.33%.

About Author: Mike Albanese

A graduate of the University of Alabama, Mike Albanese has worked for news publications since 2011 in Texas and Colorado. He has built a portfolio of more than 1,000 articles, covering city government, police and crime, business, sports, and is experienced in crafting engaging features and enterprise pieces. He spent time as the sports editor for the "Pilot Point Post-Signal," and has covered the DFW Metroplex for several years. He has also assisted with sports coverage and editing duties with the "Dallas Morning News" and "Denton Record-Chronicle" over the past several years.
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