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Which States Have the Highest Loan Payments?

A study by LendingTree [1]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) [2]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 [3], however, found that the average rate for a 30-year fixed-rate mortgage was 3.33%.