What Affects Mortgage Refinance Rates in Washington
Washington refinance rates reflect national lending conditions along with the details of your replacement mortgage. Your credit profile, loan-to-value, loan structure, property details and occupancy can affect the rate and terms available to you.
A refinance quote can differ from a purchase quote for the same borrower because the purpose and structure of the transaction are different. Compare the proposed new mortgage with the loan you already have, including its rate, term and costs.
The interest rate is the percentage charged for borrowing the principal. The annual percentage rate, or APR, is a broader annualized measure that includes the interest rate plus certain loan costs. APR can provide additional context when two refinance offers have different rates or upfront costs.
If you are buying rather than refinancing, compare Washington mortgage rates.
Types of Refinances Available in Washington
A rate-and-term refinance replaces your existing mortgage without taking cash out of the property. The replacement loan can change the rate, term or both.
A lower interest rate could reduce your monthly principal-and-interest payment, while changing the term can affect both the payment and how long you carry the mortgage. Compare those changes with the costs required to complete the refinance.
How long you expect to keep the new mortgage also affects the calculation. Use the refinance break-even calculator to compare the upfront costs with the expected monthly savings.
FHA and VA Refinance Options in Washington
If your current mortgage is FHA-backed, an FHA streamline refinance uses limited borrower credit documentation and underwriting to refinance an existing FHA-insured mortgage. An FHA simple refinance also replaces an existing FHA mortgage but uses an appraisal and credit-qualifying underwriting. HUD's FHA streamline refinance guidance covers the streamline requirements.
If your current mortgage is VA-backed, a VA Interest Rate Reduction Refinance Loan, or IRRRL, may help lower your monthly mortgage payment or make payments more stable. The VA's IRRRL guidance requires the mortgage being refinanced to already be VA-backed.
Conforming Loan Limits for a Washington Refinance
Washington has two one-unit conforming loan-limit tiers for 2026. Under FHFA's 2026 conforming loan limits, 36 of the state's 39 counties use the $832,750 national baseline.
King, Pierce and Snohomish counties have a higher one-unit conforming loan limit of $1,063,750. That includes the Seattle, Tacoma and Everett areas.
Spokane County, Thurston County in the Olympia area, Clark County, Whatcom County and the other counties outside the higher-cost tier use the $832,750 baseline. A refinance can therefore exceed the conforming loan limit in one part of Washington while remaining below it in another.
A mortgage below the applicable county limit still has to meet conventional mortgage requirements to qualify as conforming.
Washington Refinance FAQs
When Does Refinancing Make Sense in Washington?
Compare your existing mortgage with the proposed replacement loan, including the interest rate, monthly payment, new loan term and closing costs. The length of time you expect to keep the new mortgage affects whether any monthly savings have enough time to offset the upfront costs.
Does Seattle Have a Higher Conforming Loan Limit?
Yes. Seattle is in King County, which has a $1,063,750 conforming loan limit for one-unit properties in 2026. That is higher than the $832,750 baseline used in most Washington counties.
Do Tacoma and Everett Have Higher Conforming Loan Limits?
Yes. Tacoma is in Pierce County and Everett is in Snohomish County. Both counties use the $1,063,750 one-unit conforming loan limit for 2026.
Is a $1 Million Refinance a Jumbo Loan in Washington?
It depends on the county. A $1 million one-unit refinance remains below the $1,063,750 conforming limit in King, Pierce and Snohomish counties. It exceeds the $832,750 limit in the other 36 Washington counties. The mortgage must also meet applicable conventional requirements to qualify as conforming.
Can I Refinance a VA Loan in Washington?
Yes. If your current mortgage is VA-backed, an IRRRL may be available to refinance it. The existing mortgage must be VA-backed, and VA and lender requirements apply to the new loan.
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