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Colorado vs Washington:
Mortgage & Housing Costs

Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Colorado and Washington. Updated for 2026.

MetricColoradoWashington
Median Home Price$520K$580K
Property Tax Rate0.51%0.98%
Avg Closing Costs$7K$8K
Closing Cost %1.4%1.4%
Transfer Tax0.01%1.78%
Homeowners Insurance$3,200/yr$1,600/yr
First-Time Buyer Program
CHFA Down Payment Assistance
Up to $25,000 second mortgage
WSHFC Home Advantage
Up to $10,000 DPA
Verdict

Colorado wins 4 of 6 cost categories, making it the more affordable state for homebuyers overall. With a median home price of $520K and lower overall costs, Colorado offers meaningful savings compared to Washington. Both states offer first-time buyer programs — explore the state pages for full details.

Monthly Payment Comparison

Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI.

Colorado
Home Price$520,000
Down Payment (10%)$52,000
Loan Amount$468,000
Monthly P&I$2,958
Monthly Property Tax$221
Monthly Insurance$267
Monthly PMI$195
Total PITI$3,641/mo
Annual property tax: $2,652
Washington
Home Price$580,000
Down Payment (10%)$58,000
Loan Amount$522,000
Monthly P&I$3,299
Monthly Property Tax$474
Monthly Insurance$133
Monthly PMI$218
Total PITI$4,124/mo
Annual property tax: $5,684

The monthly payment difference is $483/month — thats $5,796/year or $174K over the life of a 30-year loan. Buying in Colorado is the more affordable option based on median home prices with identical loan terms.

Income Needed to Buy

Based on the 28% debt-to-income rule — your monthly housing payment should not exceed 28% of gross monthly income.

Colorado
$156K/yr
minimum household income
Washington
$177K/yr
minimum household income

To afford the median home in Washington, you need a household income of approximately $177K/year. In Colorado, you need $156K/year — less by $21K/year. That $21K income gap means Colorado is accessible to a significantly wider range of households.

Which State Is Right for You?

Home prices in Colorado and Washington are relatively close, with only a 10% difference ($60K). At similar price points, your decision should focus on the other cost factors: property taxes, insurance, closing costs, and the overall quality of life each state offers. Small percentage differences in tax rates compound over decades of homeownership.

Colorado has a moderate property tax advantage at 0.51% versus Washington's 0.98%. While the rate gap of 0.47% may seem small, it translates to an annual difference of approximately $3,032 when applied to each state's median home price. Over a typical homeownership period of 7-10 years, that adds up to $24K in savings.

Homeowners insurance is significantly cheaper in Washington ($1,600/year) compared to Colorado ($3,200/year). That's an extra $1,600 per year — or $133/month — eating into your budget in Colorado. Colorado's high insurance costs are often driven by severe weather risks (hurricanes, tornadoes, or wildfires), which also affect availability of coverage.

Both states offer down payment assistance for first-time buyers. Colorado's CHFA Down Payment Assistance provides Up to $25,000 second mortgage, while Washington's WSHFC Home Advantage offers Up to $10,000 DPA. These programs can significantly reduce your upfront costs and make homeownership accessible even if you haven't saved a full 20% down payment. Check eligibility requirements on each state's housing finance agency website — income limits and purchase price caps apply.

Key Takeaway

The bottom line: Colorado and Washington are broadly similar in housing costs, with only $483/month separating them in total PITI payments. In cases like this, your decision should be driven by lifestyle preferences — job opportunities, climate, proximity to family, and quality of life — rather than pure cost savings. Either state offers a reasonable path to homeownership.

Compare Other States

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Frequently Asked Questions

Is it cheaper to buy a home in Colorado or Washington?
Colorado is cheaper overall. The median home costs $520K compared to $580K in Washington, and the total monthly PITI payment is $3,641 versus $4,124. That works out to $483 less per month or $5,796 less per year in Colorado.
How much more are property taxes in Washington vs Colorado?
Washington has a property tax rate of 0.98% compared to 0.51% in Colorado. On the median home, that means Washington homeowners pay approximately $5,684/year in property taxes versus $2,652/year in Colorado — a difference of $3,032/year.
Which state has better first-time buyer programs, Colorado or Washington?
Colorado offers the CHFA Down Payment Assistance (Up to $25,000 second mortgage), while Washington has the WSHFC Home Advantage (Up to $10,000 DPA). Both programs aim to reduce upfront costs for first-time buyers. Eligibility depends on income limits, purchase price caps, and other criteria set by each state's housing finance agency.

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