If you're planning a costly home improvement project, consider looking into home equity loans in California. This loan acts like a second mortgage and the payment plan is set up similarly. You get your money in one lump sum and you can spend it however you like. You simply pay it back in monthly installments over the term period you've selected, which is usually 10 or 15 years.

The upside to this loan is that the interest rate is fixed. The downside is that an appraisal of the home is usually needed and sometimes lenders require you to pay closing costs. Despite this, the best way to finance your project is to get a California home equity mortgage. Here are a few tips to help you get you started.

1. Make your local bank your first stop when getting a California home equity loan. Consider using lenders you've already established a rapport with.

2. Apply online at one of the California home equity lenders. This really speeds up the process.

3. Check out the going California home equity loan rate. This knowledge will assist you in negotiations when applying for your loan.

Action Steps
The best contacts and resources to help you get it done

Find a lender of California home equity loans in your neighborhood

It's very convenient to get your loan from an institution you already bank with. If you've already put your trust in your bank or credit union, you can be sure their loan officers will give you the best service.

I recommend: Union Bank of California offers no closing costs or application fees on their home equity loans. Call your local Westamerica Bank branch to find out about the home equity options they offer; there are 86 branches throughout Northern and Central California.

Apply online for a CA home equity loan

Many lenders offer online applications to simplify the process. If you're short on time, fill out your information online and submit it to the bank for approval.

I recommend: Fill out the online application for a loan from JPMorgan Chase Bank. You can also apply online at Bank of America.

Determine the usual California home equity loan rates

In order to know if you're getting a good rate, you should look at a few banks' websites to find out what their lowest rates are so you can negotiate the rate you're offered.

I recommend: Find out the rates of various California lenders at Mortgage101. Fill out a simple form at MortgageLoan.com to find rates for home equity loans in California.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Sometimes it's better to do a California home loan mortgage refinance instead of using a traditional home equity loan. You can do a 'cash out refi' and pull out money for home improvement; you won't have a second mortgage, which can carry a higher rate than your first mortgage.