Home Equity Loan Rates in California (November 2024)

The equity in your home that you can access and borrow is known as tappable equity. According to TransUnion, tappable equity in California averages $366,000. A home equity loan (HEL) can help you maximize your home equity, whether you're looking to fund home improvement projects or consolidate debt.

California's home equity loan rates are slightly higher than national averages — 7.8% APR for a 10-year term (7.7% nationally) and 8% APR for a 15-year term (7.9% nationally). We've compiled detailed insights on current home equity loan rates in California, including city-specific rates, top lenders and tips on securing the best rates for using your home's equity.

The current average APR for a 15-year home equity loan in California is 8%, but several factors might affect what lenders offer. For instance, a higher credit score can lead to a lower APR, whereas a larger loan amount might increase it. Repayment terms also play a role in determining rates. Below is a table comparing the current home equity loan rates in California across different loan terms.

Interest rates for home equity loans change daily. Keeping track of these changes can help you pay less in interest over the life of the loan, saving you money. It also allows you to accurately plan your budget and future expenses, ensuring you're borrowing within your means.

For example, a 15-year home equity loan with an 8% APR results in a monthly payment of $478 and a total interest of $36,009. In contrast, a 10-year loan with a 7.8% APR has a monthly payment of $601 and a total interest of $22,164.

The rate you qualify for depends on your loan-to-value ratio, which measures how much you owe on your mortgage compared to your home's appraised value. To calculate your LTV ratio, divide your current mortgage balance by your home's appraised value and multiply by 100. For instance, if your home is valued at $300,000 and you owe $240,000, your LTV ratio is 80%.

A higher LTV ratio presents a higher risk to lenders, resulting in higher rates. In California, the average APR of a 15-year equity loan with an LTV ratio of 80% is 8%, compared to 8.2% for an LTV ratio of 90%. Use the table to see what rates you might qualify for based on your LTV ratio.

Average APRs also vary between cities in California. In larger or more densely populated cities, more lenders compete, which can lead to lower interest rates. Additionally, differences in property taxes or local fees can influence rates, as these affect overall borrowing costs.

In California, Coachella has an average APR of 6.5%, while Idyllwild has an average APR of 9.6%. Explore the table below to see the average home equity loan rates across California cities.

Home equity loan rates in California can differ widely depending on the lender's policies and strategies. For instance, Star One Credit Union offers the lowest average APR at 5.8%, while Valley Strong Credit Union has the highest at 9.9%.

Comparing rates and terms from different lenders is crucial to securing the lowest home equity loan rates. Explore the interactive table below to see which lenders offer the best rates in your city.

Securing the best possible home equity interest rates can lower your monthly payments and overall borrowing costs, freeing up funds for other financial priorities. To obtain the best home equity loan rates in California, consider these strategies:

MoneyGeek addresses common questions about home equity loan rates in California, offering clear and reliable information to homeowners in the Golden State.