Washington Mortgage Rates | Compare today’s prices

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Buying a home in Washington state means paying a higher price than most in the United States, but there are ways to expand your budget thanks to financial assistance from first-time homebuyer programs.

According to data from University of Washingtonthe statewide average sales price of $654,500 in the second quarter of 2022 was significantly higher than Nationwide median of $403,800 in July. This means that you will need a larger down payment, or have a higher income than most people, to get to your dream home.

If you are not lucky enough to be in this situation, do not be discouraged. Financial assistance is available from First Time Home Buyer Programs To help cover expenses such as closing costs and down payment requirements. If you qualify, you may end up being able to buy more home than you think. There are also different types of Mortgage Available programs, and choosing the right program can not only save you money, but it may mean the difference between approval or rejection.

If you are looking to get a mortgage in Washington state, here’s what you should know about it ratesfees, loan programs and financial aid.

What are the mortgage rates today in Washington?

For Sunday, September 18, 2022, here it is Current Mortgage Rates in Washington. average 30 year fixed rate mortgage 6.350%. average 30 year mortgage refinance rate 6.360%. Today, average Fixed rate mortgage for 15 years 5.650%.

Looking at variable rate loans, average 5/1 Adjustable Mortgage Rate (ARM) It is 5.750%.

This information is from a recent Bankrate survey of the nation’s largest mortgage lenders.

Current mortgage rates in Washington

loan type modified
30 years fixed 6.350%
15 years fixed 5.650%
1/5 arm 5.750%
30 years ref 6.360%

How much mortgage do you need to buy a house in Washington

One of the things you will need to buy a house is a file push down. The amount of down payment required mainly depends on the type of loan you get. conventional loanswhich is a popular option for many borrowers, can require as little as 3% max. FHA Loans It requires a slightly higher down payment of 3.5%, but it can be a good option for people who do not qualify for a traditional loan due to credit or income issues.

It is also possible to buy a home with no down payment at all. VA Loans It does not require any down payment, nor does it require any mortgage insurance payments. VA loans are not for everyone, as you will need some type of qualified military service Eligible.

While this is only the bare minimum, you should also consider a larger down payment if possible. Dina MayweatherD., a licensed real estate agent with Keller Williams, says you want to be sure that you can live comfortably after adding your monthly mortgage payments to your budget. Having a down payment of less than 20% on a conventional loan means that you will need a larger loan amount and higher monthly payments. You will get an additional monthly fee of Private Mortgage Insurance (PMI), although a PMI can be dropped from a conventional loan once it reaches 20% of equity.

metro area Average home price 3.5% 10% 20%
Seattle $746,200 $26,117 $74,620 $149,240
Spokane 404,300 dollars $14,150.50 $40,430 $80,860
Kennewick – Richland $415,800 $14553 $41,580 $83,160
Yakima $335,800 $11753 $33,580 $67,160
source: National Association of Realtors data for the first quarter of 2022

Types of Home Loans Available in Washington

You will find that there are many mortgage lenders that are licensed to do business in Washington. These lenders can offer different types of loans, including conventional loans, FHA loans, and VA loans. Each has its own unique requirements and features that can affect whether you qualify for the loan, and how much you will pay. closing costsWhat will your monthly payments be?

Normal

As a first-time home buyer, you can qualify for conventional loan With a down payment as low as 3%. Conventional loans are a popular option with many borrowers because they can offer competitive rates and fees. minimum Balance level It is usually 620, with a maximum debt-to-income ratio of 45%.

However, some lenders have more restrictive criteria. Much also depends on the automated underwriting system to make a decision based on a thorough loan review. As a result, some lenders may require a higher credit score or require a lower debt-to-income ratio.

FHA

If you are not able to get a conventional loan, consider this FHA Loans. FHA loans are insured by the Federal Housing Administration, offer More flexibility for borrowers Who do not meet the credit or income requirements for a traditional mortgage. FHA loans require a minimum down payment of 3.5%, but allow credit scores as low as 580. With a 10% down payment, the minimum credit score requirement drops to 500.

FHA loans can be more expensive. Borrowers will have to make a one-time down payment Mortgage Insurance PremiumIn addition to paying the mortgage insurance premium monthly.

Virginia

VA Loans, insured by the Department of Veterans Affairs, does not require an advance payment. Moreover, borrowers do not have to pay mortgage insurance. Because down payment is often a difficult item to meet, VA loans can be a great option for those who are short on cash, but still want to become homeowners.

However, VA loans are not available to everyone. To be eligible for a VA loan, you must have some type of eligible military service. The VA website contains details about who it is EligibleYou will want to confirm your eligibility first, before proceeding with this process.

Washington First Home Buyer Programs

With home prices in Washington significantly higher than the average American, it seems potential homeowners can use all the help they can get. Fortunately, a number of Evergreen State first-time home buyer programs are available to help with down payment requirements and closing costs.

The Washington State Housing Finance Commission (WSHFC) lists a few programs for which you may be eligible:

  • WSHFC Home AdvantagePreferred pricing: Borrowers under the specified income limits can benefit from a participating lender. Income limits will vary depending on the specific province, and those interested in this program must also complete an educational seminar for homebuyers.
  • WSHFC Home Key Chance ProgramPreferred rates for this program are available to applicants who are also using a dedicated down payment assistance program. Eligible borrowers can qualify as a first-time home buyer, or purchase a repeat home in a target area. Completing a home buyer education seminar, using a participating lender, and having an income within the program’s limits are many other requirements.
  • WSHFC First batch help: Eligible borrowers must have a credit score of at least 620, and not exceed family income limits. Borrowers can typically get about $10,000, but given the number of down payment programs available, the WSHFC recommends contacting the lender to determine which option is best for you.
  • WSHFC EnergySpark Home Loan: Borrowers who buy an energy-efficient home can save up to 0.25% on the interest rate. This program is also designed to work in conjunction with the Home Advantage and Down Payment Assistance programs. To be eligible for this type of loan, borrowers must have a credit score of at least 620, have a household income of less than $180,000, and have purchased a qualifying, energy-efficient home.

professional advice

Despite the name, some first-time homebuyer assistance programs are available for those who are repeat purchases.

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