The Pacific Northwest has become an increasingly popular place to live, Washington in particular. Mountains, lakes, decent weather, and a beautiful coastline offer a little bit of something for everyone. Washington also offers its residents the amazing resources that come from having one of the best state universities in the nation, the University of Washington. Seattle has become one of the hippest and most progressive growing cities in the nation, as well, which is another reason why Americans are moving to Washington. The amazing benefits of living in Washington also explain why, in the last ten years, housing prices have risen. More and more Washington residents have been forced to live from paycheck-to-paycheck as a result of carrying the burden of their mortgage payment each month. This, however, does not have to be the case. Refinancing can offer homeowners freedom from being strapped each month by decreasing monthly payments, and possibly tapping into that much needed home equity. Refinancing is basically the process of obtaining a loan that covers the remaining balance on your current mortgage. This allows homeowners access to lower interest rates and newly developed terms and conditions for loans.
Quick Washington Housing Facts:
- Percent of homeowners in Washington: 64.6%
- Percent of renters in Washington: 35.4%
- Median annual income in Washington: $46,863
- Average credit score in Washington: 691
- Best Washington city to live in: Bainbridge Island, WA
- Median Washington home value: $168,300
When to Refinance in Washington
Knowing when to refinance is really the trick to getting the best that this option has to offer. First, it is important to remember your purpose for refinancing: to save money. With that said, you do not want to do anything that will cause you to lose money. It is important to remember what rates make refinancing worthwhile. In the event that current rates are less than what you are paying by 1.5% to 2%, you will want to go ahead and refinance; otherwise, the process will cost you money in both the short and the long-term. It is also important to be aware of any closing costs associated with the new loan that you obtain. Many agencies charge thousands of dollars to complete your refinancing package, so be sure to check into what those charges are prior to signing. Finally, be sure to calculate the point at which you will break even on your loan, and make sure that you stay in your home after that point.
How much house can I afford in Washington
Because of the high cost of housing, one of the biggest problems facing Washington’s homebuyers is figuring out how much house you can afford. We have some great mortgage calculators that can help you figure how much home will fit into your monthly budget. Don’t forget there are many other home options out there specifically for Washington’s residences. We work with local and national lenders to make sure that you get the best rate possible.
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