What is a HELOC and how does it work in Washington?

A HELOC (Home Equity Line of Credit) is a revolving credit line secured by your home's equity — similar to a credit card, but backed by real estate. In Washington, you can typically access up to 80–85% of your home's value combined across your first mortgage and the HELOC. You draw funds as needed during the draw period (usually 10 years), pay interest only on what you've borrowed, and repay principal during the repayment period. Rates are variable, tied to the prime rate. HELOCs work well for ongoing projects, business capital, or emergency reserves.