Financially responsible homeowners can use a home equity line of credit to pay for large unexpected expenses such as education, medical bills and home repairs.

With a HELOC, borrowers can obtain a credit amount from $5,000 to $1,000,000 at an interest rate between 0.99% and 18%. The best overall HELOC lender, Bank of America, offers an introductory APR of 1.99% for six months.

WHAT WE’RE GEEKING OUT ON

Home Equity Line of Credit (HELOC) Rates for 2023

Comparing rates and terms is important to find the best home equity line of credit provider for you. Below, we’ve included an overview of each lender’s home equity line of credit policy, including home equity line of credit rates, loan amount, repayment terms, minimum credit score requirement, etc.

It’s important to note that the information below reflects rates and lender information as of May 2022. Though MoneyGeek regularly updates its pages, this information is subject to change. It’s important that you confirm any rates or HELOC details with your chosen lender.

Lender
APR
Loan Amount
Min. Credit Score Requirement
Repayment Terms
Annual Fees
Pre-Approval Time

PenFed Credit Union

3.75% to 18%

$25,000 to $1,000,000

660

10-year draw period
and 20-year repayment period

None

N/A

PNC Bank

Not specified

Not specified

Not specified

Not specified

Not specified

Not specified

Bank of America

1.99% special
introductory variable
APR for 6 months,
then as low as
4.35% variable

$25,000 to $1,000,000

Not specified

10-year draw period,
20-year repayment period

Not specified

Not specified

U.S. Bank

3.65% to 8.80%

$15,000 to $750,000

730

10-year draw period,
unspecified repayment period

$90

Not specified

Flagstar

Starting at 3.99%

$10,000 to $500,000

Not specified

10-year draw period
and 20-year repayment period

$75

Not specified

SunTrust/Truist

Starting at 4.64%

$10,000 to $500,000

Not specified

10-year draw period
and 20-year repayment period

None

24 hours

Figure

Starting at 3.50%

$15,000 to $400,000

620

5 to 30 years

3% to 4.99%

24 hours

Citizens Bank

Starting at Prime - 0.50%

Starting at $17,500

Not specified

10-year draw period,
15-year repayment period

$50

Not specified

TD Bank

Starting at 3.34%

Starting at $25,000

740

Not specified

$50

Not specified

Connexus Credit Union

3.49% for 6 months
(4.08% thereafter)

Starting at $5,000

Not specified

15-year draw period
with 15-year repayment period

None

24 hours

Regions Bank

3.75% to 10.63% variable

$10,000 to $500,000

Not specified

10-year draw period,
and then 20 years for repayment

None

Not specified

MoneyGeek’s Picks for Best HELOC Lenders in Louisiana

MoneyGeek identified the top home equity line of credit lenders in Louisiana to help borrowers find the best match for their needs and situation.

There are only a few lenders that offer home equity line of credit in Louisiana. Most are national banks, which often have very specific requirements for eligibility. If their application is denied by a national lender, borrowers may want to check to see if a HELOC is available through their local credit union.

Best Overall HELOC Lender in Louisiana: Bank of America


  • Bank of America

    Bank of America customers receive additional discounts on their rates.

    • 6.740% for 6 months, then 9.550%APR Range
    • Not specifiedMinimum Credit Score
    • $25,000 to $1,000,000Loan Amount Range
    • 10-year draw period; 20-year repayment periodRepayment Terms
    • NoneAnnual Fees
    • Not specifiedPre-Approval Time
    Bank of America

    on Bank of America Website

Best HELOC Lender for Good Credit in Louisiana: U.S. Bank


  • U.S. Bank

    U.S. Bank is the best lender for borrowers with good credit scores exceeding 730.

    • 4.20% to 9.35%APR Range
    • 730Minimum Credit Score
    • $15,000 to $750,000Loan Amount Range
    • 10-year draw period; unspecified repayment periodRepayment Terms
    • $90Annual Fees
    • Not specifiedPre-Approval Time
    U.S. Bank

    on U.S. Bank Website

Best HELOC Lender for Bad Credit in Louisiana: Figure


  • Figure

    Figure offers HELOCs to borrowers with poor credit scores at relatively low interest rates.

    • From 6.55% to 15.54%APR Range
    • 620Minimum Credit Score
    • $15,000 to $400,000Loan Amount Range
    • 5 to 30 yearsRepayment Terms
    • NoneAnnual Fees
    • 24 hoursPre-Approval Time
    Figure

    on Figure Website

Best HELOC Lender for Competitive Rates in Louisiana: PenFed


  • PenFed Credit Union

    Best for borrowers who want to lock in competitive rates in advance.

    • 0.99% for 6 months; 4.25% to 18% thereafterAPR Range
    • 660Minimum Credit Score
    • $25,000 to $1,000,000Loan Amount Range
    • 10-year draw period; 20-year repayment periodRepayment Terms
    • $99Annual Fees
    • Not SpecifiedPre-Approval Time
    PenFed Credit Union

    on PenFed Credit Union Website

HELOC vs. Home Equity Loans

When considering different loan products, you may be offered a choice between a home equity line of credit (HELOC) and a home equity loan (HELOAN). Though they sound similar, their terms are very different.

Homeowners can use HELOANs to borrow money against the value of their homes at a fixed interest rate and repayment term. Funds are disbursed as a lump sum.

Alternatively, homeowners can choose a HELOC that puts their home as collateral. Similar to a credit card, borrowers can use a certain amount throughout a draw period, and payments are subject to a variable interest rate.

To learn more about the differences between a HELOC and a HELOAN, you can refer to the table below.

HELOC
Home Equity Loan

Interest Rate

Adjustable interest rate,
but fixed-rate options are available

Fixed interest rate

Monthly Payment

Changes depending on
the amount of money borrowed

Fixed monthly payments

Repayment Terms

During the draw period, borrowers pay
interest on the money they borrowed;
after the draw period, they repay any
principal owed in addition to interest

Repayment starts as soon as
the money is given to the borrower

Fund Disbursements

Line of credit

Lump sum delivery

How to Apply for a HELOC

Understanding how a home equity line of credit (HELOC) works can be overwhelming. To guide borrowers, MoneyGeek answered some commonly asked questions about the home equity line of credit.

1

Determine how much you need

A HELOC is a great option if you already know how much money you need to borrow. Borrowed funds from a HELOC are usually allocated for home renovation and home upgrades, as well as other purposes like repaying a mortgage, paying off credit cards or consolidating debt.

2

Assess your financial standing

Knowing your financial standing can help you assess whether you qualify for a HELOC. Things like your credit score, income and current loan-to-value ratio are worth reviewing before applying for a HELOC.

3

Shop around and compare lenders

Once you have an idea of your eligibility and funding needs, you should compare different lenders available in your state to choose the best option for your needs. While completing research, you can take note of which lenders offer the lowest interest rates.

4

Apply

To expedite the process, you should gather any required documents such as bank statements, mortgage statements and proof of income before you start your application. As mentioned, most lenders allow you to apply completely online.

5

Use funds wisely

Keep in mind that taking out a HELOC could be putting your home at risk. Therefore, you should use the funds wisely. An example of a smart use of HELOC is using the funds for home renovation to increase its value.

Frequently Asked Questions About HELOCs

Understanding how a home equity line of credit works can be challenging for first-time borrowers, so MoneyGeek provided answers to some frequently asked questions below.

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