Best HELOC Rates in Louisiana

Key Takeaways

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Higher loan-to-value (LTV) ratios lead to higher rates. The average APR for a HELOC in Louisiana with an 80% LTV is 8.6%, compared with 8.7% for a 90% LTV.

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HELOC rates vary by city in Louisiana. Jackson has an average APR of 7.8%, whereas Walker's is 10.9%.

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Different lenders offer varying rates for the same loan types. First National Bank in DeRidder's average APR is 5.5%, whereas Bossier Federal Credit Union's is 12.5%.

Current HELOC Rates in Louisiana

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HELOC rates in Louisiana rose from 4.3% in 2021 to 8.6% by October 2024. If this trend persists, borrowing costs may increase further. Homeowners considering a HELOC might benefit from securing a rate now.

HELOC Rates in Louisiana by LTV Ratio

HELOC rates in Louisiana can vary based on your loan-to-value ratio and line limit. Lenders view a lower LTV as less risky, so with an 80% LTV, you borrow less against your home's value than with a 90% LTV, reducing the risk of default on your HELOC.

The table below allows you to filter between different loan amounts, providing a clearer picture of what you may qualify for.

Data filtered by:Results filtered by:
Line Limit:
Line Limit:$100,000
8.6%8.7%

HELOC Rates in Louisiana by City

HELOC rates in Louisiana vary by city due to local housing markets and lender competition. For example, cities with strong real estate markets might offer lower rates, reducing lender risk.

Use the table below to filter by your city and see average APRs for $50K and $100K HELOCs.

Data filtered by:Results filtered by:
City:
City:New Orleans
$100,0008.7%
$50,0008.7%

HELOC Rates in Louisiana by Lender

HELOC interest rates in Louisiana differ among lenders based on pricing strategies and risk assessments. The table below highlights the five lenders in Louisiana offering the lowest average APRs, helping you compare competitive rates.

First National Bank in DeRidder5.5%
Jefferson Parish Employees Federal Credit Union7.0%
Post Office Employee Federal Credit Union7.5%
Advancial Federal Credit Union7.5%
Pelican State Credit Union7.8%

HELOC rates today can differ significantly among lenders in the same city. Use the table below to filter data by city, allowing you to compare APRs and identify the best rate available in your area.

Data filtered by:Results filtered by:
City:
City:New Orleans
Pelican State Credit UnionCredit Union7.8%
Resource BankCommercial Bank8.0%
Keesler Federal Credit UnionCredit Union8.0%
Jefferson Financial Federal Credit UnionCredit Union8.4%
First Horizon BankCommercial Bank8.5%
Gulf Coast Bank and Trust CompanyCommercial Bank8.5%
Home BankCommercial Bank8.5%
Red River BankCommercial Bank8.5%
Regions BankCommercial Bank8.5%
New Orleans Firemens Federal Credit UnionCredit Union8.6%
Campus Federal Credit UnionCredit Union8.9%
OnPath Federal Credit UnionCredit Union9.0%
Navy Federal Credit UnionCredit Union9.6%
Hancock Whitney BankCommercial Bank10.1%
COMPARING HELOC RATES IN LOUISIANA: BANKS VS. CREDIT UNIONS

HELOC rates in Louisiana vary between banks and credit unions. Commercial banks offer an average rate of 8.5%, which is slightly lower than the 8.7% average rate offered by credit unions. Credit unions are not-for-profit institutions that often provide community-focused services and benefits.

When choosing between the two, consider more than just rates. Banks might offer more convenience, while credit unions often excel in customer service and lower fees. Be sure to check membership requirements for credit unions and any hidden fees or rate adjustment clauses with both lenders.

Expert Answers About HELOCs

Are there any strategies homeowners can use to lock in a favorable HELOC rate in a rising interest rate environment, and how does a rate lock typically work with HELOCs?

Credit & Mortgage Expert

HELOCS often have variable interest rates, meaning they go up or down with the Federal Funds rate. So if you are worried about rates rising, you should look into a home equity loan or refinancing your home. That way you have a fixed rate that will not change over time.

