Best HELOC Rates in Washington

Key Takeaways

blueCheck icon

Higher loan-to-value (LTV) ratios lead to higher rates. The average APR for a HELOC in Washington with an 80% LTV is 8.8%, compared with 9.4% for a 90% LTV.

blueCheck icon

HELOC rates vary by city in Washington. University Place has an average APR of 7.6%, whereas Snoqualmie's is 11.8%.

blueCheck icon

Different lenders offer varying rates for the same loan types. First Financial Northwest Bank's average APR is 4.0%, whereas KeyBank National Association's is 11.8%.

Current HELOC Rates in Washington

Loading...

HELOC rates in Washington climbed from 4.5% in early 2021 to 9.2% by late 2023, with slight decreases to 9.1% in 2024. If this trend continues, consider locking in a rate soon to avoid potential cost increases.

HELOC Rates in Washington by LTV Ratio

HELOC rates in Washington vary based on your loan-to-value ratio and line limit. A lower LTV means more home equity, reducing risk for lenders. For example, with an 80% LTV, you’ve borrowed less against your home’s value compared with a 90% LTV, making you less likely to default on your HELOC.

The table below lets you filter between different loan amounts, helping you see potential qualifications:

Data filtered by:Results filtered by:
Line Limit:
Line Limit:$100,000
8.8%9.4%

HELOC Rates in Washington by City

HELOC rates in Washington vary across cities due to local housing markets and lender competition. For example, cities with stable real estate markets may offer lower rates due to reduced lender risk.

Use the table below to filter by city and see average APRs for $50K and $100K HELOCs.

Data filtered by:Results filtered by:
City:
City:Seattle
$100,0009.2%
$50,0009.3%

HELOC Rates in Washington by Lender

HELOC interest rates in Washington vary among lenders due to different pricing strategies and risk assessments. Understanding these differences can help you find competitive rates.

The table below highlights the five lenders in Washington offering the lowest average APRs, assisting you in comparing options.

First Financial Northwest Bank4.0%
Lewis Clark Credit Union7.5%
Idaho Central Credit Union8.0%
Wauna Federal Credit Union8.0%
America's Credit Union, A Federal Credit Union8.3%

HELOC rates today can vary between lenders even within the same city. Use the table below to filter by city and compare APRs, helping you find the best rate available.

Data filtered by:Results filtered by:
City:
City:Seattle
Umpqua BankCommercial Bank8.3%
Western Alliance BankCommercial Bank8.5%
HomeStreet BankCommercial Bank8.5%
Heritage BankCommercial Bank8.5%
Harborstone Credit UnionCredit Union8.5%
Gesa Credit UnionCredit Union8.5%
First Technology Federal Credit UnionCredit Union8.5%
First Horizon BankCommercial Bank8.5%
Boeing Employees Credit UnionCredit Union8.7%
BMO BANK NATIONAL ASSOCIATIONCommercial Bank8.9%
Peoples BankCommercial Bank9.0%
Seattle Metropolitan Credit UnionCredit Union9.0%
Verity Credit UnionCredit Union9.1%
Global Federal Credit UnionCredit Union9.3%
Bank of AmericaCommercial Bank9.6%
HSBC Bank USACommercial Bank9.6%
U.S. Bank National AssociationCommercial Bank9.7%
Banner BankCommercial Bank9.7%
Washington State Employees Credit UnionCredit Union10.1%
Sound Credit UnionCredit Union11.5%
KeyBank National AssociationCommercial Bank11.8%
COMPARING HELOC RATES IN WASHINGTON: BANKS VS. CREDIT UNIONS

HELOC rates in Washington vary between banks and credit unions, with banks typically offering higher rates. For instance, the best HELOC rate among commercial banks is 9.1%, compared to the 9.0% average APR offered by credit unions. Credit unions are not-for-profit institutions, which often allows them to provide slightly lower rates than traditional banks.

When choosing between the two, consider more than just rates. Banks might offer more convenience, while credit unions may excel in customer service and lower fees. It's also wise to check membership requirements for credit unions and any hidden fees or rate adjustment clauses with both lenders.

Ask the experts:

How do lenders assess risk when setting HELOC rates for different property types (e.g., primary residence vs. investment property), and how can borrowers mitigate higher rates for non-primary homes?

