How Much Will Your Mortgage Be in Washington?
Located in the northwest region of the U.S. is the wealthy state of Washington. Nicknamed the Evergreen state, Washington is the sixth most expensive state in the country with a strong housing market. Home of temperate rainforests, mountain ranges and the beautiful city of Seattle, Washington continues to grow in population and popularity.
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Factors That Can Affect Your Washington Mortgage Calculations
Home Prices in Washington
With a population of approximately 7.6 million residents, making it the 13th most populous state in the U.S, Washington is one of the wealthiest states in the country. Homes in Washington have a median list price of $415,000 with median sales of $408,400 based on information collated in March 2020. The market is strong with property prices rising 6.6% over the past year.
The state’s largest and most popular city if Seattle. Homes in Seattle have a median list price of $689,900 and have gone up 2.2% over the past year. The median price of homes sold in Seattle is higher than the list price at $705,600.
Southwest of Seattle is the state capital city of Olympia where property prices are significantly less. The median price of homes listed is $350, 000 while the median price of homes sold is higher at $356,200. Home values in Olympia have gone up 7.4% over the past year.
East of the state near the border of Idaho is the city of Spokane. The average price of homes currently listed is $259,972 with an average sale price of $260,800. Home values have risen 13.1% over the past year and are predicted to increase 1.4%
Property Taxes in Washington
Washington has an effective property tax rate of 1.03%. This is slightly below the national average of 1.08%.
Washington Job Stats to Consider
Washington has a strong economy, growing at a rate of 5.7% every year, which is the fastest rate in the U.S. The state is the birthplace of Starbucks, Amazon, Microsoft, and Costco. It also leads the country in apple, hops, and cherry production.
The median household income recorded in Washington is $74,073, far above the national average of $61,937, based on information collected form the Census ACS 1-year survey in 2018. This has also risen over the past few years. The unemployment rate in Washington is higher than the national average of 3.6%. In January 2020 it was recorded as 3.9%, according to information gathered by the Department of Numbers.
Washington has no personal income tax. However, the state has some of the highest sales taxes in the country. That state sales tax sits at a rate of 6.5% with counties and cities charging an additional local sales tax of up to 3.1%. Groceries and prescription drugs are exempt from this.
Job Stats (Civilian Labor Force, Employment, Unemployment)
Other Washington Costs That Can Affect Washington Mortgage Calculations
Homeowners Insurance in Washington
The average homeowner in Washington pays $955 annually, which is surprisingly low considering the state is ranked the sixth most-expensive. Most premiums will cover theft, lightning, hail, wind, smoke damage, and more. Washington experiences less damaging weather than other U.S. states with most insurance claims being for wind, hail, fire, or lightning.
Earthquakes can occur in the state and most insurance policies will not cover this. For an additional cost, earthquake insurance can be purchased to protect your home. Floods are also a threat in the state. For flood insurance, contact the National Flood Insurance Program (NFIP).
Homebuyers can expect to pay 1% to 3% of the final purchase price in closing costs in Washington.
Title insurance protects the owner and the mortgage lender against any claims that might incur with the property’s title. This could be related to title problems that should have been discovered in the public records but may have been overlooked at the time of purchase, even with the most complete examination. Your lender will usually require a policy that equals the amount of the loan. Title insurance is a one-time cost that will depend on the price of your home.
Real Estate Transfer Tax
Washington imposes a real estate transfer tax on properties at a rate of 1.28%. Almost all counties and municipalities levy an additional tax between 0.25% and 0.5% in most local areas.
A home inspection is typically required by the mortgage lender to assess the property to ensure it is structurally sound before final sale. Costs of the inspection will depend on the square footage of the home and location. In Washington, they will typically cost between $280 and $700 for larger properties. General inspections cover the assessment of foundation, roofs, basements, plumbing, heating and cooling systems, and electrical aspects of the home. Additional tests for mold, radon or termite can be carried out for an added cost.