How much can you expect to pay in mortgage payments when you buy a home in Seattle? In this article, we’ll go over the current home prices in the state and what the average mortgage payment is relative to average home prices.
Based on the current median home price of a home in Seattle, Washington as of December 2022, after a 20% down payment at average mortgage rates for a 30-year fixed home loan, the average principal and interest payment mortgage in Seattle is approximately $3,734. But there are several variables that will affect your monthly payments.
Average mortgage payments in Seattle, Washington have fluctuated over the past couple of years as average home prices have dipped and risen again. From mid-2018 to mid-2019, prices declined from a peak of $778,000 down to $734,000. But prices have been climbing back up since then and now sit at about $887,202 as of January 2023, according to Zillow.
As we head into 2023, mortgage rates are still low, but they’re ticking upward. While prices have been increasing, low mortgage rates are balancing mortgage payments out.
Calculating the Average Monthly Mortgage Payment in Seattle
There is no official source for average mortgage payment data. So we have taken some current information relating to home prices and interest rates, and plugged it into a standard amortization calculator. The resulting figure gives us some insight into the average mortgage payment in Seattle in 2023.
For home price data, we turned to the real estate information company Zillow. By their estimation, the median home price in Seattle, Washington was around $960,925 as of September 2022. This reflects the median home values provided by other sources as well, so it’s a pretty good number to use for calculating the average monthly mortgage payment in Seattle.
For this calculation, we will use the average mortgage rate for a 30-year fixed home loan, simply because it’s the most popular type of loan used by borrowers in the Seattle area. According to the latest data from Freddie Mac, the average rate for a 30-year loan is currently 5.88 % during the last week of December 2022.
Here’s how it breaks down:
- Home loan amount: $710,562
- Loan type: 30-year fixed-rate mortgage
- Mortgage rate: 5.88%
- Repayment period: 30 years
- Monthly payment: $3,734
Granted, this is just a basic calculation that leaves out some variables for the sake of simplicity. In reality, there are many factors that can affect monthly mortgage payments, including property taxes, down payment amount, discount points and more.
This is not meant to be a precise measurement of average mortgage payments in Seattle, but merely a ballpark figure based on current housing costs.
What Will Happen to Home Prices and Mortgage Rates?
In 2023, housing prices might decrease. Most experts have anticipated that rising mortgage rates will have a dampening effect on the housing market, and it appears that property values are already trending down.
Find Out What Your Monthly Payments Will Be
Are you in the market for a mortgage loan in the Seattle area? If so, we can give you a specific quote based on your current financial situation and the type of loan you need. This will help you determine what your monthly mortgage payments will be going forward, so you can plan accordingly.
If you’re planning to buy a home in Seattle, we recommend that you get pre-approved for a loan before entering the market. Being pre-approved for a mortgage can increase your chance for success. For one thing, sellers will be more inclined to accept your offer if you have a pre-approval letter. This is particularly important in real estate markets like Seattle.
Contact our loan experts today to get started.
Disclaimer: This article approximates the average monthly mortgage payment in Seattle using home price information and mortgage rate data from third-party sources. Your monthly payments will obviously vary based on the size of your loan and the mortgage rate you receive. Please use the Instant Rate Quote tool to get real-time accurate Seattle mortgage rates and costs in seconds.
Need a Mortgage Loan in Seattle, WA?
Will you need mortgage financing to buy a home in Seattle? We can help. Sammamish Mortgage has been serving buyers across the Pacific Northwest since 1992, including Washington, Oregon, Colorado & Idaho. We offer a wide variety of mortgage programs and products with flexible qualification criteria. Please contact us today with any financing-related questions you have.