Best HELOC Rates in California

Key Takeaways

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Higher loan-to-value (LTV) ratios lead to higher rates. The average APR for a HELOC in California with an 80% LTV is 8.7%, compared with 8.9% for a 90% LTV.

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HELOC rates vary by city in California. Mariposa has an average APR of 7.0%, whereas Phelan's is 11.2%.

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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 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 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:

Data filtered by:Results filtered by:
Line Limit:
Line Limit:$100,000

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.

Data filtered by:Results filtered by:
City:
City:Los Angeles

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 Union4.3%
1st United Credit Union6.5%
Diamond Valley Federal Credit Union7.0%
HTLF Bank7.0%
Glendale Federal Credit Union7.3%

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.

Data filtered by:Results filtered by:
City:
City:Los Angeles
HomeStreet BankCommercial Bank7.5%
SchoolsFirst Federal Credit UnionCredit Union8.0%
Credit Union of Southern CaliforniaCredit Union8.0%
Justice Federal Credit UnionCredit Union8.3%
USC Credit UnionCredit Union8.4%
American Airlines Federal Credit UnionCredit Union8.5%
Western Alliance BankCommercial Bank8.5%
Wescom Central Credit UnionCredit Union8.5%
University Credit UnionCredit Union8.5%
Schools Federal Credit UnionCredit Union8.5%
Rize Federal Credit UnionCredit Union8.5%
Northrop Grumman Federal Credit UnionCredit Union8.5%
LA Financial Federal Credit UnionCredit Union8.5%
Certified Federal Credit UnionCredit Union8.5%
Baxter Credit UnionCredit Union8.5%
First City Credit UnionCredit Union8.8%
The Golden 1 Credit UnionCredit Union8.8%
Los Angeles Federal Credit UnionCredit Union9.0%
U.S. Bank National AssociationCommercial Bank9.1%
First Entertainment Credit UnionCredit Union9.1%
Kinecta Federal Credit UnionCredit Union9.1%
BMO BANK NATIONAL ASSOCIATIONCommercial Bank9.3%
Southland Credit UnionCredit Union9.3%
Los Angeles Police Federal Credit UnionCredit Union9.3%
Water and Power Community Credit UnionCredit Union9.5%
Self-Help Federal Credit UnionCredit Union9.5%
Arrowhead Central Credit UnionCredit Union9.5%
Banner BankCommercial Bank9.7%
California Credit UnionCredit Union9.8%
Comerica BankCommercial Bank9.8%
UNIFY Financial Federal Credit UnionCredit Union9.9%
Bank of AmericaCommercial Bank9.9%
Rancho Federal Credit UnionCredit Union10.0%
COMPARING HELOC RATES IN CALIFORNIA: BANKS VS. CREDIT UNIONS

HELOC rates in California vary between banks and credit unions. Commercial banks typically have higher rates, with the best rate currently averaging 9.0%. In contrast, credit unions in California offer an average APR of 8.7%, as these not-for-profit institutions often provide more competitive rates.

When deciding between banks and credit unions , consider more than just rates. Banks might offer greater convenience, while credit unions are known for better customer service and lower fees. Be sure to check membership requirements for credit unions and look out for any hidden fees or rate adjustment clauses with 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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Credit Payoff Schedule for Home Equity Line

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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:

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    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.

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    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.

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    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.

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    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.

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    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 8.7%, compared to 8.0% for home equity loans. The difference stems from HELOCs' variable rates, which can rise over time, while home equity loans have fixed rates that remain stable.

  • HELOCs are flexible credit lines with variable rates, making them volatile in rising interest rate environments. This can lead to increased costs for homeowners over time.
  • Home equity loans provide a lump sum with a fixed rate, offering stability. They are ideal for situations where predictable payments are preferred.

Both options let you borrow against your home's equity, but your decision depends on whether you value the flexibility of a HELOC or the predictability of a home equity loan.

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?
What fees are commonly associated with HELOCs in California?
How do HELOC rates in California compare to home equity loan rates?
How do HELOC rates in California vary between banks and credit unions?
What's the best HELOC rate in Los Angeles? How does it compare to the current HELOC rate in California?

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.

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This data is accurate as of October 16, 2024.

133Lenders Analyzed

About Zachary Romeo, CBCA


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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.