Today's Mortgage Rates in Washington
Get a Lower rate in Washington whether you're buying, looking to get cash out of your home or lower your monthly mortgage payment.
Current Washington Mortgage and Refinance Rates
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What Affects Washington Mortgage Rates
The quote you'll get in Seattle will likely differ from the one you get in Spokane or anywhere in between. That's because rates aren't a static, statewide figure: They're a complex result of local and national economic factors and your personal situation.
Your final APR is different from the interest rate. The interest rate affects your monthly principal and interest payment, while the APR includes certain fees.
Other factors that affect your rate include:
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Federal Reserve policy and inflation: If inflation runs high and the Fed takes steps to cool the economy, rates can rise. If inflation slows and the Fed is more relaxed in its policy, rates can fall. That means Fed guidance has an indirect but important impact on rates.
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Economic indicators: Both the local and broader national economies have an affect on your rate. Wage growth, unemployment, and housing supply all influence pricing and investor expectations, which means that rates can vary by community in a large state like Washington.
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Your situation: Your credit score, debt-to-income ratio, down payment, and loan type also affect your final APR.
The rates on this page are based on certain, pre-set loan amounts and credit scores. To get a personalized rate that reflects both current economic conditions and your personal circumstances, you can connect with an experienced loan officer.
Types of Mortgages Available in Virginia
No matter where you're buying a home in the Evergreen State, you have access to home loans to meet your needs. Here are a few common mortgage types in Washington:
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Conventional Fixed-Rate Mortgages: Having a fixed rate means that principal and interest payments are predictable throughout the life of the loan, often 15 or 30 years. These loans conform to Fannie Mae and Freddie Mac guidelines for underwriting and loan amounts, and you'll usually need a credit score of at least 620 and a debt-to-income ratio under 43-45%. If you're an eligible first-time homebuyer, you might qualify for a minimum down payment as low as 3% if you're an eligible first-time homebuyer, but most buyers will need a down payment of at least 5%. Private mortgage insurance (PMI) is generally required if your down payment is less than 20%, but PMI can usually be canceled once you gain enough equity.
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FHA Loans: FHA loans have more flexible credit score and down payment requirements. Buyers with a credit score of 580 or higher can qualify with a down payment as low as 3.5%. Mortgage insurance premiums (MIP), which have both an upfront premium and ongoing monthly payments, are required regardless of down payment size. If you have a down payment of less than 10%, MIP generally lasts for the life of the loan unless you refinance into a conventional mortgage. If your down payment is 10% or higher, MIP ends after 11 years.
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VA Loans: VA loans have limited eligibility, but flexible terms. They're open only to eligible veterans, active-duty service members, and surviving spouses. A down payment generally isn't required, and VA loans have no private mortgage insurance requirement. They do, however, require a one-time VA funding fee, but that can be financed. Some eligible veterans, like those with disabilities related to their service, aren't required to pay the funding fee.
- Adjustable-Rate Mortgages (ARMs): Adjustable-rate mortgages, or ARMS, usually start with a period of fixed interest rates before the rate periodically adjusts. Common fixed-rate periods for ARMS are between 5 and 7 years. If you see a 5/1 ARM, for example, that means the loan has an initial fixed rate period of 5 years and annual adjustments afterwards. Some ARMs have more frequent adjustments: A 7/6 ARM has an initial fixed rate for seven years followed by adjustments every six months. Payments can change after the introductory period, but ARMs generally have rate caps to limit how much they can change. Like other conventional loans, PMI may be required if your down payment is less than 20%.
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Jumbo Loans: Jumbo loans exceed conforming loan limits, and generally come with stricter underwriting requirements. Conforming limits are higher in high-cost counties, but those limits can vary year to year. Most Washington counties use the same baseline limit, but some in the Seattle metropolitan area have higher limits.
Refinancing a Mortgage in Washington
Virginians can also lower their rate or tap into their home's equity with a mortgage refinance. Here are two common refinance options in Virginia:
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Rate-and-term Refinance: This straightforward refinance replaces your existing mortgage with a new one. You might pursue a rate-and-term refinance if you want to lower your rate, change loan types, or shorten your payoff term.
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Cash-out Refinance: This refinance replaces your existing mortgage with a new, larger one and lets you take a portion of your equity out as cash. The amount you can access depends on your home value, how much you still owe, lender loan-to-value limits, and closing costs. Unlike a home equity loan or HELOC, which come as second loans, a cash-out refinance replaces your primary mortgage with a new one.
Learn more about mortgage rates in Washington
Are there homebuyer assistance programs in Washington?
The Washington State Housing Finance Commission offers homebuyer assistance through its Here to Home initiative. That includes both home loans and downpayment assistance for qualifying buyers.
Does credit score affect mortgage rates?
Credit score has a major impact on your mortgage rates, with higher credit scores generally meaning lower interest rates.
Your credit score isn't the only thing that affects your mortgage rate, however. Your downpayment, debt-to-income ratio, loan term, and other factors will also affect your rate.
Larger factors, like inflation and the broader economy, also have a major impact on your rate.
How can I get a lower mortgage rate?
You can take several steps to lower your mortgage rate, like paying down debt, making a larger downpayment, or improving your credit score.
How will property taxes and insurance in Washington
affect my mortgage payment?
Property taxes are often included in your mortgage payment as part of an escrow account. If that's the case, it means your lender will collect property tax payments each month and pay the tax bill for you. Some loan types, like FHA and VA loans, sometimes require escrow accounts.
Washington generally has moderate statewide effective property tax rates, according to the Tax Foundation.
Keep in mind property tax can vary significantly within a state, with urban areas generally higher than those in rural areas. Tax Foundation data shows that rates in western Washington are generally higher than those in the rest of the state, concentrated around the Seattle area.
Homeowners insurance can also affect your mortgage payment if it's bundled into your premium with an escrow account. Your home's location, and whether it's in an area that is affected by natural disasters like floods, plays a major impact on your insurance cost. Details about your home, like its size, age, and condition can also affect your payment.
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