Washington Mortgage Calculator

Best mortgage lenders in Washington

The top mortgage lenders in Washington have a nationwide presence. These lenders are Morty Inc, AmeriSave, Infinity Mortgage Group.

How to calculate mortgage payment in Washington

Use our fast and user-friendly mortgage calculator WA to evaluate your future monthly expenses. Detailed, step-by-step instructions are provided below for your convenience.

Why and How to Use Our Mortgage Calculator

Use our house payment calculator Washington for thorough planning of your future spendings. Let’s take a closer look at each field in order to gain a better understanding of the mortgage in Washington parameters.

The first key element is the home price – the amount you intend to invest in your future property. A down payment represents the upfront portion of this price. To avoid expensive insurance requirements, it is recommended to provide a minimum of a 20% down payment, especially when considering a conventional loan. The remaining balance constitutes the principal, which, for instance, equals 80% of the home price with a 20% down payment.

The loan term signifies the duration over which you'll fully repay your mortgage through scheduled payments. Fixed-rate conforming loans typically extend up to 30 years, while adjustable-rate options typically feature shorter terms.

An interest rate is a fixed or variable fraction of the principal that you must pay throughout the loan's duration. It's important to note that you are actually charged an annual percentage rate (APR), which is not precisely the same as the interest rate. While the interest rate forms the bulk of the APR, the latter also encompasses various fees, including origination fees, closing costs, insurance payments, and more.

For more precise assessment, the interest rate used for these calculations is based on the current mortgage rates in Washington, given a $400,000 home price and a 10% down payment.

Median property taxes in Washington counties

The property tax is another important thing to consider when selecting your future house. Many lenders insist on setting up a mortgage escrow account to ensure the borrower’s keeping up with the tax and insurance costs.

Source: American Communities Survey 2016, U.S. Census

Washington Housing Market 2024

The past year has seen a steep increase in the market value of housing in Washington. This continues a longstanding trend amplified by the COVID pandemic. Nevertheless, the pace of growth has diminished compared to the previous year, while both purchase and refinance rates have been on the increase for some time and are expected to rise further in the near future.

How do I calculate my mortgage payment?

The most convenient way to do this is to make use of our calculator. It's powered by a simple formula, which you can also use to calculate the amount to be paid by hand:

M = P*i(1 + i)^n / (1 + i)^n – 1

M – estimated monthly mortgage payment;

P – principal;

I – monthly interest rate (to determine it, divide your annual mortgage rate by 12);

N – the loan term expressed in months (in other words, the overall number of monthly payments)

Imagine you are applying for a 15-year mortgage loan with a fixed 6.99% APR (which is .0699 as a unit fraction). The house costs $500k, with 10% ($50,000) to be paid down. The principal amount (P) will be equal to 90% of the initial home cost ($500,000 – $50,000 = $450,000).

I = .0699 % / 12 = .005825%.

Finally, let’s convert the loan length from years to months: N = 15 * 12 = 180.

M ($) = 450,000*.005825(1 + .005825)^180 / (1 + .005825)^180 – 1 ≈ 4042.

So, you are going to pay about $4042 a month.

It is important to note that the calculated M value is approximate, as no extra fees are taken into account.

Tips for first-time home buyers in Washington

Firstly, there are several federal agencies, namely USDA, FHA, and VA, that provide loan guarantees to specific borrowers, offering numerous options for many first-time homebuyers to align with their budget.

In addition to these government-guaranteed initiatives, it's worth exploring offerings from UHC (Washington Housing Corporation), which are accessible to residents of Washington. Specifically, first-time homebuyers may apply for the FirstHome program, which offers assistance with down payments and closing costs. To qualify, applicants must meet the requirements for an FHA loan and have a FICO score of at least 660. This program covers up to 6% of the loan amount, allocated toward the down payment and/or closing costs. It's important to note that this assistance is provided in the form of a 30-year-fixed-rate second loan. If you do not meet the criteria for the FirstHome program, there's an alternative option called the Washington Housing Score Loan, which covers up to 4%. The minimum acceptable credit score for this program is 620.

Tips for first-timers:

1. Get pre-approved in advance to enhance your creditworthiness. It is highly advisable to obtain pre-approval letters from not just one, but at least two or three different lenders.
2. Compare mortgage rates from different lenders, considering a minimum of three options to make an informed decision.
3. Do preliminary calculations based on the amount you have been pre-approved for. Plan your future expenses.
4. Set aside for a down payment as much as possible – and as early as possible. The down payment will decrease the principal amount, which, in turn, can reduce your potential expenses. So it is important to start saving in advance.
5. If you are eligible for a VA loan, consider this option first of all.
6. Consider government-backed plans, as well as local assistance programs. There can be tempting offers – don't miss the boat.
7. Pay off previous debts, if possible.