If you live in the Evergreen State and are thinking about refinancing your mortgage in the near future, here’s an overview of your available options.
Current 30 year-fixed mortgage refinance rates are averaging: 7.54% Current average rates are calculated using all conditional loan offers presented to consumers nationwide by LendingTree’s network partners over the past seven days for each combination of loan program, loan term and loan amount. Rates and other loan terms are subject to lender approval and not guaranteed. Not all consumers may qualify. See LendingTree’s Terms of Use for more details.
The current average rate for a 15-year fixed mortgage refinance is: 6.92% Current average rates are calculated using all conditional loan offers presented to consumers nationwide by LendingTree’s network partners over the past seven days for each combination of loan program, loan term and loan amount. Rates and other loan terms are subject to lender approval and not guaranteed. Not all consumers may qualify. See LendingTree’s Terms of Use for more details.
See whether refinancing makes sense for you using our mortgage refinance calculator.The mortgage rate forecast for 2025 predicts mortgage rates will remain steady in the 6% to 7% range. Despite three rate cuts from the Federal Reserve in late 2024, 30-year mortgage rates have not followed. This plus the fact that home prices have not fallen make it tough for homebuyers to invest in the market, especially first-time homebuyers with no equity.
For now, the best course of action potential homebuyers can take is to work on improving their financial eligibility to qualify for the lowest rates. Read our recommendations below to see how you can get the best rates on your Washington home loan.
Market conditions are only one of the factors that determine mortgage rates. In addition, there are things that you can do financially to ensure that you’re given the best mortgage rate possible by your lender, including:
When should I lock in my mortgage rate?Once you apply for a loan and your application has been approved, it’s time to ask your lender about a mortgage rate lock. Locking in your rate guarantees that it’ll stay the same from the time you agree to hold firm until you’re ready to sit at the closing table.
Fortunately for Washington’s first-time homebuyers and repeat buyers alike, the Washington State Housing Finance Commission offers a variety of programs aimed at making purchasing a home more affordable.
Low-to-moderate income borrowers who are thinking of buying a single-family home, townhome, condo or manufactured home may benefit from the state’s Home Advantage Program. This program combines low-interest, 30-year fixed-rate loans with up to 4% in down payment assistance funds.
Borrowers must:
Complete a qualifying homebuyer education seminar
Must not exceed the $180,000 maximum annual income limit
Work with a participating lender
First-time homebuyers and repeat buyers — who are willing to purchase in specific target areas — can combine the state’s low-interest mortgage offerings with a second mortgage they can use to help cover the upfront costs of buying a home.
Borrowers must:
Meet certain income and purchase price limits
Complete a homebuyer education seminar
Be enrolled in a participating down payment assistance program
Low-to-moderate income borrowers who have a disability or who live with a family member who has a disability may qualify for a low-interest, payment-deferred second mortgage. The second mortgage, which must be combined with a Home Advantage or House Key loan, has a 1.00% interest rate and is worth up to $15,000 in down payment assistance funds.
Borrowers must:
Be disabled or live with a family member who has a disability
Be a first-time homebuyer or purchase within a designated target area
Meet certain income limits
→ Washington conventional loans: If you have a strong financial profile — particularly a higher credit score and low DTI ratio — you may want to consider applying for a conventional loan. These loans are typically thought to be the most sought-after mortgages because they meet the minimum requirements set by Fannie Mae and Freddie Mac.
→ Washington FHA loans: In contrast, FHA qualifying requirements are usually less stringent than the eligibility requirements for conventional loans. For example, you’ll only need to make a 3.5% down payment if you have at least a 580 credit score. That said, you can qualify with a credit score as low as 500, as long as you’re prepared to make a 10% down payment.
→ Washington VA loans: Eligible military borrowers in Washington State might want to take advantage of the benefits provided by VA loans. For instance, these loans don’t impose down payment or mortgage insurance requirements. However, it’s important to be aware that individual lenders may still ask you to meet their own unique eligibility criteria.
→ Washington streamline refinances: Borrowers with an existing FHA or VA loan can take advantage of a simplified refinance process, provided that they intend to keep that same loan type. Both the FHA streamline refinance and VA interest rate reduction refinance loan (IRRRL) give you the chance to refinance your home loan while meeting fewer requirements and filling out less paperwork.
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