Updated: November 16, 2024
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Bank of America is the best home equity line of credit (HELOC) lender in Washington, with a MoneyGeek score of 94 out of 100. The runner-up is BMO Bank, with a MoneyGeek score of 94 out of 100.
The average HELOC limit in Washington is $144,942. How much you can borrow often depends on your home's equity, outstanding mortgage balance and credit score.
Comparing rates can help you find lenders suited to your needs. MoneyGeek compiled the best HELOC rates in Washington, updated weekly, to assist you.
The average HELOC balance in Washington for the third quarter of 2023 was $50,137, according to Experian. Calculating your HELOC payments is essential for managing this type of debt effectively and planning for any adjustments in your financial obligations.
Use our HELOC payment calculator to estimate your monthly payments based on the amount drawn, APR and loan terms. The full amortization schedule provided shows how much of your payments go toward interest and principal over time.
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.
Draw Period Payment
Repayment Period Payment
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Home equity lines of credit (HELOCs) are popular in Washington because they offer flexibility and control over borrowing amounts and repayment schedules. This financial tool allows homeowners to manage their finances more effectively by accessing funds as needed and repaying on their terms.
Below is a list of ways you can use a HELOC to meet various financial needs.
Home improvements or renovations
A HELOC is ideal for home improvements, offering flexibility as costs evolve. It allows homeowners to finance renovations without final cost constraints, making it a smart choice for enhancing property value.
Consolidating high-interest debt
Based on Experian data, the average 2023 consumer debt in Washington was $150,462. Using a HELOC for debt consolidation can simplify payments and reduce interest rates, providing financial relief.
Funding education expenses
A HELOC offers better terms for education expenses like tuition and books than other debts. It provides a flexible funding option for those seeking to invest in their education without high-interest burdens.
Investment properties
Using a HELOC for investment properties can enhance returns. It's vital to shop around for the best HELOC lenders for investment property to secure favorable rates and terms, maximizing investment potential.
Understanding the steps to apply for a HELOC in Washington is key to navigating the process smoothly. We've broken down this journey into six steps below.
Evaluating your credit score, debt-to-income ratio and home equity is essential before applying for a HELOC. The average credit score in Washington was 735, based on Experian data for the third quarter of 2023. A higher score can improve your chances of approval, making it a key factor to consider.
Exploring HELOC rates in Washington can help you secure the best deal. It's also wise to consider lender features such as repayment terms, fees and the option for a fixed-rate HELOC. These factors can significantly impact the overall cost and flexibility of your loan.
Gathering the necessary documents ahead of time can streamline your HELOC application. Commonly required items include proof of income, recent tax returns and details about your mortgage and home value. Being organized can help you avoid delays and ensure a smoother process.
Most lenders offer online applications, but you can apply in person if a branch is available. To prevent delays, ensure all information is accurate and complete. Double-check for any errors or omissions before submitting your application.
Some lenders may require a home appraisal to assess your property's current market value. This process involves a professional evaluation of your home's worth, which can influence the amount you can borrow through a HELOC.
The approval process can take two to six weeks. Once approved, you'll proceed to closing, which involves signing documents and possibly paying closing costs. Some lenders may cover part of these costs, so it's worth inquiring about this option.
According to Experian, the average HELOC limit in Washington for the third quarter of 2023 was $144,942. The amount you can borrow through a HELOC is typically tied to the equity you have in your home. Higher equity often results in a higher potential credit limit.
Check out the table below to see the range of credit lines offered by Washington lenders in our database that disclosed their line amount range.
| Bank of America | $15,000 to $1,000,000 |
| HSBC Bank USA | Up to $500,000 |
| KeyBank | $10,000 to $500,000 |
| U.S. Bank | $25,000 to $750,000 |
Most lenders will allow you to take out up to 90% of your home's equity. For example, if your home is appraised at $400,000 and you owe $200,000 on your mortgage, you could potentially take out up to $160,000 on a HELOC if you meet the requirements of that lender.
Bank of America is the best HELOC lender in Washington, with a MoneyGeek score of 94 out of 100. It excels in customer service and education, offers a competitive application process and approval and provides favorable interest rates and fees.
A bad credit score is generally below 580 for FICO scores and between 300 and 600 for VantageScore. When looking for the best HELOC lenders for bad credit, consider factors such as flexible lending criteria, willingness to work with lower credit scores and potential for co-signers or collateral.
When choosing a HELOC lender, consider interest rates, fees, borrowing limits, repayment terms and lender reputation. These factors will help you find a lender that meets your financial needs and goals.
Common fees associated with HELOCs include origination fees, annual fees, application fees and early closure fees. Comparing these fees can help you select a lender with the most cost-effective terms.
The typical draw period for HELOCs usually lasts 10 years, but some lenders may offer more flexible options. It's important to check with individual lenders to understand their specific terms.
Look for lenders that offer fixed-rate HELOC options or allow interest-only payments during the draw period. These features can provide more flexibility in managing your loan.
MoneyGeek's scoring system offers a comprehensive overview of how each lender performed in areas that matter most to borrowers. Scores were allocated based on the inclusion or exclusion of certain desirable features in various critical categories.
Our analysis was completed in October 2024 and considered different banks and credit unions in Washington from S&P Global's SNL Depository Rates dataset.
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.
