Summary: With house values still rising across the state, and a steady drop in mortgage rates, 2020 might be a good time to refinance a home loan in Washington. In this article, we’ll go over refinancing rates in Washington State and how they can help save homeowners 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 dropped to an all-time low during the first week of March 2020, and as of the time of this writing (April 2020), rates are not too far off from that dramatically low level. Home prices, meanwhile, continue to trend upward. Here are the latest trends and stats.
Low Mortgage Rates Open Up Refinancing Opportunities
At the start of this year, the average rate for a 30-year fixed home loan was around 3.72%. It has been on a steady decline since then, and is currently averaging 3.31%, as of April 16, 2020. Rates have also dropped for other mortgage products, including 15-year fixed and 5/1 ARM loans.
Generally speaking, when rates go down like this, a large number of Washington homeowners are able to refinance their mortgages to lower their monthly payments.
Depending on your current interest rate and your home equity situation, 2020 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
Washington State Home Prices Continue to Climb
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 $428,900. That’s 6.6% 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 2020, considering how low rates currently are and likely will be over the coming weeks and months. Rising home values boost equity levels for homeowners, which can make it easier to qualify for a refinance.
Will a Refi Work for You?
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.
Have Questions About Washington Home Loans?
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 serve the entire state, 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.