Today’s Washington, D.C., Mortgage Rates

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ByChristopher Boston
Edited byCasie McCoskey

Updated: September 28, 2023

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Mortgage rates in Washington, D.C., tend to be a bit higher than the national average. A mortgage, simply put, is a loan you take out to buy a home. If you're eyeing property in the nation's capital, you'll want to consider several factors to get the best deal. One is the mortgage rate, as it affects how much you'll pay over the life of the loan. Scoring a favorable rate can make your mortgage experience more manageable. So, before you send in that application, shop around and compare rates to make an informed decision.

Current Mortgage Rates in Washington, D.C.

The national homeownership rate in 2022 stood at 65.9%, according to FRED Economic Data. Washington, D.C., trails behind with a rate of 42.3%. While that's lower, it's worth noting that homeownership in the nation's capital has been on the rise since 2018. So, if you're considering buying a home here, a mortgage can certainly help.

When it comes to mortgage rates in Washington, D.C., they're generally higher than the U.S. average. Specifically, the current rate for a 30-year fixed-rate mortgage averages 7.22% in D.C., compared to 7.17% nationwide. The 15-year fixed rate sits at 6.48% in D.C., almost at par with the U.S. average of 6.51%. For a 5-year ARM, D.C. offers a slightly lower rate of 7.61% compared to the U.S. average of 7.70%.

Rates shift due to various factors like economic conditions and Federal Reserve policies. So, keeping an eye on current rates adds value to your homebuying journey because even a slight fluctuation can make a big difference in your monthly payments and the total interest you'll pay over the loan's life. By staying updated, you'll be better positioned to lock in a favorable rate at the right time.

Another thing to consider is that different mortgage types come with varying rates. You can use our rate table to help you find the best mortgage rates in Washington, D.C., for your specific needs.

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Finding the Best Mortgage Rates in Washington, D.C.

Mortgage rates have a significant impact on your financial health. Lower rates can lead to smaller monthly payments, allow you to build equity in your home faster, and even save you tens of thousands of dollars over the life of your loan. Knowing how crucial these rates are, it's empowering to realize that you have several ways to find competitive figures in Washington, D.C.

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Now that you have these tips, you're more than ready to tackle mortgage rates in Washington, D.C. These strategies give you extra leverage in securing a rate that could save you a significant amount of money in the long run.

Mortgage Options in Washington, D.C.

The average home value in the U.S. is around $349,770, but if you're looking to buy in Washington, D.C., you're likely staring at a heftier price tag — approximately $618,651. That's more than 1.5 times the national figure and could be another reason the homeownership rate in D.C. lags behind the national average.

Knowing the average home value in Washington, D.C., helps you set realistic budget expectations. If you're aware of the general price range, you can tailor your mortgage search accordingly. Mortgages can make owning a piece of the nation's capital possible, even if the home values here are steep. The good news is you have multiple mortgage options in D.C. to fit your financial situation.

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Knowing your mortgage options is just the first step. It's equally important to understand different rate structures. It helps you better predict your financial obligations over time. Let's break it down:

  • Fixed-Rate Mortgages: Your interest rate stays the same throughout the loan. It's predictable, which is great for budgeting. However, you might start off with a higher rate. This option is ideal if you plan to stay in your home for a long time.

  • Adjustable-Rate Mortgages (ARMs): The interest rate can change based on market conditions. You could start with a lower rate, but it might increase in the future. ARMs work well if you plan to sell or refinance before the rate adjusts.

Whether choosing among mortgage types or diving into rate structures, a little homework can go a long way in landing the best mortgage deals in Washington, D.C. With this information, you're better equipped to make a choice that aligns with your financial goals.

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HOW MONEYGEEK'S CALCULATOR MAKES MORTGAGE MATH EASY

MoneyGeek's mortgage calculator can simplify your search for the right mortgage in Washington, D.C. It allows you to input loan details like the amount you want to borrow, your down payment and potential interest rates. You'll see how these factors can change your monthly payments and the overall cost of the loan. Experimenting with it can provide valuable insights into how different mortgage rates in Washington, D.C., affect your finances. So feel free to try out various scenarios — it's an easy way to make more informed choices about your mortgage.

How to Get a Mortgage in Washington, D.C.

Getting a mortgage in Washington, D.C., is like assembling a puzzle — each piece (or, in this case, step) has to fit just right to complete the picture of homeownership. The more you know how to navigate these steps, the smoother the homebuying process. Armed with this information, you can be proactive rather than reactive, making it easier to secure a mortgage that aligns with your financial goals.

1

Check Your Credit Score

Your credit score is the cornerstone of your mortgage application. A higher score usually translates to lower interest rates. It’s best to obtain a free report from each of the three major credit bureaus. Thoroughly review it for errors or inconsistencies; if you find any, correct them.

2

Save for a Down Payment

The bigger your down payment, the smaller your mortgage loan. A down payment of at least 20% can help you avoid private mortgage insurance (PMI), which is an extra cost tacked onto your monthly payment. Open a dedicated savings account for this purpose, and consider automating contributions.

