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The Best Home Equity Loans in California for All Home Types
California homeowners seeking to borrow against their home’s value have several and flexible lending options. However, not all equity borrowing options are created equal. The best home equity loans in California offer competitive rates, transparent fees, and favorable borrowing terms to meet a variety of needs.
Whether you’re funding home improvements, consolidating credit card debt, or investing in more real estate, We’re highlighting the best home equity lenders offering fixed-rate home equity loans, equity lines of credit (HELOCs), or both. We’ve chosen the best based on borrower qualifications, loan features, and customer satisfaction.
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Trusted Company Reviews #1 Pick for 2025
- Home equity and HELOCs available
- Multiple financial products available beyond home equity
- Requires just 15% equity in your home
Why we love it 💖
Lendingtree stands on top of the competition by offering not only home equity loans and variations, but numerous other financial products through its marketplace platform as well.
Top Home Equity Loan Lenders in California
- Quick application process and funding
- Approval qualifications vary by lender
- Find rates across companies simply
- Offers access to several types of financial services
- Application doesn’t affect credit score
LendingTree isn’t a lender. It’s a marketplace that helps Californians compare offers for home equity loans and HELOCs, among many other financial tools. You can compare several lenders at once without multiple credit pulls, making it easier to find the best terms and protecting your credit score in the process.
- Fast comparison of multiple lenders
- Offers both equity loan and line of credit options
- Not a direct lender
- Customer service quality depends on your selected lender
- Minimum of $50,000 HELOC required
- No origination fees or prepayment penalties
- Borrowers can also include vacation homes and investment properties
- Payments available quickly after approval
- Better's rates are often higher than the national average
- Entirely online applications available
Better Mortgage is a fully online lender offering both home equity loans and HELOCs. It eliminates traditional fees, including annual fees, origination charges, and hidden costs, making it ideal for Californians who prefer convenience and cost savings.
- Streamlined approval process
- Strong customer satisfaction ratings
- Limited in-person support
- Some customers report higher-than-average interest rates
- No application fees
- Loans require a home appraisal as part of the application
- Online or in-app applications available
- Does not advertise mortgage rates online
- Offers home equity loans for investments or vacation homes
- Home equity loans can only reach 80 percent of a property's value
Rocket Mortgage is a top pick for its simple online process and fast approvals. It offers fixed rate home equity loans with no surprises in monthly payments. While it doesn’t offer a home equity line, it remains ideal for borrowers who want stability and clear payment terms.
- Competitive interest rates
- Best for lump-sum home improvements and debt consolidation
- No available HELOC option
- Requires higher credit scores than some alternatives
- Can borrow up to $500,000 and 100% of home value
- Has high customer review ranks
- Home equity loans have fixed rate
- Has operated for more than 90 years
Navy Federal Credit Union serves active-duty military, veterans, and their families. It offers both home equity loans and equity lines of credit with excellent terms and low fees. Its support and educational tools cater specifically to military households, making it a standout provider in California’s military communities.
- Low fees and competitive rates
- Excellent support for military borrowers
- Membership required
- Not available to all civilians
- Maximum of 90 percent of home value for equity loans
- Loans must be at least $35,000, higher than many competing lenders
- Repayment terms of 10, 15, 20, or 30 years
- HELOCs and cash-out refinancing are available
- Phone or online applications are available
Discover offers fixed-rate home equity loans with no added fees, application fees, or hidden charges. Its fixed structure is ideal for homeowners who want consistent monthly payments. However, it doesn’t offer a HELOC option.
- No extra fees
- Great for debt consolidation and remodeling projects
- No home equity line of credit option
- Generally requires a higher credit score than its competitors
What Is a Home Equity Loan?
As you pay down your mortgage, you build equity in your home, which is the monetary portion you truly own. You can borrow against that equity using a home equity loan or HELOC, using the home as collateral. These funds are useful for various purposes, including home improvements, medical bills, or making major purchases.
Lenders determine the amount you can borrow based on your equity, income, credit limit, and your loan-to-value ratio (LTV). These loans are typically tax-deductible when used for property improvements, though tax rules may vary. It’s essential to note that the interest is not deductible for most other uses. Consult a tax professional for more information.
Home Equity Loan vs. HELOC
Both options allow you to tap into your home’s equity, but they differ in structure and repayment terms.
