Washington, DC (also known as the District of Columbia) is the capital of the United States where the 3 branches of federal government are centered. Located along the Potomac River between Maryland and Virginia, DC is about 68 square miles and has nearly 600,000 residents (plus many commuters).
Washington, DC is a planned city divided into 4 major quadrants and plentiful with monuments, museums, foreign embassies, research facilities, and media markets. Homebuyers and homeowners in the District of Columbia should be aware of current housing market conditions and stay informed about Washington, DC mortgage rates.
Washington, DC mortgage rates (like national mortgage rates) have been steadily falling since the financial crisis that began several years ago. Prospective homebuyers may find that Washington, DC mortgage rates have reached historically-low levels. In addition, current homeowners may be able to benefit from low Washington, DC mortgage rates by refinancing their home loans.
Your Washington, DC mortgage rate will be influenced by a number of important factors ― including your credit history, employment status, income, and debts. Washington, DC mortgage rates may be fixed or adjustable, depending on the type of mortgage loan you obtain. Also note that your loan may come with extra costs (such as mortgage application fees and settlement costs).
Declining Washington, DC mortgage rates have inspired many homeowners to look into mortgage refinancing. To refinance, you must provide the mortgage lender with proof of your income, assets, debt obligations, credit score, and home equity. If your loan exceeds 80% of your home’s value (determined by a property appraisal) you may need to pay for mortgage insurance.
Low Washington, DC mortgage rates have prompted many homeowners to refinance their mortgage loans. However, you must be sure that this is the right strategy for you and your personal situation. It’s usually recommended that you refinance only if the new Washington, DC mortgage rate is at least 1% lower than your current mortgage rate. Otherwise, when you consider lender fees and closing costs, a refinance may not be worthwhile.
The chart below provides Washington, DC mortgage rates for refinancing a home loan. It’s advised that you shop around and compare offers from different lenders before making any final decisions. Remember that Washington, DC mortgage rates are continually changing, and it’s in your best interest to stay informed.