WASHINGTON MORTGAGE REFINANCE RATES TODAY
Current mortgage refinance rates in
Washington.
Current mortgage refinance rates in
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Compare mortgage refinance rates in Washington.
Key Points
• Washington mortgage refinance interest rates are influenced by the 10-year U.S. Treasury Note and housing inventory levels, among other economic factors.
• A mere 1% drop in the interest rate on a $300,000 mortgage can save you money every month and put tens of thousands of dollars back in your pocket over the course of a 30-year loan.
• Washington homeowners have a range of mortgage refi options to choose from, including conventional, cash-out, FHA, VA, 15-year, and adjustable-rate mortgages, each with their own qualities to consider.
• To lock in the best mortgage refinance rate in Washington, take good care of your credit score, trim your debt-to-income ratio, and compare offers from different lenders.
• When comparing offers, look at a loan’s annual percentage rate (APR), not only its interest rate.
Intro to Mortgage Refi Interest Rates
Mortgage refinancing can be a makeover for your monthly budget and help you achieve your long-term financial goals. Whether you’re aiming to reduce your monthly payments, pay off your loan sooner, or tap into your home’s equity, knowing how to navigate mortgage refinance rates is key. This guide is your ticket to understanding how these rates are determined and how to secure the best one available.
💡 Quick Tip: Some lenders offer a so-called no-closing-cost refinance. However, that usually means either rolling the closing costs into the new mortgage principal or exchanging them for a higher interest rate.
Where Do Mortgage Refinance Interest Rates Come From?
Current mortgage rates are influenced by both economic and personal financial factors. The big economic factors that come into play include bond market conditions, housing inventory, and the job market. The strongest indicator of the direction mortgage interest rates are headed is the performance of the 10-year U.S. Treasury Note. When rates on the note rise, mortgage interest tends to rise also.
Another factor is the housing market. When the market cools, lenders may lower rates to keep customers borrowing. Then there is the overall economy: A strong jobs market and economic growth can lead to rising rates, while a recession is usually accompanied by lower interest rates.
How Interest Rates Affect Home Affordability
The interest rate you obtain for your new home loan plays a pivotal role in your mortgage refinance. Alongside your loan amount and loan term, your interest determines your monthly and total costs for the loan. The chart below shows how changing rate or term on a $300,000 loan affects monthly payments and total costs. Over time, that seemingly small one-percentage-point change from a 6.00% to 7.00% rate on a 30-year loan can translate to more than $70,000 in extra costs. So, yes, every digit after the decimal counts.
| Interest Rate | Loan Term | Monthly Payment | Total Interest |
|---|---|---|---|
| 6.00% | 30-year | $1,799 | $347,515 |
| 6.00% | 15-year | $2,532 | $155,683 |
| 7.00% | 30-year | $1,996 | $418,527 |
| 7.00% | 15-year | $2,697 | $185,367 |
Why Refinance in Washington?
Refinancing your mortgage can be a savvy financial move, especially when current mortgage refinance rates are lower than your existing rate. But there are other reasons to swap out your loan.
Common Reasons to Refinance a Mortgage
• You qualify for a lower mortgage refinance rate because of improved credit or an interest rate drop in the market.
• You want to alter your repayment term to either reduce monthly costs or pay off the loan more swiftly (the latter often means larger monthly costs, even if you can score a lower rate).
• You need to tap into your home equity to finance a big expense, like a renovation or your child’s education, or to pay off higher-interest debt.
• Your adjustable-rate mortgage is about to change, and you want to switch to a fixed-rate loan.
• You’ve got an FHA loan (backed by the Federal Housing Administration) with at least 20% equity, and you’re ready to shake off the FHA mortgage insurance premium you’ve been paying.
If you’re wondering how soon can you refinance a mortgage, it’s generally best to have 20% home equity before you embark on a refinance, especially if you are doing a cash-out loan (more on that below).
How to Get the Best Available Mortgage Refi Interest Rate
Ready to learn how to refinance a mortgage and get your best available rate? Here are the first steps you should take, before you even start to look for a new loan.
• Help build a strong credit score by paying bills on time and avoiding new debt.
• Keep your debt-to-income (DTI) ratio under 36%. To compute your DTI ratio, add up your monthly debts, such as student loans or an auto loan, and divide by your gross monthly income. Multiply by 100.
• Consider whether you have cash on hand that you could use to purchase discount points, also known as mortgage points, to lower your interest rate. Each point generally costs 1% of your principal amount.
• Examine your monthly budget to see if you have room to take on a higher mortgage payment, which would allow you to secure a shorter term loan. The shorter the term, the less interest you’ll likely pay over the long haul — and the sooner you’ll be free of mortgage debt.
