The national average mortgage debt is $201,811, an increase of almost 3% from 2016, and up 9.49% from 2007.
States With the Highest and Lowest Mortgage Debt
Residents of Washington D.C. had the highest average mortgage debt for the second year in a row, at $406,035. California (~$347K) and Hawaii (~$342K) followed the District with the most mortgage debt.
People in West Virginia owed the least on their homes, with an average of $114,583 in mortgage debt.
|Top 10 States with the Highest Average Mortgage Debt|
|Top 10 States with the Lowest Average Mortgage Debt|
Changes in Mortgage Debt by State
North Dakota took the top spot with a whopping 40.66% increase in mortgage debt compared to last year. Residents of several other states, including Texas, Washington D.C. Oklahoma and Wyoming also increased the amount of mortgage debt significantly over 2016.
|Top 10 States with the Highest % Increase in Mortgage Debt Compared to 2016|
|Top 10 States with the Highest % Increase in Mortgage Debt Compared to 2007|
How Much Has Mortgage Debt Increased Since the Recession?
When looking at a longer time frame, Massachusetts mortgage debt doubled, from $126,332 in 2007 to $252,624 in 2017. North Dakota was second in line, with average mortgage debt increasing more than 59%.
On the other hand, Maine had a decrease in average mortgage debt by -34.96%. Missouri, Nevada, Arizona and Florida also decreased average mortgage debt compared to 2007, before the recession.
|Top 10 States with the Lowest % Increase in Mortgage Debt Compared to 2016|
|Top 10 States with the Lowest % Increase in Mortgage Debt Compared to 2007|
Your mortgage debt appears on your credit report and is one of many factors that can influence your credit scores. Most credit scores consider the total amount of debt you have, your credit mix (types of debt), inquiries for new credit, and your payment history.
Making mortgage payments in full and on time, every time will help you build a positive payment history and can improve your credit scores whereas missing payments or paying less than the full amount owed can harm your scores.
If you're ready to take on a mortgage, check out our resources on what to do to prepare for buying a home and learn more about good credit scores. While there are no set minimum credit scores to buy a house, having higher credit scores will increase the likelihood you'll be approved for a mortgage and save money on lower interest rates.
Editorial Disclaimer: Opinions expressed here are author's alone, not those of any bank, credit card issuer or other company, and have not been reviewed, approved or otherwise endorsed by any of these entities. All information, including rates and fees, are accurate as of the date of publication.
This article was originally published on January 18, 2018, and has been updated.