Home Equity Loan Rates in California

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.

Key Takeaways

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Higher LTV ratios lead to higher rates. The average APR for a 15-year HEL in California with an 80% LTV is 8%, compared to 8.2% for a 90% LTV.

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HEL rates vary by city in California. For example, for 15-year loans, Beale AFB's average APR is 7.9%, whereas Galt's is 10.1%.

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Different lenders offer varying rates for the same loan types. Star One Credit Union's average APR is 5.8%, whereas Valley Strong Credit Union's is 9.9%.

MoneyGeek examined 77 different banks and credit unions in California using S&P Global's SNL Depository Rates dataset to stay current on the latest home equity loan rates.

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This data is accurate as of November 2024.

77Lenders Analyzed

Current Home Equity Loan Rates in California

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.

10Year7.8%
15Year8.0%
5Year7.7%

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.

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HOME EQUITY LOANS VS. HELOCS IN CALIFORNIA

Home equity loans and home equity lines of credit (HELOCs) are popular options for homeowners to tap into their home's equity. In California, home equity loan rates are fixed, averaging 7.9%, while the best HELOC rates in California are variable, averaging 8.5%.

Fixed rates mean your monthly payments remain consistent, which can help with budgeting and financial planning. On the other hand, variable home equity line of credit (HELOC) rates in California can start lower but may increase, leading to higher payments over time. Understanding these differences can help you choose the right option for your financial situation.

Home Equity Loan Rates by LTV Ratio

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.

Data filtered by:Results filtered by:
Repayment Terms:
Repayment Terms:10Year
7.8%7.9%

Home Equity Loan Rates by City in California

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.

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City:
City:Los Angeles
10Year8.0%
15Year8.2%
5Year7.8%

Home Equity Loan Lenders in California

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.

Data filtered by:Results filtered by:
City:
City:Los Angeles
SchoolsFirst Federal Credit Union6.7%
Water and Power Community Credit Union7.0%
USC Credit Union7.4%
Los Angeles Police Federal Credit Union7.5%
Arrowhead Central Credit Union7.5%
Credit Union of Southern California7.5%
Certified Federal Credit Union7.6%
First City Credit Union7.6%
LA Financial Federal Credit Union7.8%
Rize Federal Credit Union8.1%
The Golden 1 Credit Union8.2%
Justice Federal Credit Union8.4%
BMO BANK NATIONAL ASSOCIATION8.6%
U.S. Bank National Association8.8%
Baxter Credit Union8.9%
Kinecta Federal Credit Union9.0%
UNIFY Financial Federal Credit Union9.5%
Banner Bank9.6%
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COMPARING HOME EQUITY LOAN RATES: BANKS VS. CREDIT UNIONS

Including credit unions in your lender options can be beneficial, especially for home equity loan rates in California. Commercial banks offer an average APR of 8.7%, while credit unions provide a lower rate of 7.8%. Keep in mind that credit unions often have stricter membership requirements.

How to Get the Best Home Equity Loan Rate in California

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:

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    Compare lenders

    Lenders may offer different APRs for the same loan amount and credit profile. For example, Scient Federal Credit Union offers an average APR of 6.4%, while Valley Strong Credit Union offers 9.9%. Comparing home equity loan lenders in California can help you find better rates.

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    Increase your home's equity

    Having more equity in your home can result in more competitive rates from lenders. California homeowners can increase their home's equity by installing solar panels or earthquake retrofitting.

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    Improve your credit score

    Increasing your credit score can lead to more competitive home equity loan rates. Pay bills on time and reduce credit card debt to improve your credit score. The average credit score in California is 722, according to Experian.

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    Decrease debt-to-income ratio

    A lower debt-to-income (DTI) ratio — the percentage of your monthly income that goes toward paying debts — can lead to better rates as lenders see you as a less risky borrower.

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Debt-to-Income Ratio Calculator

Provide your income and recurring payments to calculate your DTI.

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FAQ About Home Equity Loan Rates in California

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

What is the interest rate on a home equity loan in California?

How do you calculate your home equity in California?

Do home equity loan rates vary between cities in California?

Does a home equity loan in California have tax benefits?

What are possible drawbacks of securing a home equity loan in California?

How long does it take to get a home equity loan in California?

How do you get a home equity loan in California?

What can I use my funds for? Are there any home equity loan use restrictions in California?

Can you only take out a home equity loan in California on your primary residence?

What other home equity products can you consider if you want to tap into your home's equity in California?

What's the difference between a HELOC and a home equity loan?

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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