Summary: Based on the current median home price, along with average mortgage rates for a 30-year fixed home loan, the average mortgage rate in Seattle is approximately $2,965 as we head into 2017. 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.
But what’s different now, as we had in 2017, is that mortgage rates are also on the rise. The average rate for a 30-year fixed home loan has risen sharply over the last few weeks, according to Freddie Mac’s weekly survey. This means that the average monthly mortgage payment among Seattle homeowners has also risen steadily.
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 2016.
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 $611,500 in mid-December 2016. 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 4.13% during the week of December 14. (That marked six consecutive weeks of mortgage rate increases, by the way.)
Here’s how it breaks down:
- Home loan amount: $611,500
- Loan type: 30-year fixed-rate mortgage
- Mortgage rate: 4.13%
- Repayment period: 30 years
- Monthly payment: $2,965
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.
Home Prices and Interest Rates Are Rising
Home prices in the Seattle area are expected to continue rising throughout 2017. Going back to Zillow, their economists recently predicted that the median home value for Seattle would rise by around 6.3% during 2017.
Mortgage rates are expected to climb over the next 12 months as well, but probably by a lesser degree. Rising home values are the real concern, and they will likely result in higher average mortgage payments for Seattle homeowners in 2017.
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 contact us if you have questions or would like to get a quote for a loan.