Home Equity Loan Rates in Washington (January 2025)

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 above national averages — 8.0% APR for a 10-year term (7.7% nationally) and 8.1% APR for a 15-year term (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.

The current average APR for a 15-year home equity loan in Washington is 8.1%, but several factors might affect what lenders offer. For instance, a higher credit score often results in a lower APR, while a larger loan amount could lead to a higher rate. Repayment terms are another consideration. Explore the table to compare current home equity loan rates in Washington for different loan terms.

Interest rates for a home equity loan change daily. Monitoring these changes can save you money on interest over the life of your loan and make financing renovations more affordable.

For example, a 15-year home equity loan at an 8.1% APR results in a monthly payment of $481 and a total interest of $36,529. In contrast, a 10-year loan at an 8% APR has a monthly payment of $607 and a total interest of $22,797.

The rate you qualify for depends on your loan-to-value ratio, which is 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 on your mortgage, your LTV ratio is 80%.

A higher LTV ratio means greater potential risk to lenders, resulting in higher rates. Currently, the average APR of a 15-year equity loan in Washington with an LTV ratio of 80% is 8.1%. It's 8.3% for an LTV ratio of 90%. Use the table to see what rates you might qualify for based on your LTV ratio.

Average APRs also vary between cities in Washington. In larger or more densely populated cities, more lenders compete, which can lead to lower interest rates. Differences in property taxes or local fees can also influence rates, as these affect overall borrowing costs.

In Washington, Long Beach has an average APR of 6.4%, while Snoqualmie has an average APR of 11.9%. Below is a table showing the cities in Washington and their average home equity loan rates for different terms.

Home equity loan rates in Washington vary significantly between lenders due to differing policies and market strategies. For instance, Washington Trust Bank offers the lowest average APR at 4.8%, whereas KeyBank National Association has the highest at 11.9%.

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

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

MoneyGeek addresses common questions about home equity loan rates for Washington homeowners, providing precise and reliable information to help you navigate your financial options confidently.