Understand Trends in Washington Mortgage Interest Rates
If you are waiting for interest rates to drop and you have a certain magical number in mind, it’s a good idea to check in with prevailing interest rates to make sure your figure is realistic. Washington interest rates follow national patterns, as you will see below.
Historical U.S. Mortgage Interest Rates
Looking at national average mortgage rates over a long time period will help you understand how unusual it is to see very low rates of less than, say, 4.00%. The graphic shows more than a half-century of rates. They dropped to historic lows of around 3.00% in 2020. But rates that low are rare.
Historical Interest Rates in Washington
Mortgage refinance rates in Washington typically move in tandem with national trends, consistently sitting just under the national average. As you can see, the average changes by fairly small increments from year to year — so if you’re waiting for rates to fall by a couple percentage points, it’s important to face the fact that such a significant shift is unusual.
| Year | Washington Rate | National Rate |
|---|---|---|
| 2000 | 7.59 | 8.14 |
| 2001 | 6.85 | 7.03 |
| 2002 | 6.31 | 6.62 |
| 2003 | 5.50 | 5.83 |
| 2004 | 5.55 | 5.95 |
| 2005 | 5.71 | 6.00 |
| 2006 | 6.46 | 6.60 |
| 2007 | 6.40 | 6.44 |
| 2008 | 5.97 | 6.09 |
| 2009 | 5.00 | 5.06 |
| 2010 | 4.77 | 4.84 |
| 2011 | 4.44 | 4.66 |
| 2012 | 3.63 | 3.74 |
| 2013 | 3.78 | 3.92 |
| 2014 | 4.07 | 4.24 |
| 2015 | 3.81 | 3.91 |
| 2016 | 3.61 | 3.72 |
| 2017 | 3.95 | 4.03 |
| 2018 | 4.46 | 4.57 |
Choose the Right Mortgage Refi Type
Once you have a grasp of the highs and lows of mortgage rates, it’s time to explore your options for mortgage refinancing in Washington. Here are some of the more popular ways to refinance:
Conventional Refi
A conventional refinance, also known as a rate-and-term refi, gives you the freedom to adjust your interest rate or loan term (or both). Conventional refis often come with slightly higher mortgage refinance rates than their government-backed counterparts, such as a VA loan backed by the U.S. Department of Veterans Affairs. But conventional loans offer lots of flexibility. Two common options include a 15-year mortgage and an adjustable-rate mortgage.
15-Year Mortgage Refi
It’s no secret that 15-year mortgage refinance rates are often lower than the 30-year variety. Consider this: A 30-year $500,000 loan at 7.50% would mean a monthly payment of around $3,496 and total interest paid of about $758,586 over the life of the loan. Refinance to a 15-year mortgage at 7.50%, and your monthly payment would increase to about $4,635. However, you’d be looking at savings of more than $400,000 in interest over the life of the loan.
Adjustable-Rate Mortgage Refi
Adjustable-rate loans are attractive to some refinancers because they usually start with a lower mortgage refinance rate than fixed-rate loans. If you currently have a 30-year fixed-rate mortgage, but think you might move out of your home before the loan term is up, you could consider refinancing to an adjustable-rate mortgage (ARM). (Some borrowers, on the other hand, prefer to refinance out of an ARM into a fixed-rate loan.)
Cash-Out Refi
A cash-out refinance is your ticket to unlock the potential in your home equity. Your new loan pays off your old mortgage and provides you with a lump sum to use for renovations, education costs, or other big expenses.
FHA Refi
FHA loans, backed by the Federal Housing Administration, often come with lower mortgage refinance rates — maybe a full percentage point lower. Some FHA refinance options, like FHA Simple Refinances and FHA Streamline Refinances, are only available to those who already have an FHA loan. However, two types of FHA refinance options are available to those who don’t currently have an FHA loan: an FHA cash-out refinance or an FHA 203(k) refinance, which is a renovation or rehabilitation loan.
VA Refi
VA loans, backed by the U.S. Department of Veterans Affairs, consistently offer some of the most competitive mortgage refinance rates available in the financial market. To qualify for a VA refinance, also known as an interest rate reduction refinance loan (IRRRL), you must currently have a VA loan. This type of refinance has the potential to significantly lower your monthly payments and generate substantial interest savings over the life of the loan.
Compare Mortgage Refi Interest Rates
Securing a competitive mortgage refinance rate and understanding mortgage refinancing costs more generally can save you thousands of dollars. Here are some tips:
• Shop around with different lenders to compare rates and terms. Many lenders will have an online prequalification process that lets you know, based on a few questions you answer, what rate you might obtain.
