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With house values still rising across the state, and mortgage rates still relatively low, 2022 might be a good time to refinance a home loan in Washington. By refinancing in Washington State, homeowners can save plenty of money.
Earlier this week, Freddie Mac published the results of its latest weekly survey of the mortgage lending industry. And it brought good news for homeowners who are in the market to buy or refinance a home in Washington State.
According to Freddie Mac, mortgage rates are still relatively low as of January 2022. Home prices, meanwhile, continue to trend upward at a healthy pace. Here are the latest trends and stats.
However, refinancing activity has slowed. Let’s take a closer look at refinancing in Washington State in 2022.
The Mortgage Bankers Association (MBA) Refinance Index dropped 49% in January 2022 from than the same week in 2021. That’s likely because of the increase in rates over the past few months, and as such, refinance activity has slowed.
That said, rates are still low enough to justify a refinance, especially if you locked in at a much higher rate when you originally took out your mortgage. It may also be a gerat idea if you can qualify for a lower rate due to improvements in your credit score and income.
The average rate for a 30-year fixed home loan was around 3.56% as of mid-January 21, 2022. They’ve actually increased over the past few months from where they were at the start of 2021. Rates are also inching up for other mortgage products, including 15-year fixed and 5/1 ARM loans.
Generally speaking, when rates go down, a large number of Washington homeowners are able to refinance their mortgages to lower their monthly payments. But since rates are on a slightly upward trend, is now a good time to refinance?
Depending on your current interest rate and your home equity situation, 2022 might be a good time to refinance your home in Washington State. Please contact our staff if you’d like to know how it might work out for you, based on your current mortgage situation.
Related: Forecast for Washington FHA rates
Home prices in Washington State, meanwhile, continue to rise steadily in nearly every city. This means equity levels for homeowners are also on the rise.
According to real estate research firm Zillow, the average home price in Washington State is $573,071. That’s 23.2% higher than the same time last year. The real estate market in Washington State is very hot right now.
That means homeowners are likely seeing an increase in value in their homes, which means a lot more equity. This could allow more Washington homeowners to refinance their mortgage loans in 2022, considering how low rates currently are. Rising home values boost equity levels for homeowners, which can make it easier to qualify for a refinance.
Every refinancing situation is different, because there are several variables involved. If your primary goal is to save money over the long term, you’ll want to start by calculating your break-even point. This is the point at which the money you save each month (after refinancing) begins to surpass the amount you paid in closing costs.
We can help you determine if it makes sense to refinance your home in Washington, by evaluating your current mortgage situation and your financing goals. Refinancing doesn’t make sense in every situation. But with home prices rising and mortgage rates on a downward trend, you might be one of the growing number of homeowners who could benefit from a Washington home refinance.
Are you ready to apply for a mortgage to purchase a Washington home? If so, Sammamish Mortgage is here to help. We are a local, family-owned company based in Bellevue, Washington and have been serving the entire state since 1992, as well as Oregon, Idaho, and Colorado. We have plenty of mortgage programs for you to choose from with flexible qualification criteria. Please contact us if you have mortgage-related questions.
Whether you’re buying a home or ready to refinance, our professionals can help.
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No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.