HELOC Payment Calculator

HELOCs have become a popular tool for homeowners across the U.S. looking to tap into their home's equity. Our Louisiana HELOC payment calculator estimates your monthly payments based on your credit line draws, loan terms and APR. It also provides an amortization schedule, detailing how payments divide between principal and interest over time. Using this tool can help you manage your HELOC and improve your financial planning.

Louisiana HELOC Payoff Calculator

This HELOC payment calculator assumes that you take out one lump sum at the start of your interest-only period. Your actual payoff schedule will vary depending on your interest rate and market conditions.

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Repayment Period Payment

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Credit Payoff Schedule for Home Equity Line

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How to Get the Best HELOC Rates in Louisiana

Finding the best HELOC rates in Louisiana can save you thousands over your loan's life. For example, a 1% rate reduction on a $100,000 HELOC can save you $1,000 annually. To secure competitive rates, consider these five strategies:

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    Maintain a strong credit score

    The average credit score in Louisiana is 690. Improving it can help secure better rates by making you a more attractive borrower.

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    Compare offers from multiple lenders

    Shopping around can uncover competitive rates and provide leverage to negotiate better terms, avoiding costly mistakes from accepting the first offer.

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    Reduce your debt-to-income (DTI) ratio

    Lower debt-to-income (DTI) ratios indicate financial stability. Paying off credit card debt can improve your DTI, making you eligible for better rates.

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    Increase your home equity

    More equity reduces lender risk, leading to lower rates. Consider paying down your mortgage or making home improvements.

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    Review closing costs and rate caps

    Some lenders charge closing costs. Knowing rate caps helps manage expenses as rates adjust over time.

HELOC Loan Rates vs. Home Equity Loan Rates in Louisiana

HELOC interest rates in Louisiana average 8.6%, compared to 8.1% for home equity loans. This difference is due to HELOCs having variable rates, while home equity loans offer fixed rates.

  • HELOCs are revolving credit lines with variable interest rates, which can increase in rising interest rate environments, potentially affecting long-term finances.
  • Home equity loans provide a lump sum at a fixed rate, offering predictability and stability, making them suitable for those who prefer consistent payments.

When deciding between the two, consider whether you need the flexibility of a HELOC or the predictability of a home equity loan. Evaluate your financial goals and how each option aligns with them, considering how changes in your home's equity can impact your decision.

CONSIDERING A HELOC ALTERNATIVE? TRY A CASH-OUT REFINANCE

A cash-out refinance is a HELOC alternative that replaces your primary mortgage with a larger loan, providing cash access. Unlike HELOCs or home equity loans, it creates a new primary mortgage.

For a Federal Housing Administration (FHA) loan, if your home is valued at $300K with a $150K mortgage balance, an FHA cash-out refinance of $200K gives $50K in cash, with new payments based on $200K.

FAQ: Best HELOC Rates in Louisiana

What are the current HELOC rates in Louisiana and how do they compare to national rates?
What fees are commonly associated with HELOCs in Louisiana?
How do HELOC rates in Louisiana compare to home equity loan rates?
How do HELOC Rates in Louisiana vary between banks and credit unions?
What's the best HELOC rate in New Orleans? How does it compare to the current HELOC rate in Louisiana?

MoneyGeek examined 58 different banks and credit unions in Louisiana using S&P Global's SNL Depository Rates dataset to stay current on the latest home equity line of credit rates.

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This data is accurate as of October 16, 2024.

58Lenders Analyzed

About Zachary Romeo, CBCA


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Zachary Romeo is a certified Commercial Banking and Credit Analyst (CBCA), and the Head of Loans and Banking at MoneyGeek. Previously, he led production teams for some of the largest online informational resources in higher education, with over 13 years of experience in editorial production.

Romeo has a bachelor's degree in biological engineering from Cornell University. He geeks out on minimizing personal debt and helping others do the same through people-first content.