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
Washington state's housing market is defined by the extraordinary influence of the Seattle metro — home to Amazon, Microsoft, Boeing, and one of the world's densest concentrations of tech talent and wealth. With an average home price of $580,000 statewide, Washington is one of the more expensive markets in the country, with the Seattle metro and Eastside communities like Bellevue, Redmond, and Kirkland commanding prices that rival San Francisco for comparable properties. Amazon's headquarters, Microsoft's campus in Redmond, and dozens of major tech companies create persistent, high-income demand that keeps Seattle-area housing highly competitive.
Washington's lack of a state income tax is a powerful financial benefit for high earners — a tech worker earning $250,000 in Seattle saves $15,000–$25,000 per year in income taxes compared to equivalent employment in California. This advantage attracts and retains talent, sustaining housing demand. Washington does levy a capital gains tax of 7% on investment gains over $250,000, but wages are untaxed.
Eastern Washington — Spokane, the Tri-Cities, Yakima — operates in a completely different market segment, with average prices in many communities well below $400,000. Spokane in particular has drawn attention from buyers priced out of the Seattle metro, with a growing tech and remote work presence. The Olympic and Cascade mountain communities, including Leavenworth, Bellingham, and Olympia, offer lifestyle-driven markets at varying price points.
Key Housing Facts for Washington
Average home price: $580,000
Average effective property tax rate: 0.87%
Average homeowners insurance: $1,300/year
No state income tax on wages
Most expensive markets: Bellevue, Kirkland, Redmond, Mercer Island
More affordable markets: Spokane, Tri-Cities, Tacoma suburbs, Olympia
Frequently Asked Questions
Washington's average effective property tax rate is approximately 0.87%, near the national average. On a $580,000 home, you'd pay roughly $5,046 per year in property taxes. Washington limits annual property tax levy increases to 1%, though individual property assessments can change more dramatically. There is no state income tax, which significantly reduces the overall tax burden for homeowners.
Washington State Housing Finance Commission (WSHFC) offers the Home Advantage program with below-market rates and the HomeChoice program for buyers with disabilities. Down payment assistance is available through the Home Advantage DPA program (up to 4% of the first loan amount) and various local programs. The House Key Opportunity program targets lower-income buyers. Income and purchase price limits apply.
Washington has no state income tax on wages, making it one of seven states with no broad-based personal income tax. This is a major financial benefit for high-income technology workers in the Seattle area. Washington does have a capital gains tax of 7% on gains over $250,000 (enacted in 2021), which primarily affects high-income investors. The absence of an income tax is a key reason Washington has attracted tech talent and corporate headquarters.
The Seattle-Bellevue-Redmond metro is Washington's dominant and most expensive market, driven by Amazon, Microsoft, Boeing, and a dense tech sector. Eastside communities like Bellevue, Kirkland, and Redmond often command prices $100,000–$200,000 above comparable Seattle neighborhoods. Spokane and the Tri-Cities (Richland, Kennewick, Pasco) in eastern Washington offer dramatically more affordable alternatives. Vancouver, across from Portland, has also grown significantly as a lower-priced alternative for Portland-area workers.