HELOC rates in California rose from 4.5% in 2021 to around 9% in 2023. If this upward trend continues, homeowners might face higher costs. Consider locking in a rate now to avoid future increases.
HELOC
Best HELOC Rates in California (December 2024)
Updated: December 21, 2024
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Key Takeaways
Higher loan-to-value (LTV) ratios lead to higher rates. The average APR for a HELOC in California with an 80% LTV is 8.3%, compared with 8.6% for a 90% LTV.
HELOC rates vary by city in California. Mariposa has an average APR of 7.0%, whereas Wrightwood's is 11.2%.
Different lenders offer varying rates for the same loan types. San Francisco Fire Credit Union's average APR is 4.3%, whereas Flagstar Bank's is 11.2%.
Current HELOC Rates in California
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HELOC Rates in California by LTV Ratio
HELOC rates in California vary depending on your loan-to-value (LTV) ratio and line limit. A lower LTV is seen as less risky because you have more equity in your home. For instance, an 80% LTV means you've borrowed less against your home's value compared to a 90% LTV, reducing the risk of default on your HELOC.
The following table lets you filter between different loan amounts, offering a clearer view of what you may qualify for:
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Line Limit:$100,000
| 8.3% | 8.7% |
HELOC Rates in California by City
HELOC rates in California vary by city due to local housing markets and lender competition. For instance, cities with robust real estate markets might offer lower rates, minimizing lender risk.
Use the table below to filter by city and see average APRs for $50K and $100K HELOCs.
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City:Los Angeles
| $100,000 | 8.6% |
| $50,000 | 8.6% |
HELOC Rates in California by Lender
HELOC interest rates in California vary based on lenders' pricing strategies and risk assessments. The table below highlights the five lenders in California offering the lowest average APRs, helping you compare competitive rates.
| San Francisco Fire Credit Union | 4.3% |
| 1st United Credit Union | 6.0% |
| Educational Employees Credit Union | 7.0% |
| HTLF Bank | 7.0% |
| Merced School Employees Federal Credit Union | 7.0% |
HELOC rates today can vary significantly between lenders in the same city. Use the table below to filter lenders by city to compare average APRs and find the best rate in your area.
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City:Los Angeles
| HomeStreet Bank | Commercial Bank | 7.5% |
| USC Credit Union | Credit Union | 7.7% |
| American Airlines Federal Credit Union | Credit Union | 7.7% |
| University Credit Union | Credit Union | 7.8% |
| SchoolsFirst Federal Credit Union | Credit Union | 7.8% |
| Western Alliance Bank | Commercial Bank | 7.8% |
| Justice Federal Credit Union | Credit Union | 7.9% |
| Northrop Grumman Federal Credit Union | Credit Union | 8.0% |
| Credit Union of Southern California | Credit Union | 8.0% |
| Certified Federal Credit Union | Credit Union | 8.0% |
| Schools Federal Credit Union | Credit Union | 8.0% |
| Rize Federal Credit Union | Credit Union | 8.0% |
| LA Financial Federal Credit Union | Credit Union | 8.1% |
| Wescom Central Credit Union | Credit Union | 8.3% |
| First City Credit Union | Credit Union | 8.3% |
| Los Angeles Police Federal Credit Union | Credit Union | 8.5% |
| Baxter Credit Union | Credit Union | 8.5% |
| The Golden 1 Credit Union | Credit Union | 8.8% |
| BMO BANK NATIONAL ASSOCIATION | Commercial Bank | 8.8% |
| First Entertainment Credit Union | Credit Union | 8.9% |
| Arrowhead Central Credit Union | Credit Union | 9.0% |
| Self-Help Federal Credit Union | Credit Union | 9.0% |
| Southland Credit Union | Credit Union | 9.0% |
| Kinecta Federal Credit Union | Credit Union | 9.1% |
| U.S. Bank National Association | Commercial Bank | 9.3% |
| UNIFY Financial Federal Credit Union | Credit Union | 9.4% |
| Water and Power Community Credit Union | Credit Union | 9.5% |
| Bank of America | Commercial Bank | 9.6% |
| Banner Bank | Commercial Bank | 9.7% |
| California Credit Union | Credit Union | 9.8% |
| Rancho Federal Credit Union | Credit Union | 10.0% |
COMPARING HELOC RATES IN CALIFORNIA: BANKS VS. CREDIT UNIONS
HELOC rates in California vary between banks and credit unions, with commercial banks typically offering higher rates. Currently, the best HELOC rate among commercial banks in the state averages at 8.7%, while credit unions, which are not-for-profit institutions, offer a slightly lower average APR of 8.3%. This difference can be attributed to the operational structures of these financial institutions.
