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The average monthly mortgage payment in 2026 is approximately $2,200–$2,600 for a median-priced home of $400,000–$450,000 with a 20% down payment at the current 30-year fixed rate of 6.27%. Total payment including property tax and insurance typically runs $2,800–$3,400 depending on state. States with high property taxes like New Jersey ($2.23%) or Illinois ($1.88%) add $400–$600/month compared to low-tax states like Hawaii (0.27%) or Alabama (0.40%).

On a $100,000 annual salary, you can typically afford a home priced between $280,000 and $380,000 using the 28% rule (monthly payment ≤ 28% of gross income = $2,333/month). With a 20% down payment and 6.27% rate, $2,333/month supports a loan of approximately $380,000, meaning a home price of around $475,000. However, adding property taxes and insurance reduces this to roughly $340,000–$380,000 all-in.

A 15-year mortgage at 5.50% vs a 30-year at 6.27% saves significant total interest — on a $350,000 loan, you pay approximately $189,000 less in interest over the life of the loan with a 15-year term. However, monthly payments are about 45% higher. The 30-year is better if you need lower monthly cash flow, plan to invest the difference, or expect to sell within 7–10 years. The 15-year is better if you can afford the higher payment and want to build equity faster.

For conventional loans, you need a minimum 620 credit score, but 740+ gets you the best rates — typically 0.5–1.0% lower than a 680 score. FHA loans allow 580+ with 3.5% down. On a $400,000 mortgage, the rate difference between a 680 and 760 credit score can mean $150–$250 more per month and $50,000–$90,000 more in total interest over 30 years.

PMI (Private Mortgage Insurance) typically costs 0.5%–1.5% of the loan amount annually, or about 0.85% on average. On a $350,000 loan that's approximately $248/month. PMI is required when your down payment is less than 20% on a conventional loan. Once you reach 20% equity in your home, you can request PMI cancellation. FHA loans require mortgage insurance for the life of the loan if you put less than 10% down.

As of 2026, the 30-year fixed mortgage rate is 6.27% and the 15-year fixed is 5.50%, according to Freddie Mac's Primary Mortgage Market Survey. Rates have moderated from the 2023 peak of 8%+. Adjustable-rate mortgages (ARMs) offer lower initial rates — the 5/1 ARM is approximately 5.8% — but carry rate reset risk. New construction loans (construction-to-permanent) typically run 0.5–1.0% higher than standard purchase mortgages.

Property tax is included in your monthly mortgage payment as part of your escrow account. State averages range from 0.27% (Hawaii) to 2.23% (New Jersey) of home value annually. On a $400,000 home, that's $1,080/year ($90/month) in Hawaii vs $8,920/year ($743/month) in New Jersey — a difference of $653/month for the same home price. Texas at 1.60% adds $533/month on a $400,000 home.