There are several things you can do to figure out how much mortgage you can afford, including calculating a realistic budget before purchasing a home.
Based on current home prices and mortgage rates, the average monthly mortgage payment for Washington State home buyers would come to around $1,663, as of December 2020. That number could even be slightly higher, if you add in property taxes and insurance.
In This Article:
- Calculating the Average Mortgage Payment in Washington State
- Many Variables to Factor Into Calculating Mortgage Payments
- Washington State Home Buying Costs Still Rising in 2021
Of course, there is a lot of variables that can influence the amount you might pay. And we can give you a detailed breakdown of what your monthly payments might be. But as for the average, here’s how we came up with that figure:
Calculating the Average Mortgage Payment in Washington State
To approximate the average monthly mortgage payment for Washington State home buyers in 2021, we used the current statewide median home price of $458,313 along with average mortgage rates.
Factoring in a down payment of 10%, and choosing the popular 30-year fixed-rate home loan option that currently has a rate of 2.67%, this came to a monthly payment of $1,663.
Here are the figures:
- Home price: According to Zillow, the statewide median sales price rose to $458,313. That’s the figure we started with to determine the average mortgage payment for Washington State. (Obviously, the median price is higher in places like Seattle.)
- Down payment: Some borrowers put down 20% or more to avoid private mortgage insurance, while others seek low-down-payment financing options due to having limited funds. Down payments range from 3% to 20% for most loans. So we used 10%, which is probably close to the average.
- Loan amount: Ten percent of the median home price mentioned above is $45,831. Subtracting this from the median price gives us our hypothetical loan amount: $412,482.
- Mortgage rate: For new mortgages as of December 17, 2020, Freddie Mac reported that the average rate for a 30-year fixed mortgage loan dropped to 2.67%. That’s the rate we used for our calculation.
- Payments: Financing this loan amount at 2.67% for 30 years would result in a monthly payment of around $1,663.
We’ve excluded property taxes and home insurance for the sake of simplicity. When adding those costs, the average monthly mortgage payment for Washington State would be slightly higher than the figure we arrived at.
This is just a hypothetical scenario to give you some sense of what the monthly payments would be for a median-priced home financed at average rates. As you can see, there are a lot of variables that determine housing costs. Actual payments will vary based on the amount being borrowed, the type of loan, the term length and mortgage rate, discount points, and other factors.
Washington State Home Buying Costs Still Rising in 2021
The average monthly mortgage payment for newly originated home loans in Washington has increased over the last couple of years. This is mainly the result of rising home values.
According to the housing analysts at Zillow, the median home value in the state rose by 12.1% over the last 12 months. Right now, the real estate market in Washington State is hot, so prices are expected to continue at a similar rate of increase.
As a result, the average monthly mortgage payment for Washington State will likely rise as well into 2021. That said, if mortgage rates continue to stay low or decrease even further, mortgage payments might not stray too far from where they are right now. Clearly, a case could be made for buying a home today.
Need an Estimate on Your Home Loan?
Looking for a mortgage rate quote for a potential home loan on a home purchase in Washington? Sammamish Mortgage can help. We have been offering many mortgage programs since 1992 and can give you a specific rate quote based on the type of loan you need. We can also estimate how much your monthly payments will be, as well as your closing costs. Please contact us with any financing questions you have, or to receive a rate quote.