Home Equity Loan
- Provides a lump sum of money upfront
- Feature fixed monthly payments with a fixed rate
- Ideal for single large expenses like renovations or debt consolidation
- Predictable payment structure offers a budget-friendly option
HELOC (Home Equity Line of Credit)
- Works as a revolving line of credit
- Features a draw period followed by a repayment period
- Interest often, but not always, based on variable interest rates
- Ideal for flexible or ongoing expenses
Which Is Better for California Homeowners?
A home equity loan is great for California residents seeking a one-time payout for significant expenses, like a kitchen remodel or debt consolidation, with a fixed APR and set monthly payments.
It’s also useful for financing investment properties or other large upfront costs. In fact, some lenders allow you to get home equity loans on existing investment properties. However, extra rules apply in those situations.
On the other hand, a HELOC is more flexible. You can access funds as needed throughout the draw period, making it an excellent choice for funding projects that evolve over time. Some lenders and online platforms now offer fixed-rate HELOCs for better payment predictability.
Related Article: Can I Get a Home Equity Loan On Investment Property?
Comparing the Best Home Equity Loans in California
California’s real estate market is as diverse as its landscape, from coastal cities like San Diego and San Francisco to suburban and rural areas. Borrowers in California experience higher home values than many parts of the County, which affects loan sizes, interest rate offers, and combined loan-to-value ratios.
We evaluated the lenders below based on many factors to determine what each is best at to help you choose the one that’s right for you. Here are the primary factors.
- Interest rate structures, including fixed and variable rates
- Qualification criteria, such as income, credit score, and LTV
- Fees and terms, including any annual fees, repayment period, and loan types available
- Customer support specifics
- Other financial products available
How to Get the Best Home Equity Loan in California
Getting the best home equity financing in California requires more than picking a top lender. By evaluating your credit, understanding your equity, and comparing offers, you’ll maximize your approval odds and will be more likely to secure better terms.
1. Review Your Finances
Check your credit score, income, and debt-to-income ratio. Lenders generally offer better rates to borrowers with scores above 700, and minimum score requirements vary.
2. Calculate Your Equity
Subtract your mortgage balance from your home’s current appraised value. Lenders typically allow borrowing up to 80% to 90% of your existing equity. Many lenders can assist you in determining your home’s value and other calculations.
3. Compare Lenders
To compare lenders, consider the following factors. Keep in mind that many online lenders and marketplace platforms, like LendingTree, offer a pre-qualification step that allows you to shop around without affecting your credit score until you choose a loan product and officially apply.
- Interest rates
- Type of rate, such as fixed vs. variable
- Fees, including origination, application, or any membership or annual fees
- Customer support reviews
- Available loan amounts
4. Submit Your Application
After choosing a lender and loan product, be prepared to share these documents with your chosen provider. Remember that making a formal application will incur a hard inquiry on your credit report and cause a temporary reduction of your credit score.
- Proof of income
- ID and residency documents if applicable
- Recent mortgage statement
- Home valuation documents
- Bank statements
- Tax records
Whether you live in San Diego, Sacramento, or the heart of Silicon Valley, leveraging your home’s equity can be a smart financial move if done right. Be sure to compare HELOCs and fixed-rate home equity loans based on your needs and budget.
Related Article: Home Equity Loan Vs Personal Loan: Pros, Cons, Choices
Also check out: Best Personal Loans for Fair Credit
Frequently Asked Questions
Home equity loan rates in California typically range from 6% to 10%, depending on factors like your credit score, loan-to-value ratio, loan amount, and whether you choose a fixed or variable rate. Borrowers with excellent credit and significant equity often qualify for the lowest rates. Rates can also vary by lender, especially between banks, credit unions, and online platforms.
The cheapest way to access equity in your home is typically through a home equity loan or HELOC with a low interest rate and minimal fees. A HELOC may offer lower upfront costs and flexibility, while a fixed-rate home equity loan provides predictable payments. Choosing a lender with no annual or application fees—such as a credit union or online lender—can reduce costs even further.
If you take out a $100,000 home equity loan with a 20-year repayment term and an interest rate of 7.65%, your estimated monthly payment would be around $814.79. This monthly payment includes both the principal and the interest and remains fixed if you’re on a standard fixed-rate loan.
Keep in mind, your actual monthly payment could vary depending on your credit score, loan term, lender fees, and whether you choose a fixed or variable interest rate. Some lenders may also offer shorter or longer repayment terms, which can significantly affect how much you pay each month.
Tip: Always compare offers from multiple lenders and consider using a loan calculator to estimate your monthly payment based on your specific situation.