Summary: Based on the current median home price, a 20% down payment, along with average mortgage rates for a 30-year fixed home loan, the average principal and interest payment mortgage in Seattle is approximately $3,060 as we head into 2019. But there are several variables that will affect your monthly payments.
Average mortgage payments in Seattle, Washington have risen steadily over the last couple of years, in response to rapidly rising home values across the metro area. That probably comes as no surprise.
As we head into 2019 mortgage rates have finally flattened out from their steady rise over the past couple of years. Seattle has seen the average monthly mortgage payments among Seattle homeowners move sharply higher at a pace that was not sustainable. With the expectation that home appreciation will slow and mortgage rates will begin to flatten the Seattle housing market will likely take a much needed breather.
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, at the end of 2018.
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 $733,400 in October 2018. 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 rose to 4.75% during the first week of December. (That is down from the multi-year high of almost 5% in mid-November.)
Here’s how it breaks down:
- Home loan amount: $586,500
- Loan type: 30-year fixed-rate mortgage
- Mortgage rate: 4.750%
- Repayment period: 30 years
- Monthly payment: $3,060
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.
Will home prices and mortgage rates continue to rise?
Home prices in the Seattle area are expected to continue rising throughout 2019 although at a much slower pace than in previous years. Going back to Zillow, their economists recently predicted that the median home value for Seattle would rise by around 2.1% over the next 12 months.
Mortgage rates are also expected to move higher over the next 12 months, but probably by a lesser degree. Economic concerns of a trade war with China along with other warning signs of a bear market could not only slow the pace at which rates are rising but open the possibility of rates moving lower which we haven’t seen since 2016. Both of these factors will improve affordability in the Seattle area, improve the health of the local housing market long-term and help reduce the risk of a housing bubble.
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 a hot real estate market 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.