Updated: November 23, 2024
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The best home equity line of credit (HELOC) lender in California is U.S. Bank with a MoneyGeek score of 96 out of 100, followed by BMO Bank with a score of 94 out of 100.
The average HELOC limit in California is $190,080. How much you can borrow depends on your home 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 California, updated weekly to assist you in your HELOC journey.
The average HELOC balance in California as of the third quarter of 2023 was $61,084, according to Experian. Calculating your HELOC payments is key to managing this debt and planning for any changes in your financial obligations.
Use our HELOC payment calculator to estimate your monthly payments based on the amount drawn, APR and loan terms. In addition, 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
YEAR
Home equity lines of credit (HELOCs) are a popular financial tool in California, largely because they offer homeowners flexibility in accessing funds tied to their property's value. Here are some common ways you can use a HELOC to meet your financial needs.
Home improvements or renovations
A HELOC is ideal for home improvements, offering flexibility as costs may change. It allows you to finance renovations without finalizing costs upfront, making it a smart choice for dynamic projects.
Consolidating high-interest debt
The average 2023 consumer debt in California was $148,428. Using a HELOC for debt consolidation can simplify payments and reduce interest rates, helping manage multiple debts efficiently.
Education expenses
Using a HELOC for education expenses offers lower interest rates than other debts. It can cover tuition, books and housing, making it a practical choice for funding education.
Investment properties
A HELOC can finance investment properties, offering flexibility and potential tax benefits. Make sure to shop around to find the best HELOC lenders for investment property and secure the best rates and favorable terms.
Understanding the steps to apply for a HELOC in California can help you navigate the process with confidence. We've simplified this journey into six steps below.
Start by checking your credit score, which can influence your approval chances. The average credit score in California is 722, based on Experian data for the third quarter of 2023. A higher score may improve your chances of approval. Additionally, evaluate your debt-to-income ratio and home equity to gauge your financial health and readiness for a HELOC.
Comparing rates from different lenders in California can help you secure the best HELOC deal. Look beyond interest rates and consider other features such as repayment terms, fees and the option to apply for a fixed-rate HELOC to ensure you choose a lender that aligns with your financial needs and goals.
Preparing the necessary documents in advance can streamline your HELOC application process. Commonly required documents include proof of income, recent tax returns and mortgage and home value information.
When you're ready to apply for a HELOC, most lenders offer the convenience of online applications. If your lender has a physical branch, you can also apply in person. Ensure all information is accurate and complete to avoid errors or omissions that could delay the process.
Some lenders may require a home appraisal to determine your property's current market value. A home appraisal involves a professional assessment of your home's value, which helps the lender decide on the loan amount you qualify for.
The approval process for a HELOC can take anywhere from two to six weeks. Once approved, you'll proceed to the closing process, which involves signing documents and potentially paying closing costs. Some lenders may offer to cover part of these costs, so it's worth inquiring about any available options.
According to Experian, the average HELOC limit in California in the third quarter of 2023 was $190,080. The amount you can borrow with a HELOC is generally tied to the equity you have in your home, meaning the more equity you have, the higher your potential credit limit.
Check out the table below to see the range of credit lines offered by California lenders in our database.
| Bank of America | $15,000 to $1,000,000 |
| Flagstar Bank | $10,000 to $1,000,000 |
| HSBC Bank USA | Up to $500,000 |
| PNC Bank | $10,000 to $1,000,000 |
| U.S. Bank | $25,000 to $750,000 |
When choosing a lender for a HELOC, a local bank or credit union may not charge you as many fees as an online lender or mortgage broker (if they charge you any fees at all). Usually you just need to pay for the appraisal fee, which can be anywhere from $150 to $500. Although an online lender may advertise a better rate, if it’s charging thousands of dollars in fees, it may not be the best financial decision to take the perceived lower rate.
U.S. Bank is the best HELOC lender in California with a MoneyGeek score of 96 out of 100. It excels in customer service and education, reputation and transparency and has an efficient application process.
When looking for the best HELOC lenders for bad credit, focus on lenders that offer flexible terms, consider alternative credit data and have experience working with borrowers with lower credit scores.
Consider interest rates, fees, borrowing limits, repayment terms and lender reputation when selecting a HELOC lender.
Common fees to compare include origination fees, annual fees, application fees and early closure fees.
The typical draw period for HELOCs is 10 years, but some lenders may offer more flexible options.
Look for lenders that offer fixed-rate HELOC options or allow interest-only payments during the draw period.
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 California 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.
