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Home equity · May 2026

Keep your 3% mortgage.
Access your equity at a fixed rate.

Seattle and Bellevue homeowners who locked in low rates between 2020 and 2022 are sitting on record equity — and have no reason to give up their primary mortgage. A fixed home equity loan lets you access that cash without refinancing.

Avg. Eastside tappable equity

~$310K

Homeowners who bought pre-2022

May 2026 fixed HEL rate

~8.1%

vs. 22–27% credit card APR

Max CLTV (most lenders)

80%

Some lenders go to 85–90%

Product comparison

Home equity loan vs. HELOC vs. cash-out refinance

The right product depends on your rate situation, how much you need, and whether you want to disturb your primary mortgage. For most locked-in owners, the answer is clear.

ProductMay 2026 rateRate typeDisbursementTouches primary?Best for
Home Equity LoanThis page~8.1% fixedFixedLump sumNoDebt consolidation, one-time renovation, known cost
HELOC~8.5–9.5% variableVariableDraw as neededNoPhased renovation, bridge financing, flexible draw timeline
Cash-Out Refinance~6.5% fixedFixedLump sumYes — replaces itWhen replacing a high primary rate; large loan amounts

Rates are May 2026 estimates for well-qualified King County borrowers. APR varies by lender, CLTV, and credit profile. Not a lender commitment.

Savings calculator

Credit card debt vs. fixed home equity loan

See how much interest you could stop paying — without touching your primary mortgage.

$40,000
$5K$150K
24%
14%32%
Home equity loan rate used: 8.1% fixed (May 2026 estimate). Your actual rate depends on credit, CLTV, and lender. Verify with a lender before making decisions.

CC monthly interest

$800

at 24% APR

HEL monthly interest

$270

at 8.1% fixed

Your estimated savings

Monthly savings$530
Annual savings$6,360
5-year interest savings$31,800
See if I qualify →

Interest-only comparison. Actual loan payments include principal.

The stay-put strategy

Renovate instead of selling. Gain equity instead of paying commissions.

With Seattle and Bellevue homes up 40–60% from 2020 lows, many homeowners are cash-rich but payment-locked. Selling means giving up a 3% mortgage and paying 6–7% in transaction costs. A home equity loan funds the renovation that keeps you — and adds value at the same time.

ADUs are particularly compelling in the current market. King County has streamlined permitting, rental demand on the Eastside is strong, and a well-built DADU typically returns more than its cost in appraised value within 2–3 years.

Calculate my tappable equity →

ADU / DADU addition

$150K–$300K

A detached accessory dwelling unit adds significant value in Seattle and Bellevue — and generates rental income that can offset your equity loan payment. Average ADU build costs run $200–$400/sqft on the Eastside.

Kitchen or primary bath remodel

$40K–$120K

Kitchen and bath renovations in King County return roughly 60–80% at resale — and dramatically affect appraisals. A fixed equity loan at 8% is more predictable than HELOC draws for a defined-scope project.

Debt consolidation

Varies by balance

Replacing 24% APR revolving credit with an 8% fixed loan cuts your interest cost by roughly two-thirds. Use the calculator above to model your specific savings.

Down payment for a second home

10–20% of next purchase

Eastside homeowners with significant equity can use a home equity loan to fund the down payment on an investment property or second home — without selling or refinancing their primary mortgage.

Tech employee equity access

Eastside homeowners with Amazon, Microsoft, or Google RSU income can use that vesting income to qualify for larger home equity loans — the same documentation standards apply as with a purchase mortgage. We work with lenders who underwrite tech comp packages fluently, so your RSU history doesn't slow the process.

Check RSU eligibility →

Fee transparency

What you'll actually pay at closing in Washington State

Home equity loan closing costs are lower than a purchase mortgage but not zero. Here's what to budget for a typical King County home equity loan in 2026.

