Summary: Are you thinking of refinancing your Washington State home? If so, 2020 may be a great time to do so. This article will explain why.
With home prices rising and mortgage rates dropping throughout the state, refinancing is becoming more attractive to homeowners in Washington State. And home refinance conditions might continue to improve, as we progress further into 2020.
This week, the government-sponsored mortgage buyer Freddie Mac announced that the average rate for a 30-year fixed home loan dipped and continues on its downward trend. On March 26, 2020, Freddie Mac reported that the average rate for a 30-year mortgage loan sits at 3.5%. The 15-year fixed, which is another popular product for refinancing homeowners, sits at 2.92%.
According to the company’s economists, “The Federal Reserve’s swift and significant efforts to stabilize the market were much needed and helped mortgage rates drop for the first time in three weeks.”
Meanwhile, home prices across Washington continue to rise rapidly, following a 507% increase over the last 12 months alone. Experts anticipate prices to rise at roughly the same pace, and expect prices to increase by 4.9% over the next 12 months. As a result of these trends, now might be a good time to refinance a home in Washington State – at least for some homeowners.
A Good Time to Refinance Your Home in Washington?
Mortgage rates have come down quite a bit since last year. During the same week one year ago, the average rate for a 30-year fixed home loan (the most popular mortgage product) was hovering around 4.06%. The latest national survey from Freddie Mac showed that rates in that category have dropped and now sit at 3.5%.
Lower borrowing costs could put a lot of Washington homeowners in a good position to refinance their homes. In fact, refinancing has become so popular over recent months as a result of the continued drop in interest rates.
While the reasons for refinancing can vary from one person to the next, most people do it to secure a lower rate and reduce their monthly payments. Others do it to switch from an adjustable-rate to a fixed mortgage loan, or to withdraw equity from their homes. But regardless of the motivation, homeowners in Washington owe it to themselves to review their current mortgage situation to see if refinancing could work to their advantage.
Related: Types of home loans in Washington
Rising Prices Boost Equity for Homeowners
In most cases, home buyers need to be in a positive equity position to refinance their homes. This is often a requirement for refinancing a mortgage loan in Washington, and elsewhere across the country. Fortunately, there have been some positive trends in this department.
According to the real estate information website Zillow, the median home price for Washington State rose by 5.7% over the last 12 months, as already mentioned, to $422,400, and the company’s economists expect prices to continue rising over the next year.
The bottom line is that most homeowners across Washington State have significantly more equity in their homes today than they did a couple of years ago. As a result, an increased number of homeowners are entering the “window” where mortgage refinancing makes good financial sense.
We Can Help You Run the Numbers
We can review your current mortgage situation to determine if refinancing makes sense. We can also run the numbers to show how much you might save over time (if you’re able to secure a lower rate than the one you have right now).
Elsewhere on our website, you can find current mortgage rates for a variety of home loan products. This resource can help you determine whether or not refinancing makes sense right now. We can also provide you with a personalized rate quote tailored to your specific situation and the kind of loan you need.
Have Questions About Refinancing or Other Mortgage Products?
Are you curious about refinancing or other home loan products? Sammamish Mortgage can help. We are a local, family-owned company based in Bellevue, Washington. We serve the entire state, as well as the broader Pacific Northwest region that includes Idaho, Colorado, and Oregon. We offer a wide variety of mortgage programs and products with flexible qualification criteria. Please contact us if you have mortgage-related questions.