Transcript
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The speaker introduces the California installment of a state-by-state HELOC guide and explains the research approach. He also notes that viewers should comment with any better offers as rates and bank programs change over time.
Welcome back to the channel.You're currently listening to the series on how to find the right home equity line of credit in the second position in your state.Specifically, I'm going state by state, giving you the entire framework completely for free to help you obtain the right tools from the right banks so we can have a more efficient financial strategy as it pertains to accelerating yourdebt or leveraging debt to create more cash flow, create more income, create more financial freedom.So, with that being said, we are in the state of California.I did a ton of research and I was very very picky as to what banks made it to the whiteboard because there's so many banks in the state of California.And the comment section is also going to be a very valuable area in this video specifically.Anyone who lives in California, if there is a bank I did not mention that can beat what I have on the whiteboard, please comment below.
Especially as this video ages, you know, rates, banks will continue to put out different offers and different programs.So, I'm recording this video in August of 2026.The prime interest rate right now is 6.75%.So my parameter as to what banks made it to the board is the heliloc is as low as prime 6.75% or below prime and or an intro rate and at prime or below prime.All right.So that those are just the the key most important factors there.every other bank in California that I'm going to give as an honorable mention.I'm going to share out my screen so you can see all the banks that I researched and understanding that there's going to be some banks that may not pertain to you.Even if you live in the state of California, maybe you're northern, southern, south, uh, central, there's all different areas that these specific credit unions will cover and may not cover.
So, keep that in mind as well.Let's dive into the parameters real quick.
This section covers the framework to prepare before applying, including credit score, DTI, LTV, closing costs, intro periods, and how HELOC rates are tied to prime. The speaker also explains preferred payment structures and why relationship banking matters.
So, here on the lefth hand side of the board is everything you need to do in advance before you apply for any one of these home equity line of credits at any one of these banks.Make sure you follow this framework.It will save you so much time, money, and energy and will set you up for the best products that are available out there in the market.So, knowing what your credit score is, aiming for 720 or higher across the board, DTI 30% or less.LTV options, the lower the better in terms of the rate and the offers, so 79%.Closing cost zero or low.in the state of California that is near impossible to find uh zero closing cost or low closing cost.So that number typically is probably going to be in the thousand plus range.Although there are some banks that made it to the board with no closing costs.
As I said, did a lot of research to really find the best tools out there that are offering the best rates and the best offers at the moment.Inter rate anywhere from six to 12 months.There are some banks that will do three to five years, even longer than that.Interest rate, make sure you're looking at prime.So the So when you're reading the terms of any home equity line of credit, even in advance, you ask how is the home equity line of credit rate determined?And so they'll typically say is based off of prime rates plus a margin.Or they'll say it's based off prime Or they'll say it's based off prime minus a margin.So prime minus 0.25 prime minus.5 prime minus.1%.We want to be at prime minus or prime.Again, every state's different.Specifically with California, there's very little banks out there.
I honestly did not find one single bank that is prime minus.I found one.That's prime minus.1.So prime minus10, which is basically nothing.So instead of being at 6.75, you're at 6.65.Not a huge difference.So ideally, that's what we want to look for.Draw a period 10 to 20 years.Build a relationship.Build a relationship.Please, please, please.All that means is open up a checking and savings before you apply.So important.Make sure it's mobile banking friendly.Payment options revolving uh interest only or principle and interest.Unless it makes a difference, unless there's an incentive to go with principle and interest to get a lower rate, do that.I would recommend it.That's usually what I advise.If you are more disciplined and there is no incentive and you want to have an interest only helock, that just reduces the commitment for you to have to pay back the line during the draw period.
you are only obligated to pay interest.
The speaker presents the main banks that made the board and compares their intro rates, fees, draw periods, and credit limits. He then ranks his top choices based on overall value and fit.
