Home Equity Line of Credit (HELOC)
Your Home's Equity, Working for You
At Bank of Washington, we believe your home should do more than provide comfort - it should empower your goals. A Home Equity Line of Credit (HELOC) gives you flexible access to the equity you’ve built in your home, so you can fund what matters most, when it matters most.
Whether you're planning a renovation, consolidating debt, covering education costs, or simply want a financial cushion for the unexpected, a HELOC can be a smart, affordable solution.
Why Choose a HELOC?
Flexibility. Unlike a traditional loan, a HELOC works similarly to a credit card: borrow what you need, when you need it, up to your approved limit.
Lower Rates. HELOCs typically offer lower interest rates than personal loans or credit cards, making them a cost-effective way to borrow.
Only Pay for What You Use. You’re in control. Draw funds as needed and only pay interest on the amount you use.
Revolving Credit. As you repay, your available credit replenishes, giving you ongoing access to funds.
Common Reasons People Use a HELOC
- Home Improvements: Upgrade your kitchen, add a deck, or finish the basement.
- Debt Consolidation: Pay off high-interest credit cards or personal loans.
- Education Expenses: Support tuition, books, or other school-related costs.
- Emergency Funds: Be prepared for life’s unexpected turns.
- Major Purchases: From weddings to dream vacations, your equity can help make it happen.
Estimate Your Potential Credit Line
Curious how much you might be able to borrow, but not ready to talk yet? Use our HELOC Calculator to get a quick estimate based on your home’s value and current mortgage balance.
It’s fast, easy, and a great starting point. Every situation is unique, and our local lenders are here to help you understand the full picture. We’d love to talk with you, answer your questions, and help you decide what’s best for your goals.
Is a HELOC Right for You?
Every financial journey is unique. That’s why our local lending team is here to help you explore your options, answer your questions, and guide you toward the best solution for your goals.
We’ll walk you through:
- How much equity you have
- What your monthly payments could look like
- How a HELOC compares to other lending options
No pressure. Just honest guidance from people who live and work in your community.
Sherry Wahle
SVP, Director of Mortgage and Consumer Lending
NMLS 591834
Phillip Kleekamp
VP, Mortgage and Consumer Lender
NLMS 2124193
Frequently Asked Questions about HELOCs
Thinking about using your home’s equity?
You’re not alone. Here are answers to common questions about Home Equity Lines of Credit (HELOCs) to help you feel confident and informed.
What is a Home Equity Line of Credit (HELOC)?
A Home Equity Line of Credit (HELOC) lets you borrow against the equity in your home. It works similarly to a credit line: you can draw funds as needed, up to a set limit.
How does a HELOC work?
Think of it like a credit card, but with lower rates and backed by your home’s equity. You’re approved for a set amount, and you can borrow what you need, when you need it. Then, pay it back over time. You only pay interest on what you use, making it a flexible way to fund projects, expenses, or goals.
What can I use a HELOC for?
You can use it for home improvements, education costs, debt consolidation, emergency expenses, or other big purchases. It’s flexible and up to you.
Is a HELOC better than a personal loan or credit card?
HELOCs often offer lower interest rates than personal loans or credit cards because they’re secured by your home. They’re ideal for larger expenses or ongoing projects.
How do I qualify for a HELOC?
Eligibility depends on your home’s equity, credit score, income, and debt-to-income ratio. Our lenders can help you understand your options and guide you through the process.
Will getting a HELOC change my current mortgage rate?
No, it won’t! Your existing mortgage and its interest rate stay exactly the same when you open a Home Equity Line of Credit. A HELOC is a separate loan that uses your home’s equity as collateral, but it does not replace or alter your current mortgage.
Think of it as an additional tool in your financial toolbox, your mortgage keeps doing its job, and your HELOC gives you flexible access to funds for other needs.
Does a HELOC refinance my mortgage?
No. A HELOC is not a refinance. It’s an additional line of credit that works alongside your mortgage. You’ll continue making your regular mortgage payments just as you always have.
What’s the difference between a HELOC and a home equity loan?
A HELOC is a revolving line of credit, you borrow what you need, when you need it. A home equity loan gives you a lump sum upfront with fixed payments.
How do I know if a HELOC is right for me?
If you have equity in your home and a financial goal in mind, a HELOC might be a smart option. Our lenders can help you explore whether it’s a good fit.
How do I get started with a HELOC?
Start by connecting with one of our local lenders. We’ll review your financial goals, answer your questions, and help you decide if a HELOC is the right fit.