Shocking Mortgage Costs: 50 Metro Areas That Could Change Your Retirement!
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Essential Insights for Your Retirement Move
- Thinking about relocating for your golden years? It’s crucial to evaluate the cost of living in various regions across the country.
- In the 50 largest metro areas, home prices can vary dramatically—from about $240,000 in Pittsburgh to a staggering $1.35 million in San Jose, California. The national median hovers around $416,880.
- Mortgage rates have seen recent fluctuations. Currently, the average rate for a 30-year mortgage sits at 6.59%, down from the highs we experienced last fall.
- With a 20% down payment, the average monthly mortgage payment across the nation is approximately $2,128. In popular retiree spots like Phoenix, you might be looking at over $2,600 a month, while Tampa offers a more manageable median payment of just over $2,000.
- Considering a move to one of the largest metro areas? We’ve broken down the average monthly payments to help you weigh your retirement options.
Do Your Research When Choosing a Retirement City
Feeling the itch to change your scenery as you approach retirement? You’re certainly not alone! Whether you’re dreaming of warmer climates or looking to be nearer to family, a post-work move can be a smart strategy.
However, it’s essential to do your homework. The cost of living can vary wildly across the U.S., particularly when it comes to purchasing a home. For instance, the average home price in Phoenix is around $515,000, while in the greater Tampa area, it’s a more affordable $400,000. That’s a major difference!
If you’re thinking about financing your new home, you’ll want to familiarize yourself with the monthly mortgage payments in your dream locations. We publish daily national averages for various loan types, making it easier for you to calculate what you can expect to pay in your chosen city.
Home Prices: A Tale of Two Markets
The reality is, home prices—and by extension, mortgage rates—vary significantly depending on where you are in the country. If you’re looking to buy in Pittsburgh, your costs will look vastly different compared to those in the Bay Area. Here are some key takeaways about the housing market:
- The priciest markets are all in California, with San Jose taking the lead at an eye-watering median home price of $1.35 million.
- Outside California, Boston sits at the top with a median price of $819,900, followed closely by New York at $750,000 and Seattle at $740,000.
- Pittsburgh, on the other hand, stands out as a beacon of affordability, with homes averaging just $239,900.
- In Florida, home prices range significantly—Miami leads with a median of $525,000, while cities like Orlando and Tampa offer much lower options.
To help you navigate the costs, we’ve compiled estimated monthly mortgage payments for 50 of the largest metropolitan areas across the nation, based on median home prices and current mortgage rates. Keep in mind, these calculations reflect principal and interest only, excluding taxes and insurance.
The Northeast
| Metro Area | Median Home Price | Average Mortgage Rate | Monthly Payment (20% Down)* |
|---|---|---|---|
| Boston-Cambridge-Newton, MA-NH | $819,900 | 6.63% | $4,202 |
| New York-Newark-Jersey City, NY-NJ-PA | $750,000 | 6.42% | $3,761 |
| Washington-Arlington-Alexandria, DC-VA-MD-WV | $585,000 | 6.65% | $3,004 |
| Pittsburgh, PA | $239,900 | 6.54% | $1,218 |
The South
| Metro Area | Median Home Price | Average Mortgage Rate | Monthly Payment (20% Down) |
|---|---|---|---|
| Miami-Fort Lauderdale-Pompano Beach, FL | $525,000 | 6.53% | $2,663 |
| Nashville-Davidson-Murfreesboro-Franklin, TN | $539,900 | 6.57% | $2,750 |
| Tampa-St. Petersburg-Clearwater, FL | $399,900 | 6.53% | $2,028 |
The Midwest
| Metro Area | Median Home Price | Average Mortgage Rate | Monthly Payment (20% Down) |
|---|---|---|---|
| Minneapolis-St. Paul-Bloomington, MN-WI | $420,000 | 6.63% | $2,153 |
| Cincinnati, OH-KY-IN | $319,900 | 6.58% | $1,631 |
The West
| Metro Area | Median Home Price | Average Mortgage Rate | Monthly Payment (20% Down) |
|---|---|---|---|
| San Jose-Sunnyvale-Santa Clara, CA | $1,350,000 | 6.52% | $6,841 |
| Los Angeles-Long Beach-Anaheim, CA | $1,130,000 | 6.52% | $5,726 |
Understanding Current Mortgage Rates
The national and state averages mentioned above are sourced from reliable APIs, assuming a typical loan-to-value ratio and a credit score in the mid-range. These figures represent what borrowers can expect when seeking quotes from lenders. Keep in mind that actual rates may vary based on individual qualifications and circumstances.
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