Washington HELOC Rates and Lenders

You might be searching for the best HELOC rates in Washington because you want to tap into your home’s equity for a major expense—a kitchen remodel, credit card consolidation, or your child’s college tuition. 

In doing so, you want to be sure you’re getting the best deal to accomplish your goals without putting too much strain on your budget. To help the cause, we’ve found the best home equity line of credit (HELOC) rates in Washington:

Company	Rates (APR)	Our rating
Figure	8.80% – 17.45%	4.9/5
Bethpage FCU	Starting at 8.50%	4.7/5
LendingTree	Starting at 6.99%	4.5/5

Reviews of the best Washington HELOC lenders

Here are our reviews of the best HELOC lenders in Washington state.

Figure – Best overall

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LendEDU rating: 4.9 out of 5

• Competitive fixed rates
• Quick and hassle-free process
• Must borrow 100% of your credit line (minus fees) at closing

Figure stands out as a top choice for a HELOC in Washington. We like this lender’s fixed interest rates, which provide borrowers with stability and predictability in their repayment plans. 

Figure streamlines the lending process by eliminating the need for an in-person appraisal. This can expedite funding availability to as few as five days. It also allows you to redraw up to 100% of funds, offering repeated access to your borrowed capital within the draw period. 

However, take note of the origination fee, which can be up to 4.99%. Figure also requires you to draw 100% of funds at origination. If you are not going to use the full credit line amount right away, it could mean you’re paying interest on money you don’t need. 

Still, if you plan to use your full line of credit immediately, we think Figure’s features, plus the range of borrowing limits—from $20,000 to $400,000—make it a robust choice.

Bethpage FCU – Best credit union

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LendEDU rating: 4.7 out of 5

• 12-month intro rate of 6.99% for VantageScores of 720 and up; then a variable rate
• Borrow $10,000 to $1 million
• No application, origination, or appraisal fees

Bethpage Federal Credit Union (FCU) offers competitive advantages in fee structure and flexible rate options. Borrowers can access amounts from $10,000 up to $1 million, coupled with no application, origination, or appraisal fees, which can reduce the overall cost of securing a HELOC. 

The option to convert part of your HELOC to a fixed-rate loan is attractive for those seeking certainty in their repayment amounts.

Bethpage’s low fixed introductory rate of 6.99% for applicants with VantageScores of 720 and above for the first 12 months (followed by a variable rate) is enticing. This feature is contingent on drawing at least $25,000 at closing, making it an excellent option for those leveraging a larger initial sum. 

Its comprehensive approach makes it a leading choice among credit unions for Washingtonians looking for cost-effective and flexible home equity options. 

LendingTree – Best marketplace

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LendEDU rating: 4.5 out of 5

• Single application for multiple offers
• Comprehensive lender reviews
• Tools and resources for decision-making

LendingTree distinguishes itself through its user-friendly platform. It simplifies finding the best HELOC rates in Washington by providing multiple offers through a single application. This method saves time and empowers borrowers by broadly comparing available options. 

LendingTree is popular among users who value having all the necessary information and tools for making informed decisions. In addition to its core service, LendingTree offers comprehensive lender reviews, tools, and resources to help prospective borrowers better understand their choices. 

This educational approach and the convenience of one-stop shopping for financial products make LendingTree a valuable resource for Washington homeowners exploring HELOC options.

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Best HELOC lenders and rates

About HELOC rates in Washington

HELOC rates in Washington are similar to those in other states. As of May 2024, many lenders have rates from 6.99% to 8.25%, which is on par with national offers. 

But here’s where living in Washington could make a difference: home values. Washington boasts some of the most expensive properties in the nation. 

The state’s average home value is $591,148 compared to the national average of $354,179. In major cities like Seattle, average home prices soar to an astronomical $879,412. 

What does this mean for HELOCs? If you have a lot of equity, these higher home values could help you qualify for a larger HELOC amount and potentially better rates. 

Compare rates at different banks and origination fees when searching for a HELOC. Most HELOCs with a variable rate will be tied to the prime rate, which is currently 8.5% (as of May 2024).

Michael Menninger

CFP®

How your HELOC rate affects your overall loan cost

Your HELOC rate is super important because it directly impacts how much you’ll pay in interest over the life of your loan. Examining how HELOCs work helps to understand those costs.

