Compare different loan terms using your home price of $350,000 with $70,000 down at 6.8%.
15-Year Fixed
$2,401/mo
Total interest: $152,141
Total cost: $432,141
Save $221,646 vs 30-year
20-Year Fixed
$2,088/mo
Total interest: $221,025
Total cost: $501,025
Save $152,762 vs 30-year
30-Year Fixed (Current)
$1,816/mo
Total interest: $373,787
Total cost: $653,787
Lowest monthly payment
Pro
Professional Simulator
Complete financial model: closing costs breakdown, rent vs buy, inflation-adjusted returns, true cost of ownership
years
%
%
%
%
10-Year Net Gain/Loss
-$173,685
After selling in year 10 at $493,710
Total Paid Over Hold Period
$398,929
Down + closing + all payments
Home Value at Sale
$493,710
3.5%/ yr appreciation
Selling Costs
$29,623
6% of sale price
Net Sale Proceeds
$225,244
After mortgage payoff + selling costs
Real Interest Rate
4.25%
Nominal 6.8% - inflation 2.5%
Real Monthly Payment
$1,254
Today's dollars (mid-loan)
State Property Tax
$5,600
TX rate: 1.6%
True Monthly Cost
$2,499
PITI + HOA + maintenance
Buying a Home in Washington DC
Washington DC is one of the most desirable and expensive urban housing markets in the country. With an average home price of $640,000, the District's real estate reflects its concentration of federal government workers, lobbyists, law firms, think tanks, NGOs, and a growing tech sector. The market is defined by its distinctive neighborhoods — from the historic elegance of Georgetown and Capitol Hill to the revitalized corridors of Shaw, Columbia Heights, and H Street NE, each neighborhood has its own character and price tier.
DC's property tax rate of 0.55% is surprisingly low for such an expensive market, and the Homestead Deduction reduces the taxable assessed value by $84,000 for primary residents. However, the recordation tax — up to 1.45% of the purchase price paid by the buyer — can significantly add to closing costs. The remarkable exception: qualifying first-time homebuyers in DC are exempt from both the recordation and transfer taxes, saving up to $18,500 on a $640,000 purchase. This makes the DC first-time buyer program one of the most valuable in the country in terms of dollar impact.
The Home Purchase Assistance Program (HPAP) is another exceptional DC benefit — providing up to $202,000 in 0% interest deferred gap financing for qualifying buyers, repayable only when the home is sold or refinanced. For income-qualifying buyers, HPAP can cover most of the down payment, making homeownership accessible in one of the most expensive markets in the country. DC is designated a high-cost area with conforming loan limits near $1.15 million, allowing conventional financing at most DC price points.
Key Housing Facts for Washington DC
Average home price: $640,000
Average effective property tax rate: 0.55%
Average homeowners insurance: $1,200/year
Homestead Deduction: $84,000 reduction in taxable value for primary residents
First-time buyers: exempt from recordation and transfer taxes (income/price limits apply)
High-cost area conforming loan limit: ~$1,209,750
Most expensive areas: Georgetown, Dupont Circle, Kalorama, Capitol Hill
More accessible areas: Brightwood, Petworth, Anacostia, Congress Heights
Frequently Asked Questions
Washington DC's average effective property tax rate is approximately 0.55%, well below the national average. On a $640,000 home, you'd pay roughly $3,520 per year in property taxes. DC's Homestead Deduction reduces the taxable assessed value of a primary residence by $84,000, providing significant savings for owner-occupants. The Senior Citizen or Disabled Property Tax Relief program offers additional reductions for qualifying residents.
DC Housing Finance Agency (DCHFA) offers the Home Purchase Assistance Program (HPAP) providing up to $202,000 in gap financing (with $4,000 in closing cost assistance) as a 0% interest deferred loan repayable at time of sale. The DC Open Doors program offers below-market rates plus up to 3% in down payment assistance. Income and purchase price limits apply and income limits for HPAP are generous relative to the program's assistance level.
Washington DC is designated a high-cost area. For 2026, the conforming loan limit for a single-family home in DC is $1,209,750 — the maximum high-cost limit. This means buyers can access conventional (non-jumbo) financing at loan amounts well above the national baseline of $806,500, which is particularly important in a market where the average home price exceeds $640,000.
Closing costs in Washington DC are among the highest in the country. DC charges a recordation tax of 1.1% on purchases up to $400,000 and 1.45% above that, paid by the buyer. A transfer tax of 1.1–1.45% is also charged (paid by seller). First-time homebuyers in DC who qualify under income and price limits are exempt from recordation and transfer taxes, which is an extremely valuable benefit. Total buyer closing costs including taxes can run 3–5% of the purchase price.