3

Shop Around

Each lender will offer different mortgage terms and rates. Get quotes from multiple sources, including banks, credit unions and online lenders. Compare the Annual Percentage Rate (APR), not just the interest rate, to understand the total cost of the loan.

4

Get Pre-Approved

A pre-approval letter gives you leverage when negotiating with sellers. However, pre-approval isn't a guarantee — it's an estimate of how much a lender may be willing to lend you based on your financial status. Be prepared to provide documents like pay stubs, tax returns and bank statements.

5

Choose Your Loan Type

You can choose between fixed-rate or variable-rate and conventional or government-backed mortgages. Consider how long you plan to live in the home and how much risk you’re willing to take with rate fluctuations.

6

Submit an Application

After you’ve chosen a lender and loan type, you'll need to submit a formal application. You'll be required to provide detailed financial information, so gather all necessary documents beforehand to expedite the process.

7

Close the Deal

Finally, you’ll attend a closing meeting to sign all the loan documents. Ensure you understand all the terms and conditions before signing. Once the loan amount is transferred to the seller, you can celebrate your new status as a homeowner.

Now that you know the steps involved, you're better equipped to secure a mortgage. Remember, attention to detail can make a big difference. It can help you find the best mortgage deal in Washington, D.C.

Mortgage Programs in Washington, D.C.

Owning a home in Washington, D.C., comes with more than just mortgage payments — you also have to consider hidden costs like homeowners insurance and utility bills. Luckily, the DC Housing Finance Agency has programs to make homeownership more affordable, possibly with lower mortgage rates in Washington, D.C. These can free up your funds for other inevitable costs, making your financial journey as a homeowner more manageable. Be sure to explore these local offerings when you're eyeing a mortgage.

DC Open Doors

The DC Open Doors program is here to make owning a home in Washington, D.C., more doable. It offers special loans with lower interest rates and helps you cover the usually steep down payment. You don't even have to make monthly payments on this down payment loan. You'll only pay it back if you sell your home, move out or refinance. New and repeat homebuyers can take advantage, whether you're a D.C. resident or not. You'll need a minimum credit score of 640 and an income below $199,200 to qualify.

DC4ME

If you work for the D.C. government, the DC4ME program is tailored for you. It offers a special mortgage with a reduced interest rate. You even have the option of getting help with your down payment. This program is open to all full-time District Government employees, so long as the D.C. Council oversees your employer.

To qualify, you must be a first-time homebuyer and meet certain requirements, like a credit score of 640 or higher. The program also lets you pair it with other D.C. home purchase aids. However, co-signers aren't allowed, and you'll need to take a Homebuyer Education Class to be eligible.

Home Purchase Assistance Program (HPAP)

If you're buying a home in D.C. for the first time and could use a financial boost, the Home Purchase Assistance Program (HPAP) might be a perfect fit. It offers interest-free loans to cover your down payment and closing costs. You don't have to stress about repaying it right away since it's a deferred loan. HPAP is designed for people with low to moderate incomes, so it could be your ticket to homeownership if you meet the income limits (which are based on the area's average income). Plus, the maximum loan amount is generous, currently set at $1,089,300.

Frequently Asked Questions

The right information can make all the difference when navigating the mortgage landscape in our nation's capital. You're in the best place to get answers that can help you understand mortgage rates in Washington, D.C., and how they impact your financial journey.

The rates are closely aligned, but there are subtle differences.

In Washington, D.C., the average rate for a 30-year fixed-rate mortgage is 7.22%, slightly higher than the U.S. average of 7.17%. For a 15-year fixed-rate mortgage, the average rate in D.C. is 6.48%, a bit lower than the national average of 6.51%. As for 5-year adjustable-rate mortgages (ARM), the average rate in D.C. is 7.61%, compared to 7.70% in the U.S.

Programs like HPAP, DC Open Doors and DC4ME provide various types of financial assistance to first-time homebuyers.

In Washington, D.C., mortgage rates can shift daily, even multiple times within a day. Factors like market demand, economic reports and Federal Reserve actions influence them. Staying updated on these can help you time your loan application for the most favorable rate.

Refinancing your mortgage in Washington, D.C., can offer several benefits, such as a lower interest rate, reduced monthly payments or a shorter loan term. However, weighing these advantages against closing costs and fees is crucial to ensure that refinancing truly serves your financial goals.

In Washington, D.C., your mortgage payment is influenced by more than just the mortgage rate. Property taxes, homeowners insurance and possibly private mortgage insurance (PMI) all contribute to your monthly costs. These additional expenses can make a significant difference, so it's helpful to account for them when budgeting.

Expect costs like loan origination fees, appraisal fees and title insurance. These can range from 2% to 5% of your home's purchase price.

About Christopher Boston


Christopher Boston headshot

Christopher (Croix) Boston was the Head of Loans content at MoneyGeek, with over five years of experience researching higher education, mortgage and personal loans.

Boston has a bachelor's degree from the Seattle Pacific University. They pride themselves in using their skills and experience to create quality content that helps people save and spend efficiently.


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