Best HELOC Lenders in California (October 2024)

Key Takeaways

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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.

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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.

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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.

Overall Best HELOC Lender in California

Company logo for U.S. Bank
U.S. Bank
MoneyGeek Score:
96/ of 100

Minimum Credit Score660
Average HELOC APR9.05%
Draw Period10 years
Repayment Period20 years
Time to Receive Funds3 Business Days
PROS
  • California homeowners can access up to $1 million
  • Provides a 0.50% autopay discount
  • Option to lock in a fixed interest rate
CONS
  • Minimum line amount is $25,000
  • Closing must be done at a local branch
  • Charges an early closure fee up to $500

Runner-Up for Best HELOC Lender in California

Company logo for BMO BANK
BMO BANK
MoneyGeek Score:
94/ of 100

Minimum Credit Score650
Average HELOC APR9.25%
Draw Period10 years
Repayment Period20 years
Time to Receive Funds3 Business Days
PROS
  • Offers a 0.25% rate discount for automatic payments
  • Provides a remote closing option for HELOC applications
  • Option to lock in your balance at a fixed rate
CONS
  • Charges a $75 annual fee
  • Charges a closing cost recoupment fee for accounts closed within 36 months
  • Locking in your rate costs $75 after closing

Calculate Your Monthly Payment

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.

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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Repayment Period Payment

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Best HELOC Lender in California for Affordability

Company logo for Flagstar Bank
Flagstar Bank
MoneyGeek Score:
93/ of 100

Minimum Credit ScoreUndisclosed
Average HELOC APR11.24%
Draw Period10 years
Repayment Period20 years
Time to Receive FundsUndisclosed
PROS
  • Provides a 0.25% autopay discount
  • Offers credit limits up to $1 million
  • Allows interest-only payments during the draw period
CONS
  • Charges a $75 annual fee
  • Lines over $500,000 require borrower-paid Lender's Title Insurance
  • No hardship assistance for HELOC

Best HELOC Lender in California for Service Quality

Company logo for PNC Bank
PNC Bank
MoneyGeek Score:
100/ of 100

Minimum Credit ScoreUndisclosed
Average HELOC APR10.98%
Draw PeriodUndisclosed
Repayment Period5 to 30 years
Time to Receive FundsNext Day After Closing
PROS
  • Borrow up to $1 million
  • Provides a 0.25% interest rate discount for automatic payments
  • Allows you to switch between variable and fixed rates
CONS
  • Charges a $50 annual fee
  • Has a $100 fee each time you lock or unlock your interest rate
  • Charges an origination fee between $199 and $499 based on total line amount

What You Can Use a HELOC for in California

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.

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    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.

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    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.

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    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.

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    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.

How to Apply for a HELOC in California

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.

1
Review your financial health

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.

2
Compare rates in California

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.

3
Prepare required documentation

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.

4
Submit an application

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.

5
Undergo a home appraisal

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.

6
Wait for approval and closing

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.

Know How Much You Can Borrow in California

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 USAUp to $500,000
PNC Bank$10,000 to $1,000,000
U.S. Bank$25,000 to $750,000
Ask the experts:

What risks or potential downsides should homeowners consider when choosing a lender for a HELOC?

Credit & Mortgage Expert

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.

FAQ: Best HELOC Lenders in California

Who is the Best HELOC lender in California?
How to find the best HELOC lenders for bad credit in California?
What factors should I consider when choosing a HELOC lender in California?
What are common fees associated with HELOCs that I should compare in California?
What is the typical draw period for HELOCs, and does it vary between lenders in California?
How can I find a lender with flexible repayment options in California?

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.

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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.

101Lenders Analyzed

About Zachary Romeo, CBCA


Zachary Romeo, CBCA headshot

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.


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