Median Monthly Mortgage Payment Falls

The first thing a prospective home buyer has to plan for financially is the down payment. It’s a significant amount of money to come up with and you need to have a plan to cover it and closing costs. After that, though, it’s time to start thinking about your potential monthly mortgage payment. It’s likely to be among your biggest bills and you want to make sure it works with your budget and won’t cause you financial stress. So what is the typical mortgage payment these days? Well, according to the Mortgage Bankers Association, the median monthly mortgage payment is now $2,137. The good news for buyers, though, is that falling rates have payments trending lower. Edward Seiler, MBA’s vice president, housing economics, and executive director of the Research Institute for Housing America, says affordability conditions have been easing. “Home buyer affordability improved in November, with a decline in mortgage rates providing relief to prospective home buyers,” Seiler said. “MBA expects that affordability conditions will continue to improve as mortgage rates decline, which should generate increased demand heading into the spring home buying season.” (source)

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