Equity Home Loans

What is the legal limit of interest that can be charged on a home equity loan in the state of California?

Public Comments

1. To the best of my knowledge, there is no limit. However, thanks to competition, anyone charging anything too unreasonable would quickly be out of business. That and some laws against loan sharking I believe. The interest of the loan is usually decided by several factors: size of the loan, credit score and current interest rates set forth by the Fed.
2. I think the most interest anyone can charge is 25%. Whether it's for a car loan or a mortgage loan. This is regulated by the Federal Govt.
3. Home equity loans (HELOC's) have cap rates at prime + 8% usually. At least that's in the state of California. In order to know for sure refer to the "note" that you where given within your closing docuements. Again, usually the rate can increase as high as prime plus 8% (16.25% in todays market)
4. The answer above is correct for HELOCS. For fixed rates it is about 12.5%