Updated: December 21, 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. BMO Bank is the runner-up, scoring 94 out of 100.
The average HELOC limit in California is $190,080. How much you can borrow depends on your home's equity, outstanding mortgage balance and credit score.
Comparing rates can help you find lenders that meet your needs. MoneyGeek compiled the best HELOC rates in California, updated weekly to assist you.
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. The full amortization schedule shows how much 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
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Home equity lines of credit (HELOCs) are a popular financial tool in California because they offer homeowners flexibility in accessing funds tied to their property's value. Here are some common ways to use a HELOC to meet your financial needs.
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.
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.
Using a HELOC for education expenses offers lower interest rates than other debts. It can cover tuition, books and housing.
A HELOC can finance investment properties, offering flexibility and potential tax benefits. Shop around to find the best HELOC lenders for investment properties and secure the best rates and 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.
Check 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. Also, evaluate your debt-to-income ratio and home equity to gauge your financial health and readiness for a HELOC.
Comparing rates from different lenders can help you secure the best HELOC deal. Also, consider repayment terms, fees and the option to apply for a fixed-rate HELOC to 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 an appraisal to determine your property's current market value. A home appraisal involves a professional assessment of your property's value, which helps the lender decide on the loan amount you qualify for.
A HELOC approval process can take 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.
The average HELOC limit in California in the third quarter of 2023 was $190,080, according to Experian. The amount you can borrow is generally tied to your home equity. 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 shopping for a HELOC, most people focus only on the interest rate. Instead, you should focus on the annual percentage rate (APR) as that is the true cost of what you are paying back. Also consider any fees the lender may be charging you. A lower rate with higher fees can be deceptive.
U.S. Bank is the best HELOC lender in California, with a MoneyGeek score of 96 out of 100. It excels in customer service, education, reputation and transparency, with an efficient application process and quick approval.
When looking for the best HELOC lenders for bad credit, focus on those offering flexible terms, competitive rates and options for borrowers with low credit scores.
Consider interest rates, fees, borrowing limits, repayment terms and lender reputation when choosing a HELOC lender.
Common fees to compare include origination fees, annual fees, application fees and early closure fees.
The draw period for HELOCs usually lasts 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. We allocated scores based on including or excluding certain desirable features in various critical categories.
Our analysis, completed in December 2024, 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.
