Best HELOC Lenders in California (December 2024)

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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. BMO Bank is the runner-up, scoring 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's equity, outstanding mortgage balance and credit score.

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Comparing rates can help you find lenders that meet your needs. MoneyGeek compiled the best HELOC rates in California, updated weekly to assist you.

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 APR8.80%
Draw Period10 years
Repayment Period20 years
Time to Receive Funds3 Business Days
PROS
  • Access up to $1 million
  • Provides a 0.50% autopay discount
  • Option to lock in a fixed interest rate
CONS
  • Up to $500 early closure fee
  • $25,000 minimum line amount
  • Closing must be done at a local branch

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 APR8.88%
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
  • Can lock in your balance at a fixed rate
CONS
  • $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. The full amortization schedule shows how much 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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Credit Payoff Schedule for Home Equity Line

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Best HELOC Lender in California for Affordability

Company logo for Western Alliance Bank
Western Alliance Bank
MoneyGeek Score:
93/ of 100

Minimum Credit ScoreUndisclosed
Average HELOC APR7.75%
Draw PeriodUndisclosed
Repayment PeriodUndisclosed
Time to Receive FundsUndisclosed
PROS
  • Has a mobile app for easy account management
CONS
  • Very little information about HELOC on its website

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 APR9.80%
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
  • Allows switching between variable and fixed rates
CONS
  • $50 annual fee
  • $100 fee for rate lock/unlock
  • $199 to $499 origination fee

What You Can Use a HELOC for in California

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.

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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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    Funding education

    Using a HELOC for education expenses offers lower interest rates than other debts. It can cover tuition, books and housing.

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    Investment properties

    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.

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. 1
    Review your financial health

    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.

  2. 2
    Compare rates in California

    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.

  3. 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. 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. 5
    Undergo a home appraisal

    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.

  6. 6
    Wait for approval and closing

    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.

Know How Much You Can Borrow in California

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

How do lenders determine how much equity a homeowner can borrow against in a HELOC?

Credit & Mortgage Expert

Most lenders will allow you to take out up to 90% of your home's equity. For example, if your home is appraised at $400,000 and you owe $200,000 on your mortgage, you could potentially take out up to $160,000 on a HELOC if you meet the requirements of that lender.

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. We allocated scores based on including or excluding certain desirable features in various critical categories.

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Our analysis, completed in December 2024, 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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