When choosing between the two, it's important to consider more than just rates. Banks may provide more convenience, while credit unions often excel in customer service and offer lower fees. Be sure to review membership requirements for credit unions and watch out for any hidden fees or rate adjustment clauses from both types of lenders.
Expert Answers About HELOCs
What advice do you have for homeowners who are considering a HELOC in today’s economic climate — should they act now or wait for more favorable conditions?
Credit & Mortgage Expert
As with anything there are pros and cons. Even though rates may be higher right now, the home values are also high. This could lead to you getting approved for more of a HELOC compared to if rates are lower but housing values decrease (not saying they will). In my opinion, it’s better to get a HELOC now and have it for when you need it. Also, HELOC rates are variable — so if rates go down, so will the rate on your HELOC.
HELOC Payment Calculator
HELOCs have become a popular tool for homeowners across the U.S. looking to tap into their home's equity. Use our California HELOC payment calculator to determine your monthly payments based on the amount drawn, APR and loan terms. Our calculator also provides a full amortization schedule, showing how much goes toward interest and principal over time. Understanding these details can help you manage your HELOC and plan for future payments.
California HELOC Payoff Calculator
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.
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How to Get the Best HELOC Rates in California
Finding the best HELOC rates in California can help you save thousands over the life of your loan. To secure the most competitive rate, consider these five strategies:
Maintain a strong credit score
California's average credit score is 722. Improving it can secure better rates by qualifying for more competitive lender offers.
Compare offers from multiple lenders
Settling for the first offer you receive may be costly. By shopping around, you can find competitive rates and even use offers to negotiate better terms.
Reduce your debt-to-income (DTI) ratio
Lenders favor borrowers with lower debt-to-income (DTI) ratios because it shows financial stability. Reducing your debt can make you a more attractive candidate for a lower rate.
Increase your home equity
The more equity you have, the less risk the lender assumes, which can lead to a lower rate. Paying down your mortgage or making home improvements can increase your equity.
Review closing costs and rate caps
Some lenders charge closing costs between 2% and 5%, whereas others don't. Compare rate caps to limit your costs as rates adjust over time.
HELOC Loan Rates vs. Home Equity Loan Rates in California
HELOC interest rates in California average 8.3% compared to 7.9% for home equity loans. This difference arises from HELOCs' variable rates, which can increase in response to market conditions.
- HELOCs are revolving credit lines with variable rates that adjust based on market trends. In rising interest rate environments, HELOC rates may climb, impacting long-term homeowner finances.
- Home equity loans provide a lump sum at a fixed rate, ideal for stable payments. They suit situations where predictability is preferred over flexibility.
When choosing between these products, consider whether you prioritize the flexibility of a HELOC or the stability of a home equity loan. Evaluate factors like your financial goals, risk tolerance, and the amount of equity in your home.
CONSIDERING A HELOC ALTERNATIVE? TRY A CASH-OUT REFINANCE
A cash-out refinance is a HELOC alternative that replaces your existing mortgage with a new, larger loan, providing cash access. Unlike HELOCs or home equity loans, it creates a new primary mortgage.
For example, if you have a loan backed by the Federal Housing Administration (FHA) and your home is valued at $300,000 with a $150,000 mortgage balance, an FHA cash-out refinance for $200,000 could give you $50,000 in cash, but your new loan payments will be based on $200,000.
FAQ: Best HELOC Rates in California
What are the current HELOC rates in California and how do they compare to national rates?
California's average HELOC rate is 8.3%, which matches the national average of 8.3%.
What fees are commonly associated with HELOCs in California?
Common fees include application fees, appraisal fees, annual fees, and early closure fees, but specifics vary by lender.
How do HELOC rates in California compare to home equity loan rates?
California's HELOC rates average 8.3%, while home equity loan rates are lower at 7.9%, which can be beneficial for those with bad credit.
How do HELOC Rates in California vary between banks and credit unions?
Banks in California offer HELOC rates averaging 8.7%, while credit unions offer lower rates at 8.3%.
What's the best HELOC rate in Los Angeles? How does it compare to the current HELOC rate in California?
The average HELOC rate in California is 8.3%, while Los Angeles's rates are slightly higher, averaging 8.6%.
MoneyGeek examined 133 different banks and credit unions in Florida using S&P Global's SNL Depository Rates dataset to stay current on the latest home equity line of credit rates.
This data is accurate as of December 13, 2024.
133Lenders Analyzed
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.