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
Best HELOC Rates in Washington
Updated: November 19, 2024
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Key Takeaways
Higher loan-to-value (LTV) ratios lead to higher rates. The average APR for a HELOC in Washington with an 80% LTV is 8.5%, compared with 8.9% for a 90% LTV.
HELOC rates vary by city in Washington. Dupont has an average APR of 7.0%, whereas Snoqualmie's is 11.3%.
Different lenders offer varying rates. First Financial Northwest Bank's average APR is 4.0%, whereas KeyBank National Association's is 11.3%.
Current HELOC Rates in Washington
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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
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
| $100,000 | 8.7% |
| $50,000 | 8.8% |
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 Bank | 4.0% |
| America's Credit Union, A Federal Credit Union | 7.0% |
| Lewis Clark Credit Union | 7.5% |
| Whatcom Educational Credit Union | 7.6% |
| Idaho Central Credit Union | 7.6% |
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
| Washington State Employees Credit Union | Credit Union | 7.7% |
| First Technology Federal Credit Union | Credit Union | 7.8% |
| Western Alliance Bank | Commercial Bank | 8.0% |
| Gesa Credit Union | Credit Union | 8.0% |
| Peoples Bank | Commercial Bank | 8.0% |
| Boeing Employees Credit Union | Credit Union | 8.2% |
| BMO BANK NATIONAL ASSOCIATION | Commercial Bank | 8.4% |
| HomeStreet Bank | Commercial Bank | 8.5% |
| Heritage Bank | Commercial Bank | 8.5% |
| Harborstone Credit Union | Credit Union | 8.5% |
| First Horizon Bank | Commercial Bank | 8.5% |
| Umpqua Bank | Commercial Bank | 8.8% |
| Seattle Metropolitan Credit Union | Credit Union | 9.0% |
| Global Federal Credit Union | Credit Union | 9.0% |
| Verity Credit Union | Credit Union | 9.1% |
| Bank of America | Commercial Bank | 9.3% |
| U.S. Bank National Association | Commercial Bank | 9.5% |
| HSBC Bank USA | Commercial Bank | 9.6% |
| Banner Bank | Commercial Bank | 9.7% |
| Sound Credit Union | Credit Union | 10.8% |
| KeyBank National Association | Commercial Bank | 11.3% |
COMPARING HELOC RATES IN WASHINGTON: BANKS VS. CREDIT UNIONS
HELOC rates in Washington vary between banks and credit unions. Commercial banks generally offer higher rates, with the best rate at 9.0%, compared to credit unions, which average 8.6%. Credit unions are not-for-profit institutions, often resulting in slightly lower rates.
When choosing between the two, consider more than just rates. Banks may offer more convenience, but credit unions often have better customer service and lower fees. Also check membership requirements for credit unions and any hidden fees or rate adjustment clauses with both lenders.
Ask the experts:
Are there any strategies homeowners can use to lock in a favorable HELOC rate in a rising interest rate environment, and how does a rate lock typically work with HELOCs?
Credit & Mortgage Expert
HELOCS often have variable interest rates, meaning they go up or down with the Federal Funds rate. So if you are worried about rates rising, you should look into a home equity loan or refinancing your home. That way you have a fixed rate that will not change over time.
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.
Credit Line Information
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Repayment Period Payment
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- Table view
- Amortization
Credit Payoff Schedule for Home Equity Line
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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:
Maintain a strong credit score
Washington's average credit score is 735. While good, aiming higher can secure better rates from lenders.
Compare offers from multiple lenders
Shopping around can reveal competitive rates and help negotiate better terms.
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.
Increase your home equity
More equity means less risk for lenders, leading to lower rates. Consider paying down your mortgage or home improvements.
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 8.6%, higher than the 7.9% for home equity loans. This difference arises from the variable nature of HELOC rates, which are more susceptible to changes in rising interest rate environments.
- HELOCs are flexible, revolving credit lines with variable interest rates. In rising interest rate environments, HELOC rates can increase, potentially straining homeowners' finances over time.
- Home equity loans provide a lump sum at a fixed interest rate, offering stability and predictability. They are a better choice for those who prefer consistent payments and financial certainty.
If deciding between these options, consider your financial goals and risk tolerance. If you value flexibility and can manage fluctuating payments, a HELOC may suit you. If you prefer predictable payments, a home equity loan might be more appropriate for borrowing against 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?
The average HELOC rate in Washington is 8.6%, which is slightly higher than the national average of 8.4%. For more details, check Washington's HELOC rates.
What fees are commonly associated with HELOCs in Washington?
Common fees include application fees, appraisal fees, annual fees, and early closure fees, but specifics vary by lender.
How do HELOC rates in Washington compare to home equity loan rates?
Washington's HELOC rates average 8.6%, while home equity loan rates are lower at 7.9%. This difference can be more pronounced for those with bad credit.
How do HELOC Rates in Washington vary between banks and credit unions?
Commercial banks in Washington offer HELOC rates averaging 9%, while credit unions offer lower rates at 8.6%.
What's the best HELOC rate in Seattle? How does it compare to the current HELOC rate in Washington?
The average HELOC rate in Washington is 8.6%, while Seattle's rates are slightly higher, averaging 8.8%.
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.
This data is accurate as of November 15, 2024.
64Lenders Analyzed
About Zachary Romeo, CBCA
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.