Washington Mortgage Calculator: Estimate Your Monthly Payment
Updated: January 18, 2024
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When it comes to homeownership rate, Washington experienced a slight decrease in 2021 — going from 64.1% in 2020 to 63.4% in 2021. The median home value in the state is $393,800, and the average outstanding mortgage balance is $263,681.
Washington has the fourth most expensive average monthly mortgage payment in the country at $1,459 — Washington homeowners pay around $300 more than the national average.
However, your actual home loan costs may change based on your unique situation. You can use MoneyGeek’s Washington mortgage calculator to estimate how much you can expect to pay for a mortgage in the state, considering your loan amount, interest rate, term, and more, and how adjusting one or more of these factors may be better for your budget.
This guide also helps you determine what you can do to lower your monthly payments and the steps to follow when you’re ready to get a mortgage.
Start Here: Plug In Your Mortgage Factors
MoneyGeek’s Washington mortgage calculator can help you get a holistic estimate of your monthly mortgage payment. We broke down below some important factors to help you understand the calculation for homeownership costs and components of a mortgage.
Why and How to Use Our Mortgage Calculator
It’s important to establish a budget for your potential home. That way, you can reduce stress and keep yourself from getting overwhelmed financially when you get a mortgage. MoneyGeek’s Washington mortgage calculator helps you with this.
By using our calculator, you can determine how much you can afford, the mortgage term you need to stay on budget, how the interest rate affects payments, and the property tax amount you may pay. You can adjust multiple factors to see a detailed view of the cost of a mortgage in Washington.
Our calculator features 12 different homeownership factors that influence the cost of your monthly mortgage payments. Understanding the significance of each factor can help you make an informed decision when buying a house. The factors are below, with guidelines for using them in the calculator or explanations of what they mean.
Home Price:
Provide the maximum price you’re comfortable paying or the loan amount you want.
Down Payment:
You can input your down payment as a percentage of the purchase price or an amount in dollars. For a lower monthly payment, make a large down payment.
Interest Rate:
This is the rate lenders charge borrowers for loaning them money. If you know the interest rate of a lender, enter it. If not, check out MoneyGeek’s daily rate report.
Loan Terms:
This refers to how long you have to repay the loan. The most common loan terms are 15 and 30 years.
Payments per Year:
The number of times you want to pay in a year. Monthly payments, the most common, equals 12.
Property Tax:
This is the amount homeowners pay to the state based on the purchase price of their properties. In Washington, the average property tax is $2,134.
HOA Fees:
If your property has a homeowners association (HOA), you have to pay monthly or annual dues. Enter the amount if you know it.
Principal & Interest:
Principal is the amount you borrow from a lender; interest is what you pay to compensate your lender.
Monthly Payment:
Your monthly payment includes your principal, interest, property taxes, insurance and HOA dues.
Principal Payment:
This is the part of your monthly mortgage payment that reduces your balance.
Interest Payment:
This covers the interest charges your lender applies. Your balance does not go down with interest payments.
Total Cost With Interest:
This includes the repayment of your principal balance plus the total interest paid to your lender over the loan term.
In Washington, homeowners spend an average of $1,459 per month on a mortgage payment. You can reduce your home mortgage payments in Washington with these tips.
- Choose a less expensive house to purchase. The lower the cost of your home, the less you have to pay back monthly on a loan.
- Extend your loan term. While you could end up paying more in total interest, you have a lower monthly mortgage payment if you choose a, for example, 30-year loan over a 15-year loan.
- Increase the down payment. The more money you put down on a home, the less you borrow overall, leading to a lower monthly payment.
Next Steps: What to Do After You Have Estimated Your Mortgage Payments
Mortgages might be a challenge to understand, especially if you’re a first-time homebuyer. Luckily, MoneyGeek has all the necessary information to help you with your home-buying journey.
- Shop & Compare Rates - With many lenders offering their services in Washington, it’s best that you compare rates before taking out a mortgage loan. Check out our Washington mortgage rate page for more information.
- Not Ready To Buy? - You need to evaluate your circumstances and finances to determine whether you should buy or rent a house.
- Learn More - Are you unsure which mortgage loan is best for your needs? Learn about FHA loans, VA loans and reverse mortgages to determine your best option.
Frequently Asked Questions About Mortgages in Washington
That depends on how much you’re comfortable spending on a mortgage. Usually, lenders determine your mortgage affordability with your debt-to-income (DMI) ratio. If it’s 43% or lower, they consider your home loan affordable.
The average outstanding mortgage amount in Washington is $263,681.
Some mortgage programs require less than 5% for a down payment. There are also government-backed programs that don’t require it. For a conventional loan, you need 20% down to avoid private mortgage insurance or PMI.
You must purchase private mortgage insurance (PMI) if the down payment you make is less than 20%. It is removable when you reach 20% equity in the home.
The average annual property tax in Washington is $2,134.
In Washington, the average monthly mortgage payment is $1,459.
The median home value in Washington is $393,800.
sources
- Federal Reserve Economic Data. "Homeownership Rate for Washington." Accessed March 3, 2022.