With that being said, here are the top banks I found.Southland Credit Union, Ventura County Credit Union, Valley First Credit Union, Financial Partners Credit Union, Commonwealth Central Credit Union, and Credit Union of Southern California.All of these banks are at prime, so 6.75%.Southland has a fixed 5-year HELOC at prime, which is nice.Got to have a 700 credit score.Annual fees are waved.No closing.Mobile banking friendly.70% LTV with a max credit line of 500K.Ventura, it wasn't a whole lot of information.6-month intro, 3.99%.and then Prime afterwards.Valley First, 12 months, 4.99 Prime afterwards, no annual fees.Closing costs are high, anywhere from 3 to 2500 bucks.Although they do have a massive credit line max of 1.5 million, 10-year draw.So, from for my high income earners in California, you might be a little more attracted here and or if you have a ton of equity in your property.
Financial Partners Credit Union six-month intro 4.99 Prime afterwards max credit line 500K Commonwealth 10-year draw prime no intro but no closing no annual fee 400k max 80% LTV Credit Union of Southern California 3.99 12 months so the lowestand longest intro rate goes to Credit Union of Southern California prime is afterwards.500K max, 70% LTV, mobile banking friendly.If I were to put these things in order of preference, I am definitely leaning more toward Credit Union of Southern California.My number two pick is most likely going to be Valley First.Kind of get the benefit of everything and I think I'm willing to pay some fees in order to have a massive credit line, especially if I'm a high income earner.So, I'm a fan of that.Valley Credit Union.And then my number three, I'm really uh comfortable potentially foregoing some intra rates to have a fixed prime rate, especially if rates continue to go down and I sort of lock myself in for 5 years.
That's pretty attractive.So, Southland might be my third pick if I were to live in the state of California.Again, this all depends on if the bank covers where you specifically live.So, be sure to do your research to make that decision.
The speaker shows what several bank websites look like and explains how different LTV tiers affect pricing. He uses these examples to clarify why certain offers are more attractive than others.
With that being said, let me share with you some honorable mentions of all the banks I found.Found a ton.Okay?And then I'm just going to show you what the websites look like so you don't make any, you know, errors.So this was Southland Credit Union.They have a option A and option B.Heliloc.The option A we see how okay 5year fixed rate 6.75%prime.option B.The only difference as you will see is the LTV, right?The moment the LTV goes up, so it says 70.01% to 80%.Look what they did.They tacked on a prime plus 0.25.So now you're going to have a 7% fixed rate and then you'll be at a let's see they yeah everything stays the same you just have a higher interest rate if you go with a higher LTV option Iwould advise guide you if you're going to go with this bank do option A especially if you don't need all that equity just depends on your situation
this bank what is this bank let me see real quick yeah so Credit Union of Southern California.That's what this bank looks like.We'll go to the main site so you can see what it looks like and not get confused.This is Valley First.As you can see, they're the one that goes up to 1.5 million.4.99 first 12 months.Not bad at all.Financial Partners Credit Union, the 4.99 for 6 months.Not bad.Commonwealth,
no intro, but just prime.A little bit cheaper to acquire.No thirdparty fees.No closing costs, no annual fees.Basically, no cost to get into this product.That might be a a big value.And they have some sort of cashback rewards program as well, which is also really interesting.Quite quite rare.So, keep that in mind.This is Ventura with their 3.99 intro.and it goes to prime afterwards.Again, stay under 70% LTV.Minute you go up, they add 0.5.You go higher, right?If it's if it's 70% or less, no prime.No prime plus.If it is, it's prime plus.Keep that in mind.And I'm pretty sure it goes higher and higher the the higher you go.
A long list of additional California credit unions and banks is reviewed, with quick notes on their rates, margins, LTVs, and intro offers. The speaker highlights which options are less attractive and points out a few standout alternatives.
Here are the honorable mentions.There's a whole list of them.And again, if the banks on the board that I displayed don't apply to you because you don't live in the area that they cover, then these would be your ne your next next best bets.So, California Coast Credit Union offers a home equity line of credit at prime adjustable.
