Home » Kentucky named among the top ten states with the most affordable mortgages

Kentucky named among the top ten states with the most affordable mortgages

A new study has revealed the states spend the smallest portion of their income on home payments throughout the US.

  • Kentucky mortgage payments average 23.56 of monthly income, the sixth-lowest proportion nationwide
  • West Virginia is the state with the most affordable monthly payments
  • The top ten affordable states all spend below one-quarter of their monthly income on mortgage payments

The research by SelfStorage.com analyzed the average home values, loan amounts, and incomes in each state to establish the average monthly mortgage payments nationwide.

Kentucky mortgage holders take out an average loan of $164,030. An average monthly payment of $1,091 comes in as 23.56% of the state’s average monthly income of $4,631. This makes for, on average, the sixth-most affordable mortgage payments nationwide.

On average, West Virginia is the state in which mortgage payments are the most affordable. With an average home value in the state of approximately $158,000, after an ordinary (17%) down payment, the average West Virginian loan amount comes in around $131,000. On a common 30-year, 7% fixed-rate mortgage, the average monthly payment in the state is just $873.27.

With the average income in West Virginia at a monthly $4,270, mortgage payments here equate to 20.45% of a resident’s monthly earnings, the lowest proportion in the country.

Iowa comes in as the state with the second most affordable payments. An average home value of $216,000 makes for an average loan of $180,000. An average monthly income of $5,466 in the state and an average monthly payment of $1,194 mean that Iowan mortgage holders spend 21.84% of their monthly earnings on these home payments.

Third, Kansas mortgage holders have an average monthly mortgage payment of $1,212. This comes in as 22.69% of the average monthly income in the state, which sits at $5,344. The state boasts a typical home value of $220,000, making for an average loan value of $182,000. 

With the nationwide average monthly payment at $2,036 and nationwide monthly earnings of $5,770.23, the average percentage of income spent on mortgage payments comes in at 35%. These top three states have mortgage costs far below this figure.

Ohio and Illinois have the fourth and fifth most affordable mortgage payments nationwide. The average loan amount in Ohio of $183,000 makes for an average monthly payment of $1,214, which is 23.41% of the average Ohioan monthly income of $5,188. Meanwhile, an average loan of $212,000 in Illinois requires a monthly payment of $1,411, meaning an average spend of 23.46% of the average monthly income of $6,017.

Kentucky and Oklahoma follow with the sixth and seventh most affordable mortgage payments. Relatively low typical loan amounts in these states of approximately $165,000 make for an average monthly payment on a 30-year, fixed-term mortgage of around $1,100. In Kentucky, this payment equates to 23.56% of the average monthly income, while in Oklahoma, it equates to 23.68%.

Mississippi comes in with the eighth most affordable monthly mortgage payment. The relatively low monthly payment of $975 equates to just 24.03% of an average monthly income of $4,060.

Michigan and Indiana are the final two of the top ten most affordable states. Average loan values close to $195,000 in both of these states make for monthly payments of approximately £1,300. This payment in Michigan equates to 24.54% of the average monthly income, while in Indiana it is 24.66%.

Rank State Average Loan Amount (After 17% downpayment) Average Monthly Payment (30 yr fixed) – 7% mortgage Median Monthly Income 2023  Ave. Payment as % of monthly income
1 West Virginia 131,284 873.27 4,270.67 20.45
2 Iowa 179,500 1,194.00 5,466.67 21.84
3 Kansas 182,250 1,212.29 5,343.67 22.69
4 Ohio 182,626 1,214.79 5,188.50 23.41
5 Illinois 212,197 1,411.49 6,017.08 23.46
6 Kentucky 164,030 1,091.10 4,631.08 23.56
7 Oklahoma 165,634 1,101.77 4,652.17 23.68
8 Mississippi 146,682 975.70 4,059.67 24.03
9 Michigan 195,246 1,298.74 5,291.50 24.54
10 Indiana 193,850 1,289.45 5,228.58 24.66

Chuck Gordon, CEO of SelfStorage.com, spoke on the findings: “With mortgage holders subject to the current cost of living in other areas, it’s interesting to learn the states whose mortgage constitutes the smallest burden.

“These results are also incredibly useful to those wishing to buy property and take out mortgages, potentially even influencing some to move across state lines to find the best place to make a home.”

SelfStorage.com is an online self-storage finder.

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