A HELOC can be used for any major expenses like college, medical or emergency bills. It's great for homeowners with equity in their homes who are committed to managing their credit responsibly and eliminating debt.
Home equity line of credit rates in California range from 0.99% to 18%, with Bank of America offering the most competitive rate. Even so, it’s important to shop around before applying for a HELOC to ensure that you find the best lender for your needs.
Home Equity Line of Credit (HELOC) Rates for 2023
The table below provides an overview and comparison of home equity line of credit rates, along with details such as basic minimum credit score requirements and annual fees. The information displayed was updated as of May 2022. Please be aware, however, that the information in this table may change as lenders update their terms and conditions.
Lender | APR | Loan Amount | Min. Credit Score Requirement | Repayment Terms | Annual Fees | Pre-Approval Time |
|---|---|---|---|---|---|---|
0.99% introductory APR | $25,000 to $1,000,000 | 660 | 10-year draw period and | None | N/A | |
Not specified | Not specified | Not specified | Not specified | Not specified | Not specified | |
1.99% special | $25,000 to $1,000,000 | Not specified | 10-year draw period, | Not specified | Not specified | |
4.20% to 9.35% | $15,000 to $750,000 | 730 | 10-year draw period, | $90 | Not specified | |
4.65% to 9.99% | $35,000 to $300,000 | 620 | 10 to 30 years | None | 1 to 2 weeks | |
Starting at 3.99% | $10,000 to $500,000 | Not specified | 10-year draw period | $75 | Not specified | |
Starting at 4.64% | $10,000 to $500,000 | Not specified | 10-year draw period | None | 24 hours | |
Starting at 3.24% | $15,000 to $400,000 | 620 | 5 to 30 years | 3% to 4.99% | 24 hours | |
Starting at Prime - 0.50% | Starting at $17,500 | Not specified | 10-year draw period, | $50 | Not specified | |
Starting at 3.34% | Starting at $25,000 | 740 | Not specified | $50 | Not specified | |
3.49% for 6 months | Starting at $5,000 | Not specified | 15-year draw period with | None | 24 hours | |
3.75% to 10.63% variable | $10,000 to $500,000 | Not specified | 10-year draw period, | None | Not specified |
MoneyGeek’s Picks for Best HELOC Lenders in California
At MoneyGeek, we help you find the best HELOC lender for your financial needs. If you're interested in getting a home equity line of credit, it's important that you learn about the different lenders offering HELOCs. Not all banks offer this type of loan, and those that do tend to be national banks rather than local ones. MoneyGeek recommends checking with your local credit union if a national bank turns you down.
Best Overall HELOC Lender in California: Bank of America
- Bank of America
Bank of America offers a special introductory rate of 1.99% for six months.
- 6.740% for 6 months, then 9.550%APR Range
- $25,000 to $1,000,000Loan Amount Range
- 10-year draw period; 20-year repayment periodRepayment Terms
- NoneAnnual Fees
- Not specifiedPre-Approval Time
on Bank of America Website
Best HELOC Lender for Good Credit in California: U.S. Bank
- U.S. Bank
Borrowers can opt to lock in a fixed interest rate.
- 4.20% to 9.35%APR Range
- $15,000 to $750,000Loan Amount Range
- 10-year draw period; unspecified repayment periodRepayment Terms
- $90Annual Fees
- Not specifiedPre-Approval Time
on U.S. Bank Website
Best HELOC Lender for Bad Credit in California: Figure
- Figure
Figure has a low minimum credit requirement of 620 — one of the lowest among lenders in California.
- From 6.55% to 15.54%APR Range
- $15,000 to $400,000Loan Amount Range
- 5 to 30 yearsRepayment Terms
- NoneAnnual Fees
- 24 hoursPre-Approval Time
on Figure Website
Best HELOC Lender for Competitive Rates in California: PenFed
- PenFed Credit Union
PenFed offers the lowest introductory APR of 0.99% for six months.
- 0.99% for 6 months; 4.25% to 18% thereafterAPR Range
- $25,000 to $1,000,000Loan Amount Range
- 10-year draw period; 20-year repayment periodRepayment Terms
- $99Annual Fees
- Not SpecifiedPre-Approval Time
on PenFed Credit Union Website
HELOC vs. Home Equity Loans
Both home equity loans and home equity lines of credit allow you to borrow money using your home as collateral. You can determine which type of loan will work best for you by comparing the two.
A home equity loan is a loan that gives you access to the equity in your home. The interest and monthly payments are usually fixed during the life of the loan. If you like consistency, then you should consider this.
Meanwhile, a home equity line of credit works like a credit card, where you can borrow up to a certain amount during the draw period. The interest rate is variable, so you won’t pay the same amount every month.
To learn more about the differences between the two, you can use the table below.
HELOC | Home Equity Loan | |
|---|---|---|
Interest Rate | Adjustable interest rate | Fixed interest rate |
Monthly Payment | Changes depending on | Fixed monthly payments |
Repayment Terms | During the draw period, | Repayment starts |
Fund Disbursements | Borrowers can withdraw funds | Lump sum |
How to Apply for a HELOC
Nowadays, applying for a HELOC is easy. You can fill out an application online and avoid the hassle of applying in person at a physical branch. To qualify, you'll generally need to provide your personal details and contact information. After that, it's just a matter of waiting for approval.
Determine how much you need
Preparing a HELOC application requires that you determine how much money you need and consider if a HELOC is the appropriate loan for your situation. If you’re a responsible homeowner looking to consolidate loans, renovate your house, pay for or save up for college expenses or invest in the stock market, then a HELOC is probably right for you. However, if you only need a small amount of money for house repairs, then you should consider alternative funding options.
Assess your financial standing
Before applying for a home equity line of credit, you should consider your financial stability and your credit score. Lenders want to see that you have a clean credit history as well as a good credit-to-income ratio before granting you a HELOC.
Shop around and compare lenders
After you’ve determined how much money you need and assessed your capacity to pay off the debt, it's time to search for a lender. When researching HELOC options, you should carefully read their terms for any prepayment penalties or inactivity fees. Proper research will help you find the right lender for your needs and save you money in the long term.
Apply
Nowadays, applicants for HELOCs can choose to apply online, over the phone or in person at one of the lender’s physical branches. Borrowers should have all their application materials prepared, including verification documents.
Use funds wisely
When using a home equity line of credit, be sure to remember that it’s still a loan that must be repaid. If you fail to repay it, you may lose your home or incur more debt in the process.
Frequently Asked Questions About HELOCs
If you're interested in taking out a home equity line of credit, MoneyGeek is here to guide you through the process. We've answered some frequently asked questions about HELOCs below.
sources
- Bank of America. "Home Equity." Accessed June 7, 2022.
- Bank of America. "Home Equity Assumptions." Accessed June 7, 2022.
- Bank of America. "Home Equity Line of Credit Application." Accessed June 7, 2022.
- U.S. Bank. "Home Equity Line of Credit (HELOC)." Accessed June 7, 2022.
- U.S. Bank. "Home Equity FAQs." Accessed June 7, 2022.
- Figure. "Homeowners, We're Here for You." Accessed June 13, 2022.
- Figure. "Figure Home Equity Line FAQs." Accessed June 13, 2022.
- PenFed. "PenFed Home Equity Line of Credit (HELOC)." Accessed June 7, 2022.
- Internal Revenue Service. "Publication 936 (2021), Home Mortgage Interest Deduction." Accessed June 7, 2022.