Best HELOC Rates in Washington (December 2024)

As of December 13, 2024, the best HELOC rate in Washington is 4.0% from First Financial Northwest Bank in Bellevue. This rate is notably lower than the state average of 8.5% and the national average of 8.3%.

Updated: December 21, 2024

Advertising & Editorial Disclosure

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 8.4%, compared with 8.7% for a 90% LTV.

HELOC rates vary by city in Washington. Fort Lewis has an average APR of 6.8%, whereas Snoqualmie's is 11.0%.

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 11.0%.

Current HELOC Rates in Washington

HELOC

Best HELOC Rates in Montana

HELOC

Best HELOC Rates in Nevada

HELOC Rates in Washington by LTV Ratio

Data filtered by:Results filtered by:

Line Limit

Select

Line Limit:$100,000


8.4%	8.9%

HELOC Rates in Washington by City

Data filtered by:Results filtered by:

City

Select

City:Seattle


$100,000	8.7%
$50,000	8.8%

HELOC Rates in Washington by Lender


First Financial Northwest Bank	4.0%
America's Credit Union, A Federal Credit Union	6.8%
Lewis Clark Credit Union	7.5%
Whatcom Educational Credit Union	7.6%
Idaho Central Credit Union	7.6%

Data filtered by:Results filtered by:

City

Select

City:Seattle


Washington State Employees Credit Union	Credit Union	7.7%
First Technology Federal Credit Union	Credit Union	7.8%
Gesa Credit Union	Credit Union	7.8%
Western Alliance Bank	Commercial Bank	7.8%
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%
Global Federal Credit Union	Credit Union	8.8%
Seattle Credit Union	Credit Union	9.0%
Verity Credit Union	Credit Union	9.1%
Bank of America	Commercial Bank	9.1%
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	11.1%

COMPARING HELOC RATES IN WASHINGTON: BANKS VS. CREDIT UNIONS

HELOC rates in Washington vary between banks and credit unions, with commercial banks generally offering higher rates. The best HELOC rate for commercial banks in Washington is currently 8.8%, while credit unions offer a lower average APR of 8.4%. Credit unions, as not-for-profit institutions, often provide more competitive rates.

When choosing between these options, consider more than just the rates. Banks might offer greater convenience, while credit unions often provide better customer service and lower fees. Check membership requirements for credit unions and be aware of any hidden fees or rate adjustment clauses with both types of 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

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

Draw Period Payment

$0

Repayment Period Payment

$0

Graph view
Table view
Amortization

Credit Payoff Schedule for Home Equity Line

YEAR

Ending balance

Principal paid

Interest paid

How to Get the Best HELOC Rates in Washington

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 8.5%, slightly higher than home equity loan rates at 8.0%. This is attributed to HELOCs having variable interest rates, which can rise over time.

- HELOCs are flexible, revolving credit lines with variable rates that adjust with market conditions. In rising interest rate environments, these rates can increase, affecting homeowners' finances over the long term.

- Home equity loans offer a lump sum at fixed rates, providing stability throughout the loan term. They are preferable for those seeking financial certainty and in situations where a predictable repayment schedule is needed.

When deciding between these options, consider whether you value the flexibility of a HELOC or the predictability of a home equity loan. Evaluate how each product aligns with your financial goals and your ability to manage 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 8.5%, which is slightly higher than the national average of 8.3%.

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 8.5%, while home equity loan rates are lower at 7.9%, which may benefit those with bad credit.

How do HELOC Rates in Washington vary between banks and credit unions?

Commercial banks in Washington offer HELOC rates averaging 8.8%, while credit unions offer lower rates at 8.4%.

What's the best HELOC rate in Seattle? How does it compare to the current HELOC rate in Washington?

Seattle's rates average 8.7%, which is slightly higher than Washington's state average of 8.5%.

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 December 13, 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.

Read Full Bio »