Home Equity Loan Rates in Washington

The equity in your home that you can access and borrow is known as tappable equity. A home equity loan (HEL) can help you maximize your home equity, whether you're looking to fund home improvement projects or consolidate debt.

Washington's home equity loan rates are higher than national averages — 8.0% APR for 10-year and 8.1% for 15-year terms, compared to 7.7% and 7.9% nationally. We've compiled detailed insights on current home equity loan rates in Washington, including city-specific rates, top lenders and tips on securing the best rates for using your home's equity.

Key Takeaways

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Higher LTV ratios lead to higher rates. The average APR for a 15-year HEL in Washington with an 80% LTV is 8.1%, compared to 8.3% for a 90% LTV.

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HEL rates vary by city in Washington. For example, for 15-year loans, Long Beach has an average APR of 6.4%, whereas Newcastle's is 12.0%.

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Different lenders offer varying rates for the same loan types. Washington Trust Bank's average APR is 4.8%, whereas KeyBank National Association's is 11.9%.

MoneyGeek examined 34 different banks and credit unions in Washington using S&P Global's SNL Depository Rates dataset to stay current on the latest home equity loan rates.

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This data is accurate as of November 2024.

34Lenders Analyzed

Current Home Equity Loan Rates in Washington

The current average APR for a 15-year home equity loan in Washington is 8.1%, though several factors might affect what lenders offer. For instance, a higher credit score typically leads to a lower APR, while a larger loan amount might increase it. Repayment terms are another factor to consider. Check the table below to compare the average APRs of home equity loans in Washington across different loan terms.

10Year8.0%
15Year8.1%
5Year7.7%

Interest rates for a home equity loan change daily. Keeping track of these rates can help you pay less in interest over the life of the loan, saving you money. If you have high-interest debts, a home equity loan at a lower rate can help you consolidate those debts and reduce your overall interest payments.

For instance, a 15-year home equity loan with an 8.1% APR has a monthly payment of $481 and a total interest of $36,529. In contrast, a 10-year loan with an 8.0% APR has a monthly of $607 and a total interest of $22,797.

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HOME EQUITY LOANS VS. HELOCS IN WASHINGTON

Home equity loans and home equity lines of credit (HELOC) are popular options for homeowners to tap into their home's equity. In Washington, home equity loans have fixed rates, averaging 8.0%, while HELOC rates in Washington are variable, averaging 8.7%.

Fixed rates mean consistent monthly payments, providing financial predictability. Variable rates can start lower but may increase, leading to higher costs over time. Understanding the differences between home equity loans and HELOCs can help you decide which option aligns better with your financial goals.

Home Equity Loan Rates by LTV Ratio

The rate you qualify for depends on your loan-to-value ratio, which measures how much you owe on your mortgage compared to your home's appraised value. To calculate your LTV ratio, divide your current mortgage balance by your home's appraised value and multiply by 100. For example, if your home is valued at $300,000 and you owe $240,000, your LTV ratio is 80%.

A higher LTV ratio presents a greater risk to lenders, resulting in higher rates. In Washington, the average APR of a 15-year equity loan with an LTV ratio of 80% is 8.1%, compared to 8.3% for an LTV ratio of 90%. Check the table below to see what rates you might qualify for based on your LTV ratio and explore how average home equity loan rates vary.

Data filtered by:Results filtered by:
Repayment Terms:
Repayment Terms:10Year
8.0%8.4%

Home Equity Loan Rates by City in Washington

Average APRs vary between cities in Washington. In larger or more densely populated cities, more lenders compete, which can lead to lower interest rates. Conversely, cities with higher living costs may see slightly higher rates as lenders face increased operational expenses.

In Washington, Long Beach has an average APR of 6.4%, while Newcastle's is 11.9%. Below is a table showing the cities in Washington and their average APRs for home equity loans with different terms.

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City:
City:Seattle
10Year8.7%
15Year8.9%
5Year8.5%

Home Equity Loan Lenders in Washington

Home equity loan rates in Washington can vary widely between lenders, influenced by their policies and assessments. For instance, Washington Trust Bank offers the lowest average APR at 4.8%, while KeyBank National Association has the highest at 11.9%.

Comparing rates and terms from different lenders is essential to securing the lowest home equity loan rates. Explore the interactive table below to see which lenders offer the best rates in your city.

Data filtered by:Results filtered by:
City:
City:Seattle
Gesa Credit Union6.8%
First Technology Federal Credit Union7.1%
Peoples Bank7.6%
Washington State Employees Credit Union7.7%
Sound Credit Union7.9%
BMO BANK NATIONAL ASSOCIATION8.5%
U.S. Bank National Association9.0%
Seattle Credit Union9.2%
Verity Credit Union9.5%
Banner Bank9.6%
Global Federal Credit Union9.6%
KeyBank National Association11.9%
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COMPARING HOME EQUITY LOAN RATES: BANKS VS. CREDIT UNIONS

Considering credit unions for home equity loan rates in Washington can be beneficial, as they often offer lower APRs compared to commercial banks. For instance, commercial banks in Washington have an average APR of 8.2%, whereas credit unions offer a more competitive rate of 7.9%. Keep in mind that credit unions may have stricter membership requirements.

How to Get the Best Home Equity Loan Rate in Washington

Getting the best home equity interest rates can lower your monthly payments and borrowing costs, freeing up funds for other goals. Imagine saving hundreds monthly by securing a low rate. To achieve the best home equity loan rates in Washington, consider these strategies:

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    Compare lenders

    Lenders may offer different APRs for the same loan amount and credit profile. For instance, Qualstar Credit Union advertises an average APR of 5.7%, while KeyBank National Association offers 11.9%. Comparing different home equity loan lenders in Washington can help you find better rates.

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    Increase your home's equity

    Having more equity in your home can result in more competitive rates from lenders. Washington homeowners can increase equity by installing energy-efficient windows or creating outdoor living spaces.

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    Improve your credit score

    Increasing your credit score can lead to more competitive home equity loan rates. Pay bills on time and reduce credit card debt to improve your credit score. The average credit score in Washington is 735, according to Experian.

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    Decrease debt-to-income ratio

    A lower debt-to-income (DTI) ratio — the percentage of your monthly income that goes toward paying debts — can lead to better rates as lenders see you as a less risky borrower.

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Debt-to-Income Ratio Calculator

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FAQ About Home Equity Loan Rates in Washington

MoneyGeek addresses common questions about home equity loan rates for Washington homeowners. We provide clear, reliable information to help you understand these rates and navigate your financial options confidently.

What is the interest rate on a home equity loan in Washington?

How do you calculate your home equity in Washington?

Do home equity loan rates vary between cities in Washington?

Does a home equity loan in Washington have tax benefits?

What are the possible drawbacks of securing a home equity loan in Washington?

How long does it take to get a home equity loan in Washington?

How do you get a home equity loan in Washington?

What can I use my funds for? Are there any home equity loan use restrictions in Washington?

Can you only take out a home equity loan in Washington on your primary residence?

What other home equity products can you consider if you want to tap into your home's equity in Washington?

What's the difference between a HELOC and a home equity loan?

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.


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