Recasting or making a lump sum payment on your mortgage loan has its advantages and disadvantages. But there are certain instances where making a lump sum payment on your mortgage just makes sense.
Summary: 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 Washington as of April 2020, 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 $2,649. 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 $755,600 as of April 2020, according to Zillow.
As we head further into 2020, mortgage rates are declining. 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 the spring of 2020.
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 $755,600 in April 2020. 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 3.33% during the second week of April.
Here’s how it breaks down:
- Home loan amount: $604,480
- Loan type: 30-year fixed-rate mortgage
- Mortgage rate: 3.33%
- Repayment period: 30 years
- Monthly payment: $2,649
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?
Home prices in the Seattle area are expected to continue rising throughout 2020. Going back to Zillow, their economists recently predicted that the median home value for Seattle would rise by around 3.7% over the next 12 months.
Mortgage rates are expected to stay low over the coming months. Economic concerns of a trade war with China along with the ongoing coronavirus pandemic are putting downward pressure on rates. In fact, mortgage rates hit an all-time low in the first week of March, and are not that far off from that low today. 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 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 for more than 25 years. 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.