Best HELOC Rates and Lenders in Louisiana for 2024
Updated: December 28, 2023
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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.
Home Equity Line of Credit (HELOC) Rates for 2024
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.
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
Best HELOC Lender for Good Credit in Louisiana: U.S. Bank
Best HELOC Lender for Bad Credit in Louisiana: Figure
Best HELOC Lender for Competitive Rates in Louisiana: PenFed
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.
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.
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.
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.
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.
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.
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.
In Louisiana, Bank of America and PenFed offer introductory APRs of 1.99% and 0.99%, respectively, for the first six billing cycles. The rate you receive, however, will depend on your credit score and loan-to-value ratio.
You can use borrowed money from a HELOC for a variety of reasons. Most borrowers use a HELOC for home upgrades and renovations, credit card repayment, debt consolidation, funding for college, etc.
According to the IRS, HELOCs are tax-deductible when you “buy, build or substantially improve” your house. You may want to consult with your lender regarding tax deductions on your HELOC.
In Louisiana, you can secure a line from $5,000 to $1,000,000 depending on the lender. How much money you will be approved for, however, depends on your credit profile.
Both HELOCs and HELOANs can provide you with necessary funding, but the right one for you will depend on your specific needs. A HELOC works like a credit card wherein it provides you access to cash for financial emergencies. A HELOAN is a better choice if you need the money as a lump sum for a larger financial need.
HELOCs usually come in variable interest rates. However, some lenders may be able to convert part or the entire loan to a fixed rate.
sources
- Bank of America. "Home Equity Line of Credit." Accessed June 7, 2022.
- U.S. Bank. "Home Equity Line of Credit." Accessed June 7, 2022.
- Figure. "Home Equity Line of Credit." Accessed June 13, 2022.
- PenFed. "Home Equity Line of Credit." Accessed June 7, 2022.
- Internal Revenue Service. "Publication 936 (2021), Home Mortgage Interest Deduction." Accessed June 7, 2022.