• Compare each loan’s annual percentage rate (APR), which includes the interest rate, fees, and discount points. Don’t just look at interest rates — they won’t tell the whole story.
• Weigh the trade-offs between rate and fees; a lower rate might mean higher costs elsewhere.
• Assess whether the savings are worth the closing costs and any adjustments to your loan term.
An online refinance calculator will be helpful as you’re comparing loan offers.
Use an Online Refinance Calculator
An online refinance calculator can help you get an initial look at how various refinance options will affect your monthly costs and total interest paid. Online calculators are helpful at all phases of the homebuying and ownership process, in fact. Here are a few of our favorites:
Run the numbers on your home loan.
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Mortgage calculator
Punch in your home loan amount and a new interest rate, and we’ll estimate your payoff date.
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Down payment calculator
Enter a few details about your home loan and we’ll provide your monthly mortgage payment.
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Home affordability calculator
Provide us with a few details and see how much you can afford to spend on a home purchase.
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
The Takeaway
Refinancing your mortgage in Washington can be a smart financial move, potentially helping you to secure a lower interest rate, reduce your monthly payments, or obtain funds to cover a major life expense. But it’s important to weigh the costs and benefits of refinancing on your personal financial situation. That means considering the cost of closing fees and how long it will take to recoup costs. You can also help yourself get the best deal on a refinance by tidying up your credit score, reducing your debts, and shopping around for the best refinance rates from multiple lenders.
SoFi can help you save money when you refinance your mortgage. Plus, we make sure the process is as stress-free and transparent as possible. SoFi offers competitive fixed rates on a traditional mortgage refinance or cash-out refinance.
A mortgage refinance could be a game changer for your finances.
FAQ
Can I refinance when rates are lower?
When interest rates drop is indeed a good time to refinance your home loan, but it’s vital to weigh the potential savings against the costs involved. One way to make sure the refi is worth the work and expense it requires is to look at how long you would need to stay in your home before the savings on interest outweigh the fees associated with the refi.
Can I lower my interest rate without refinancing my home?
It’s difficult to lower a mortgage interest rate without a refinance, but you can reduce your monthly loan costs by undertaking a mortgage recast. A recast involves making a lump-sum payment toward your principal balance. Your lender then “recasts” your monthly payment amount to reflect the lower principal. If you’re facing financial hardship, you could also explore a loan modification. Of course, if you have a solid credit score and stellar payment history, you can always ask your lender to give you a better rate, but the lender is likely to suggest a refi or recast instead.
Can I get cash out of my house without a refinance?
You can tap into your home’s equity to get cash without a refinance by getting a home equity line of credit (HELOC) or a home equity loan. Either of these can be a great way to pay for home improvements, consolidate debt, or cover other expenses. Technically, both a HELOC and a home equity loan are considered a second mortgage (assuming you still have your first mortgage), so it’s important to find the most competitive interest rate during the application process.
Do you have to pay closing costs when you refinance?
Closing costs are an important part of the refinancing process. They usually are somewhere between 2% and 5% of your loan amount. So, for a $400,000 refinance, you might be paying $8,000 to $20,000. The amount you’ll pay can fluctuate based on a variety of factors, such as your lender, the type of loan you want, and where you live. Understanding these potential costs can help you make informed financial decisions and plan your budget accordingly.
SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
²SoFi Bank, N.A. NMLS #696891 (Member FDIC), offers loans directly or we may assist you in obtaining a loan from SpringEQ, a state licensed lender, NMLS #1464945.All loan terms, fees, and rates may vary based upon your individual financial and personal circumstances and state.You should consider and discuss with your loan officer whether a Cash Out Refinance, Home Equity Loan or a Home Equity Line of Credit is appropriate. Please note that the SoFi member discount does not apply to Home Equity Loans or Lines of Credit not originated by SoFi Bank. Terms and conditions will apply. Before you apply, please note that not all products are offered in all states, and all loans are subject to eligibility restrictions and limitations, including requirements related to loan applicant’s credit, income, property, and a minimum loan amount. Lowest rates are reserved for the most creditworthy borrowers. Products, rates, benefits, terms, and conditions are subject to change without notice. Learn more at SoFi.com/eligibility-criteria. Information current as of 06/27/24.In the event SoFi serves as broker to Spring EQ for your loan, SoFi will be paid a fee. Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article. Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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More refinance resources.
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How Much Does It Cost to Refinance a Mortgage?
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How to Refinance a Home Mortgage Loan
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7 Signs It’s Time for a Mortgage Refinance