Pretty straightforward.Not too much information.You know, you call to get more.Here we have California Credit Union.They have a 12 month intro at 5.99, but it does come at a cost at a prime plus 1% or higher afterwards.Keep that in mind.This is California Credit Union.80% LTV 5.99 goes to prime plus a margin 1%.7.75%.So keep that in mind.So it's California Credit Union.A lot of these banks are going to have similar names.Okay, we already covered this bank.Star one is doing prime.Pretty straightforward.Here's another bank.Not attractive in my opinion.SDCCU Credit Union, but I'm just showing you all the banks that I did find.So prime.But look at the margin.As low as margin plus 1.5 1.5 2%.That's that's too high.There's another honorable mention.Key point credit union 12 month intro 6.24 then it jumps 7.25 85% LTV.
So that's prime plus a margin less attractive.Pacific Service Credit Union.All right.Home Equity Line of Credit Prime.Could be higher, could be as low as Prime.Not bad.Another bank, Spectrum Credit Union.I've had some clients go here.Prime 80% LTV, max 350.Orange County Credit Union Prime.
If you go with a fixed rate, your interest rate is going to be higher.I I don't recommend going with a fixed rate in today's current environment in 2026.Unless the fixed rate is below prime, then that's more attractive.Another bank we have here, Monter Credit Union.
So, it's Prime Plus.25%
max 600K, 75% LTV.
Nothing too crazy, not too attractive.Uncle Credit Union Prime 10-year draw 4K max better.Then we have First City Credit Union.
We got Prime Plus.25, but we have a 4.99 intro for 12 months.10-year draw.80% LTV, max 400K, no annual fees, wave settlement fees, no minimum draw amount.So that that is attractive.That does have attraction.Again, if my other banks don't qualify in your area, here's the one bank I found that was below prime.HELOC below prime discounted rate prime minus10.You know, they only do a max of 250k, no annual fees.So, I'm not like jumping up and down.Heritage I found was the lowest intro rate, 2.99 for the first 6 months could be attractive.85% LTV, but the lowest max credit line of only 200K.So, and then if you live in these counties, then it would apply to you.
The speaker wraps up the research, encourages viewers to share better offers in the comments, and explains what would beat his current picks. He closes by inviting viewers to book coaching and support for broader financial strategies beyond the HELOC.
All right.So, that is all my research.You've got all the names there.Now, it is up to you to get yourself in the right home equity line of credit in the second position, the state of California.And again, for those of you clients, soon to be clients, loyal followers, new subscribers, you live in the state of California, and you begin to do research based off my parameters, and you find a better bank, whether it's5 years from now after this video's been posted, plea, do please do us all a favor.Comment below the name of the bank.Don't put the link cuz it's just going to flag it automatically.Just put the name of the bank and what the offer is.Again, if it beats any of my offers here, the way to beat me is have a prime minus rate plus an intro rate and something competitive with max credit line, no annual fees, no closing costs.
Or if you're just like, hey, this is a bank I've always enjoyed, I've always liked for Helocks, that's cool, too.Put that in the comments below.And with that being said, my name is Denzel Rodriguez, your personal finance geek of the 21st century.If you're looking for coaching, one-on-one accountability, support to help you through this entire process, not just getting the HELOC, but implementing the strategies that we can stack on top of it, like promo stacking, like infinite banking, cash flowhacking, you know, credit card stacking.There's different things that we can add whether it's to eliminate or accelerate debt and or invest and create more cash flow and income and ultimately obtain financial freedom in your life.All right, so click the links below, book a call, book a consultation.That's the best way to build that relationship with me.And if we're on the same page and if we're a good fit, then we can go the distance.
Right?When I mean go the distance, I mean all the way to financial freedom and even beyond that into philanthropy, into giving, into expansion.Have a wonderful day.God bless and talk soon.