Credit & Mortgage Expert

All loans are about risk. The higher the risk, the higher your rate will be. With investment properties or second homes, since they are not your primary residence the risk is inherently higher in the eyes of the lender — for example, if someone falls on hard times, they are more likely to continue making timely payments on the home they live in rather than an investment or second home.

Usually, if you are taking a HELOC on an investment property, you are using those funds to improve the property or using it to buy another investment property. Having access to cash to make more cash is what investors do. They should always take into account the higher rates when making an investment decision. If successful, the higher rate won't be a problem.

HELOC Payment Calculator

HELOCs have become a popular tool for homeowners across the U.S. looking to tap into their home's equity. Use our Washington HELOC payment calculator to determine your monthly payments based on the amount drawn, APR and loan terms.

It also provides an amortization schedule, showing the division of payments between principal and interest over time. Understanding these details can help you manage your HELOC more effectively.

Washington HELOC Payoff Calculator

This HELOC payment calculator assumes that you take out one lump sum at the start of your interest-only period. Your actual payoff schedule will vary depending on your interest rate and market conditions.

$
%
years
years

Credit Line Information

Draw Period Payment

$0

Repayment Period Payment

$0

Credit Payoff Schedule for Home Equity Line

YEAR

Ending balance
Principal paid
Interest paid

How to Get the Best HELOC Rates in Washington

Finding the best HELOC rates in Washington can lead to substantial savings. To secure a competitive rate, consider these five strategies:

    excellentCredit icon

    Maintain a strong credit score

    Washington's average credit score is 735. While good, aiming higher can secure better rates from lenders.

    loanVsLoan icon

    Compare offers from multiple lenders

    Shopping around can reveal competitive rates and help negotiate better terms.

    discount icon

    Reduce your debt-to-income (DTI) ratio

    Lower debt-to-income (DTI) ratios show stability. Paying off debt can improve your chances for a lower rate.

    house2 icon

    Increase your home equity

    More equity means less risk for lenders, leading to lower rates. Consider paying down your mortgage or home improvements.

    noFee icon

    Review closing costs and rate caps

    Closing costs can affect expenses. Understanding rate caps helps manage HELOC adjustments.

HELOC Loan Rates vs. Home Equity Loan Rates in Washington

HELOC interest rates in Washington average 9.0%, compared to 8.1% for home equity loans. The higher rates for HELOCs are due to their variable rate structure, which can lead to increased costs in a rising interest rate environment.

  • HELOCs are flexible, revolving credit lines with variable rates that adjust with the market. In rising interest rate environments, HELOC rates can increase, potentially affecting homeowners' finances over time.
  • Home equity loans provide a lump sum with a fixed rate, offering stability throughout the loan term. They are ideal for situations where financial predictability is preferred over flexibility.

When deciding between these options, consider whether you prioritize the flexibility of a HELOC or the stability of a home equity loan. Assess your financial goals and risk tolerance to determine which product aligns best with your needs and evaluate your home's equity.

CONSIDERING A HELOC ALTERNATIVE? TRY A CASH-OUT REFINANCE

Cash-out refinance is a HELOC alternative that replaces your existing primary mortgage with a new, larger loan, providing access to cash. Unlike HELOCs or home equity loans, it creates a new primary mortgage.

For instance, if you have a loan backed by the Federal Housing Administration (FHA) and your home is valued at $300K with a $150K mortgage balance, an FHA cash-out refinance for $200K could provide $50K in cash, but your new loan payments will be based on $200K.

FAQ: Best HELOC Rates in Washington

What are the current HELOC rates in Washington, and how do they compare to national rates?
What fees are commonly associated with HELOCs in Washington?
How do HELOC rates in Washington compare to home equity loan rates?
How do HELOC Rates in Washington vary between banks and credit unions?
What's the best HELOC rate in Seattle? How does it compare to the current HELOC rate in Washington?

MoneyGeek examined 64 different banks and credit unions in Washington using S&P Global's SNL Depository Rates dataset to stay current on the latest home equity line of credit rates.

Loading...

This data is accurate as of October 16, 2024.

64Lenders Analyzed

About Zachary Romeo, CBCA


Zachary Romeo, CBCA headshot

Zachary Romeo is a certified Commercial Banking and Credit Analyst (CBCA), and the Head of Loans and Banking at MoneyGeek. Previously, he led production teams for some of the largest online informational resources in higher education, with over 13 years of experience in editorial production.

Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt and helping others do the same through people-first content.