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A HELOC offers financial support when you need to pay for major expenses, including a college education, debt consolidation, home improvement and more. HELOCs are ideal for homeowners who manage credit wisely and have substantial home equity.

Before you apply for a HELOC, it’s best to shop around and see how lenders compare. This can help you determine which lender best fits your financial needs.

MoneyGeek found that Bank of America is the best overall HELOC lender in Washington. Our research also shows that the home equity line of credit rates in Washington range from 0.99% to 18%.

WHAT WE’RE GEEKING OUT ON

Home Equity Line of Credit (HELOC) Rates for 2023

The table below provides an overview of home equity line of credit rates and relevant information about HELOC lenders as of May 2022. This allows you to find the best option for your needs.

The information in this table constantly changes as lenders update their offerings. To keep up to date, MoneyGeek regularly updates this table with the most recent information.

Lender
APR
Loan Amount
Min. Credit Score Requirement
Repayment Terms
Annual Fees
Pre-Approval Time

PenFed Credit Union

3.75% to 18%

$25,000 to $1,000,000

660

10-year draw period
and 20-year repayment period

None

N/A

PNC Bank

Not specified

Not specified

Not specified

Not specified

Not specified

Not specified

Bank of America

1.99% special
introductory variable
APR for 6 months,
then as low as
4.35% variable

$25,000 to $1,000,000

Not specified

10-year draw period,
20-year repayment period

Not specified

Not specified

U.S. Bank

3.65% to 8.80%

$15,000 to $750,000

730

10-year draw period,
unspecified repayment period

$90

Not specified

Flagstar

Starting at 3.99%

$10,000 to $500,000

Not specified

10-year draw period
and 20-year repayment period

$75

Not specified

SunTrust/Truist

Starting at 4.64%

$10,000 to $500,000

Not specified

10-year draw period
and 20-year repayment period

None

24 hours

Figure

Starting at 3.50%

$15,000 to $400,000

620

5 to 30 years

3% to 4.99%

24 hours

Citizens Bank

Starting at Prime - 0.50%

Starting at $17,500

Not specified

10-year draw period,
15-year repayment period

$50

Not specified

TD Bank

Starting at 3.34%

Starting at $25,000

740

Not specified

$50

Not specified

Connexus Credit Union

3.49% for 6 months
(4.08% thereafter)

Starting at $5,000

Not specified

15-year draw period
with 15-year repayment period

None

24 hours

Regions Bank

3.75% to 10.63% variable

$10,000 to $500,000

Not specified

10-year draw period,
and then 20 years for repayment

None

Not specified

MoneyGeek’s Picks for Best HELOC Lenders in Washington

MoneyGeek outlined the best home equity line of credit lenders so that Washington homeowners can find one that perfectly suits their needs. We did this because we care about consumers and want to help them be successful financially.

Not many lenders, aside from national banks, offer home equity line of credit loans. In the event your application is denied by a national lender, you can opt for a local credit union that offers HELOC loans.

Best Overall HELOC Lender in Washington: Bank of America


  • Bank of America

    Bank of America offers one of the lowest six-month introductory APR of 1.99%.

    • 7.49% (introductory rate) then 9.90%APR Range
    • UndisclosedMinimum Credit Score
    • Generally $25,000 to $1,000,000Loan Amount Range
    • 10-year draw period; 20-year repayment periodRepayment Terms
    • NoneAnnual Fees
    • UndisclosedPre-Approval Time
    Bank of America

Best HELOC Lender for Good Credit in Washington: U.S. Bank


  • U.S. Bank

    Homeowners with good or excellent credit can apply with U.S. Bank online, by phone or by visiting a branch.

    • 8.95% to 12.70%APR Range
    • 660Minimum Credit Score
    • $15,000 to $750,000 ($1 million in California)Loan Amount Range
    • 10-year draw period; up to 30 years repayment periodsRepayment Terms
    • Up to $75Annual Fees
    • UndisclosedPre-Approval Time
    U.S. Bank

Best HELOC Lender for Bad Credit in Washington: Figure


  • Figure

    Figure offers a great extended-payment option of up to 30 years.

    • 6.10% to 14.74%APR Range
    • 640 (680 for investment properties or second homes)Minimum Credit Score
    • $20,000 to $400,000Loan Amount Range
    • 5 to 30 yearsRepayment Terms
    • NoneAnnual Fees
    • 24 hoursPre-Approval Time
    Figure

Best HELOC Lender for Competitive Rates in Washington: PenFed


  • PenFed Credit Union

    For qualified borrowers, PenFed offers the lowest six-month introductory APR of 0.99%.

    • Starting at 8.625%APR Range
    • 680Minimum Credit Score
    • $25,000 to $500,000Loan Amount Range
    • 10-year draw period; 20-year repayment periodRepayment Terms
    • $99Annual Fees
    • UndisclosedPre-Approval Time
    PenFed Credit Union

HELOC vs. Home Equity Loans

Learning more about the differences between a home equity loan (HELOAN) and a home equity line of credit (HELOC) can help you decide which one fits your needs best. While both loans use your home as collateral, there are key differences between the two.

With a home equity loan, borrowers receive a lump sum and pay fixed interest rates and fixed repayment terms. As soon as the money is disbursed to the borrower, the repayment term will commence.

Meanwhile, a home equity line of credit is similar to a credit card. Borrowers can use a specific amount based on the draw period. These are both set by the lender and have variable interest rates that shift with economic conditions.

The table below outlines the differences between the two.

HELOC
Home Equity Loan

Interest Rate

Adjustable interest rate,
but fixed-rate options are available

Fixed interest rate

Monthly Payment

Changes depending on
the amount of money borrowed

Fixed monthly payments

Repayment Terms

During the draw period, borrowers pay
interest on the money they borrowed;
after the draw period, they repay any
principal owed in addition to interest

Repayment starts as soon as
the money is given to the borrower

Fund Disbursements

Line of credit

Lump sum delivery

How to Apply for a HELOC

Generally, applying for a HELOC is easy since you can process your application online. Borrowers will need to provide their contact details and personal information. After that, you’ll need to wait for the lender’s approval.

1

Determine how much you need

A HELOC is ideal for individuals who are smart budgeters and know the exact amount they need to borrow. HELOCs are great for financing large expenses, expected or otherwise. However, if you only need a few thousand dollars, reconsider opening a HELOC.

2

Assess your financial standing

It’s always a good idea to evaluate your current financial situation before applying for a HELOC. Do you have any outstanding debts? How much can you afford to borrow right now? What’s your credit score? Remember, many lenders will look at your credit score, so if you can improve it before applying, your application could be more favorable.

3

Shop around and compare lenders

Researching HELOC lenders is a wise thing to do. Comparing different rates, terms and fees will help you determine which lender best suits your financial situation. Doing so may also get you low rates and can help you avoid additional costs.

4

Apply

Usually, you can apply for a HELOC online. You might be asked to provide verified documents, including mortgage statements, bank statements and proof of income.

5

Use funds wisely

During the draw period, note the accompanying fees and your repayment terms. This will help you account for how much you need to pay each month, helping you with your budgeting. It also pays to read the fine print to avoid any other fees.

Frequently Asked Questions About HELOCs

If you’re learning about a home equity line of credit (HELOC) for the first time, it can be confusing. MoneyGeek answered commonly asked questions to help you in your HELOC journey.

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