What is the average mortgage payment and how to lower yours

Americans are putting more toward their mortgage payments, new data shows. 

The average mortgage payment was $2,005 in the third quarter of 2025, the latest period for which data is available, according to Realtor.com research published in April. That's the first time the mean has crossed the $2,000 threshold and it's 44% higher than four years earlier.

This rapid rise in mortgage payments is due to an increase in home prices over the years and a prolonged period of elevated rates. For example, 22% of outstanding mortgage holders have a loan with a rate above 6% — the highest percentage in a decade, according to Realtor.com's analysis of the Federal Housing Finance Agency.  

But with careful preparation — including bolstering your credit score, making a larger down payment and choosing an affordable lender — there are ways to reduce the amount you spend.

Here are three of our top lenders that consistently offer below-average rates to customers. Each has a stellar customer service record and is widely available. 

If you're a veteran or servicemember, go with Navy Federal Credit Union 

Navy Federal Credit Union boasts some of the lowest VA loan rates on the market. Plus, it offers options other than VA loans exclusively for veterans, service members and their families.

We love that NFCU consistently ranks among the highest-rated lenders in J.D. Power's Customer Satisfaction surveys. It also offers borrowers the option to lower their rate without refinancing for a one-time $250 fee. 

If you prefer dealing with your finances online, go with Better Mortgage

Better Mortgage offers low-rate mortgages, making it a great option for people seeking affordability and who don't mind handling most of the mortgage application process online. 

Better also has a shorter turnaround time, nearly half the national average, and will pre-approve you in as little as three minutes. 

If you are buying a co-op or condo, go with FourLeaf Federal Credit Union. 

In addition to great rates, FourLeaf offers several mortgage products other lenders don't, including co-op and condo loans for borrowers who may not be purchasing a traditional detached home. 

We also love that you'll get the credit union experience without the stringent membership requirements. All you need to do to join FourLeaf is open a savings account with a $5 deposit.

Improving your credit can help you get the lowest possible rate, which will, in turn, reduce your monthly payments. 

The average mortgage rate for someone with a 780 credit score or higher is 6.42%, 0.79 percentage points lower than the average rate for someone with a 620 credit score, according to the latest Experian data published in May.

A difference of a rate that's just a half of a point lower could mean you save hundreds each month and tens of thousands over the life of the loan. Make a conscious effort to boost your score six months to a year before you apply for a mortgage.

One easy way to do that is by downloading *Experian Boost. This free feature will pull in any rent, mortgage, utility and other on-time payments into your credit report, giving it a boost. 

Finally, if you can make a larger upfront payment on your home, you'll pay less each month with a mortgage. 

To do this, save as much as you can before you apply for a mortgage. You can make your savings go farther by stashing it in a high-yield savings account where you can earn up to 4% on your account balance each year. 

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At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed financial decisions. Every mortgage review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of home loan products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

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*Results will vary. Not all payments are boost-eligible. Some users may not receive an improved score or approval odds. Not all lenders use Experian credit files, and not all lenders use scores impacted by Experian Boost.