When you buy a home in Washington with a conventional loan, your monthly payment is made up of several components: principal and interest (P&I), property taxes, homeowners insurance, private mortgage insurance (PMI) if your down payment is less than 20%, and any homeowners association (HOA) fees.

Sample loan details

  • Purchase price: $350,000
  • Down payment (10%): $35,000
  • Loan amount: $300,000
  • Term: 30 years
  • Interest rate (hypothetical fixed rate): 6% per year

Calculating principal & interest

Using the standard amortization formula, a $300,000 loan at 6% for 30 years yields a monthly P&I payment of about $1,798.

Adding other costs

  • Property taxes (average 1% of home value): roughly $292 per month
  • Homeowners insurance (estimate $1,200 per year): about $100 per month
  • PMI (0.5% of loan per year until 20% equity): about $125 per month
  • HOA fees (if applicable): varies, not included in this example

Estimated total monthly payment

Principal & interest: $1,798

Taxes + insurance + PMI: $517

Estimated total: approximately $2,315 per month

Washington-specific points

  • Washington does not levy a state income tax, which can affect your overall affordability.
  • Most closings in the state are handled by title companies rather than attorneys.
  • The Washington State Housing Finance Commission offers first-time-buyer programs that can help with down-payment assistance.

This article provides general information and should not be considered personalized financial or loan advice.