Not financial advice. Mortgage FV Calculator is a software calculator, not a personal-finance product or advisory service. It computes standard financial functions and displays the results for your convenience. Nothing here constitutes, or is intended to constitute, financial, investment, tax, legal, mortgage, credit, or insurance advice. Always consult a qualified professional before making any financial decision.
NPV of buying a home in Washington
Every cash flow of owning a median-priced Washington (WA) home — payments out, rent avoided, equity and sale proceeds in — discounted at 5% and compared with the same money invested elsewhere.
Negative NPV at this rate
At 6.75% on a 30-year loan with 10% down, the net present value works out to −$45,628, an internal rate of return of 4.49%. That means the same cash in a 5% alternative wins on these assumptions. Lower the price, lengthen the hold, or raise the rent you would otherwise pay, and the sign can flip.
Valuation
| NPV at a 5% discount rate | −$45,628 |
|---|---|
| NPV at the Fisher-adjusted real rate (2.44%) | $291,053 |
| IRR (nominal) | 4.49% |
| IRR in real terms | 1.94% |
The real row re-runs the same cash flows at the Fisher-adjusted discount rate — 2.44% once 2.5% inflation is removed from the 5% nominal hurdle. A lower hurdle values distant equity more highly, which is why the real figure is the larger of the two.
The inputs behind it
| Median home price | $620,000 |
|---|---|
| Loan amount | $558,000 |
| Principal & interest | $3,619/mo |
| All-in monthly (PITI + PMI) | $4,441/mo |
| Rent avoided by owning | $2,200/mo |
| Total interest over the term | $744,904 |
| Projected home value at payoff | $1,740,212 |
0.87% effective property tax, $1,400 annual insurance, 3% closing costs, 6% selling costs and 1% annual maintenance. Illustrative averages, not quotes.
What is specific to Washington
No state income tax, so mortgage interest deductions are worth only the federal rate to most buyers.
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| Lender | Best for | Highlight | Min. down | Apply |
|---|---|---|---|---|
| LendingTreePopular | Comparing multiple offers | Up to 5 lender offers in minutes | 3% | See rates |
| Credible | Soft-pull pre-qualification | Pre-qualify without a credit hit | 3% | See rates |
| Bankrate | Daily rate research | Live rate tables across major lenders | 3.5% | See rates |
| Rocket Mortgage | Fully online closing | Digital application and verification | 3% | See rates |
NPV in other states
- Alabama
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