Fee itemTypical rangeNotes
Appraisal$400–$700Required by most lenders to establish current value
Title search & insurance$500–$1,200Confirms clean title; protects lender and you
Origination fee0.5–1% of loanSome lenders waive for well-qualified borrowers
Recording fee$100–$200King County Recorder's Office fee to register the lien
Escrow / attorney fees$200–$500Closing coordination in Washington State
Estimated total2–5% of loan amountNo-closing-cost options available — check the rate tradeoff

Fee ranges based on Washington State lender disclosures and typical Eastside closing costs. Your lender is required to provide a Loan Estimate within 3 business days of application — that document will itemize your actual fees. Verify all costs with your lender before proceeding.

Adriano Tori, Founder & Designated Broker

Content reviewed by

Adriano Tori

Founder & Designated Broker · RexMont Real Estate

Rate estimates, fee ranges, and CLTV figures on this page reflect May 2026 King County market conditions. For your specific numbers, our team provides a no-cost equity analysis with comparable sales and lender comparisons.

Free equity analysis

Next steps

Calculate my equity →

See your net sale proceeds, HELOC borrowing power, and move-up budget instantly.

Check my eligibility →

Screen your income type, credit, and goals against May 2026 lender guidelines.

Get pre-approved →

Build a lender-ready package and get a pre-approval letter before you need it.

FAQ

Home equity loan questions

Common questions from Seattle and Bellevue homeowners considering their equity options in May 2026.

Calculate my equity →Free equity analysis

What is the difference between a home equity loan and a HELOC?

A home equity loan gives you a lump sum at a fixed interest rate — your payment is the same every month for the life of the loan. A HELOC is a revolving line of credit with a variable rate tied to prime; you draw what you need and pay interest only on what you use. In May 2026, with prime-linked HELOC rates in the mid-to-high 8s, fixed home equity loans are attractive for borrowers who want payment certainty — particularly for debt consolidation or one-time projects.

Does a home equity loan affect my existing mortgage rate?

No. A home equity loan sits as a second lien on your property and has no effect on your first mortgage rate or terms. This is the key advantage for Seattle and Bellevue homeowners who locked in rates at 2.5–3.5% between 2020 and 2022 — you can access equity without losing your low-rate primary loan. A cash-out refinance, by contrast, replaces your first mortgage entirely.

How much equity can I borrow against in Washington State?

Most conventional lenders allow a combined loan-to-value (CLTV) of up to 80% — meaning your first mortgage plus the equity loan cannot exceed 80% of your home's appraised value. Some lenders go to 85–90% for well-qualified borrowers with slightly higher rates. On a $900K Eastside home with a $480K balance, that's roughly $240K available at 80% CLTV.

What are the typical closing costs for a home equity loan in Washington?

Closing costs for a Washington State home equity loan typically range from 2–5% of the loan amount and include: appraisal ($400–$700), title search and insurance ($500–$1,200), origination fee (0.5–1% of loan), recording fee ($100–$200), and attorney or escrow fees ($200–$500). Some lenders offer no-closing-cost options that roll fees into the rate — which can make sense for smaller loan amounts over shorter terms.

Can I use a home equity loan to consolidate credit card debt?

Yes, and it's one of the most common uses. Credit card APRs in May 2026 average 22–27%. A fixed home equity loan at approximately 8% replaces that high-cost revolving debt with a predictable, lower-rate installment payment. The interest may also be tax-deductible if used for qualified purposes — consult a tax advisor. The risk: your home secures the loan, so defaulting has more serious consequences than missing a credit card payment.

Can Seattle tech employees use RSU income to qualify for a home equity loan?

Yes, if documented correctly. Lenders who work with Eastside tech employees know how to underwrite RSU vesting income — typically requiring 2 years of vesting history, current grant agreements, and paystubs showing recent payouts. This documentation is the same whether you're applying for a purchase mortgage or a home equity loan. The lender needs to establish income continuity, not just a recent payout.

Data sources & methodology: Home equity loan rate estimates based on May 2026 market spreads for well-qualified King County borrowers at 80% CLTV. HELOC rates based on prime rate plus typical lender margins. Fee ranges sourced from Washington State lender disclosures and King County Recorder schedule. All figures are estimates for educational purposes and do not constitute a lender commitment. Consult a licensed mortgage professional and tax advisor before making decisions based on home equity.