How much would the monthly payment be for an average American household?

Homeownership is not only an exciting concept, it is also a major step toward a financially stable lifestyle. After all, when you own your home, you don’t have to worry about rising rental prices. And as your home value increases and you make your mortgage payments, you’ll build equity.

Here again, to buy a house is an important decision. And it’s important that you can make your monthly mortgage payments with confidence. Otherwise, you could lose your home and the financial stability it represents.

As of March 2024, the average U.S. home price is $393,500. And the current average mortgage rate over 30 years is 7.32%. But what does this mean in terms of monthly mortgage payments? How much will you have to pay per month what if you bought an average American home at today’s mortgage rates? This is what we will calculate below.

Find out how affordable your mortgage could be now.

How much would the monthly payment be for an average American household?

Several variables play a role in your monthly mortgage payments. For example, the amount you borrow, your interest rate and your mortgage term are all factors that impact the total amount you will pay monthly. Here’s how much you’d have to pay per month for an average American home based on the length of mortgage you choose and the deposit you make:

• 30-year mortgage with 20% down: If you put 20% down on a $393,500 ($78,700) home, your mortgage amount would be $314,800. At the average 30-year mortgage rate of 7.32%, your monthly mortgage payment would be $2,162.46.
• 30-year mortgage with $0 down: If you financed the entire cost of a $393,500 home with a 30-year mortgage at 7.32%, your monthly mortgage payments would be $2,703.07.
• 15-year mortgage with 20% down: The average mortgage rate over 15 years is currently 6.75%. If you put 20% down and financed the remaining $314,800 of your purchase with a 15-year mortgage at 6.75%, your monthly payments would be $2,785.69.
• 15-year mortgage with 0% down: If you financed the entire cost of a $393,500 home with a 15-year mortgage at 6.75%, your monthly payments would be $3,482.12.

Don’t wait for mortgage rates and monthly payments to increase. Lock in today’s mortgage rates now.

Why you should lock in your mortgage rate now

Are you wondering whether to lock in your mortgage rate now or wait? Here’s why you might want to lock it now:

• Persistent inflation continues: THE most effective way for the Federal Reserve to fight inflation is to raise the federal funds rate (the benchmark rate for consumer interest rates). And since Inflation has become strong so far in 2024, higher rates could be coming. By lock in your mortgage rate nowyou can avoid any potential rate hikes in the future.
• A better offer may be available: As buyers sit on the sidelines waiting for rates to drop, you may have less competition to face. As a result, sellers may be more open to negotiations, meaning you could get a better deal on the price of your home if you buy now than if you wait.
• You Don’t Build Equity If You Don’t Own Your Home: If you rent a house or apartment while waiting buy one yourself, you are not building any capital. You’re just paying to take up space. But when you buy your house, you will start building equity – a significant step towards long-term financial stability.

Take advantage of the benefits of homeownership today.

The essential

The average American home loan will cost between $2,162.46 and $3,482.12 per month, depending on the term of your mortgage and the down payment you make. Of course, this assumes your mortgage is at the current average mortgage rate.

However, it is a good idea to buy your house now. If inflation continues, mortgage rates could rise, increasing the monthly cost of the average American home. Plus, because some buyers wait for lower mortgage rates before entering the market, you may have less competition to face, which could mean you save money on the price of your home. Not to mention that until you own your home, your monthly payments do nothing to build equity.

Compare your mortgage options now to reap the benefits of buying a home today.