For instance, most HELOCs have two phases: a draw period and a repayment period. 

• During the draw period (usually up to 10 years), you can borrow money as needed and typically only pay interest on what you’ve borrowed. You then enter the repayment period.
• During the repayment period (usually 10 to 20 years), you repay both principal and interest in monthly payments.

Say you have a $50,000 HELOC with a 9% APR, a 10-year interest-only draw period, and a 20-year repayment term. If you borrowed the full amount and made only the minimum payments, you’d pay around $148,000 in interest alone! That’s almost triple the original loan amount.

And that’s assuming your interest rate never changes. If you have a variable rate (which most HELOCs do), your rate will most certainly fluctuate based on market conditions. This means your APR could shoot up to 11% one month or down to 7% one month. You never know. 

Some HELOCs let you lock in part or all of your balance, which can help stabilize your monthly payments (and help you predict your total borrowing costs). 

However, variable payments generally make it harder to predict how much you’ll pay overall. And if your HELOC has annual fees, it can be even more expensive.

Ask the expert

Michael Menninger

CFP®

You should pay more than just the interest during the draw period of your HELOC. Otherwise, you will pay more interest over the term of the loan. Plus, paying it down creates more room for future borrowing. I would suggest considering a minimum payment as if it were a 10-year loan, which may be conservative, but that is the point. 

How to get the lowest HELOC rates in Washington

No one wants to pay more than they have to when borrowing money with a HELOC. So pay attention to these three things if you want to get the lowest HELOC rates in Washington: 

1. Know your credit score

Lenders often give the best rates to borrowers with credit scores of 700 or higher. To snag the lowest rates, maintain a great credit score by paying your bills on time and keeping your credit card balances low.

2. Understand your loan-to-value (LTV) ratio

In most states (including Washington), you can have an LTV of up to 90% on a HELOC. If you own at least 10% equity in your home, you’ll meet this ratio. 

However, the more equity you have in your home, the better because loan rates are often tied to LTV—you can typically get a lower rate at 80% LTV than 90 or 95%.

3. Consider your debt-to-income (DTI) ratio

This compares your monthly debt payments to your income. Lenders usually prefer HELOC borrowers to have a DTI below 50%. If your ratio is above this, paying down some debt or increasing your income can align it with what it should be.

How to apply for a HELOC in Washington

If you only do one thing, do this: Take the time to shop around and compare HELOC offers from multiple lenders. You’ll find the better deal by casting a wide net and seeing what’s out there. Plus, some lenders offer special promotions or discounts that could help you save even more.

You’ll usually follow these steps to get a HELOC in Washington: 

1. Check your credit report and scan for any errors that could damage your approval chances.
2. Gather all the documents you’ll need for a HELOC, like pay stubs, W-2s, and profit-and-loss statements if you’re self-employed.
3. Make a list of all the HELOC lenders you want to apply with, then submit your application online, in person, or by phone. (Online is quickest and easiest!)
4. Wait for the lender to process your application and order an appraisal to determine your home’s value.
5. Review your loan agreement, and pay special attention to the interest rates, fees, and repayment schedule.
6. If you like what you see, sign the loan documents. You’ll usually receive a card or checkbook to pay for things as needed.

FAQ

What is the lowest HELOC rate in Washington?

LendingTree currently advertises some of the lowest HELOC rates in Washington—around 6.99% for borrowers with excellent credit. 

What HELOC has the highest rates in Washington?

Many HELOC lenders charge a maximum APR, usually for borrowers with the worst credit. Based on our research, lenders like Figure have some of the highest maximum APRs at 17.20%. 

Still, this rate is much lower than personal loan maximums, which can be as high as 29.49% or more.  

Do any lenders not offer HELOCs in Washington, and why not?

Most national lenders offer HELOCs in Washington state, so if you’re looking to get a loan with a well-known industry leader, you should be covered. But that doesn’t mean you won’t find smaller regional lenders that don’t offer HELOCs in Washington. 

For instance, TD Bank is a big name on the East Coast, but it doesn’t lend in Washington state because it falls outside of its service area.

Recap of the best HELOC rates in Washington

Company	Rates (APR)	Our rating
Figure	8.80% – 17.45%	4.9/5
Bethpage FCU	Starting at 8.50%	4.7/5
LendingTree	Starting at 6.99%	4.5/5