Washington Mortgage and Refinance Rates

Current mortgage rates in Washington

As of Saturday, September 23, 2023, current interest rates in Washington are 7.59% for a 30-year fixed mortgage and 6.84% for a 15-year fixed mortgage.

The Evergreen State is home to 7.7 million residents, with an average home value of $569,509 as of April 2023, according to Zillow.

Refinance rates in Washington

Washington borrowers who saw their home equity rise during the pandemic might be interested in refinancing their mortgage as a way to tap those funds. Check out Bankrate’s guide to cash-out refinancing to learn more.

How to find the best mortgage rate in Washington for you

Step 1: Strengthen your credit score

Long before you start looking for a mortgage lender or applying for a loan, give your finances a checkup, and improve your standing if needed. This means pulling your credit score and credit reports. You’re entitled to a free credit report from each of the three main reporting bureaus (Experian, Equifax and TransUnion), which you can get through AnnualCreditReport.com.

Step 2: Determine your budget

To find the right mortgage, you’ll need a good handle on how much house you can afford. That’s because a lender could qualify you for more mortgage than you need, or one that would max out your budget and leave no room for unexpected expenses.

Step 3: Know your mortgage options

There are a few different types of mortgages. Many lenders offer conventional loans that require as little as 3 percent down. FHA loans also have a low down payment threshold, while VA loans (for veterans) and USDA loans (for borrowers in rural areas) have no down payment requirement. If you’re in the market for a jumbo loan, check Washington’s county-by-county loan limits.

Step 4: Compare rates and terms from several lenders

Don’t settle on the first lender you talk to — rate-shop with at least three different banks or mortgage companies. You can look to your bank or other banks, credit unions, online lenders and local independents to ensure you’re getting the best deal on rates, fees and terms.

Step 5: Get preapproved for a mortgage

As you comparison-shop, keep in mind that getting a mortgage preapproval is the only way to get accurate loan pricing for your specific situation.

Mortgage options in Washington

If you’re looking to get a mortgage in Washington, there are several options:

• Washington conventional mortgages: To qualify for a conventional mortgage, you’ll need a minimum credit score of 620 and a debt-to-income (DTI) ratio no more than 45 percent. If you make a down payment of less than 20 percent, you’ll need to pay private mortgage insurance (PMI) premiums, as well.
• Washington FHA loans: If your credit history disqualifies you from a conventional mortgage, you might be able to obtain a loan insured by the Federal Housing Administration (FHA). If you have a down payment of at least 3.5 percent, you could qualify for this type of loan with a credit score as low as 580.
• Washington VA loans: If you’re a veteran or active-duty member of the military, you might qualify for a mortgage backed by the Department of Veterans Affairs (VA). A VA loan doesn’t require a down payment or mortgage insurance, but you do need to pay a funding fee, which starts at 2.15 percent for homebuyers.

First-time homebuyer programs in Washington

In Washington, qualifying homebuyers have access to a variety of homebuyer programs and educational opportunities to help them through the process, including:

• Home Advantage Program: This state program is for new homebuyers — either first-time homebuyers or those who have owned in the past but do not currently. Through it, qualifying buyers can receive up to 4 percent of the first mortgage price in down payment assistance. The borrower is required to attend a free five-hour homebuyer education course in order to qualify.
• House Key Opportunity Program: Designed exclusively for first-time homebuyers, this state bond program requires borrowers to complete a homebuyer education course and work with a state-approved lender. The program is only available to those using certain down payment assistance programs, and there are exceptions for those purchasing new construction or a home in a community land trust.

Additional Washington mortgage resources

• Washington first-time homebuyer resources
• Washington loan limits by county
• Washington mortgage lenders
• Washington housing market overview
• How to buy a house in Washington