HELOC rates in Louisiana rose from 4.3% in 2021 to 8.6% by November 2024. If this trend persists, borrowing costs may increase further. Homeowners considering a HELOC might benefit from securing a rate now.
HELOC
Best HELOC Rates in Louisiana (December 2024)
Updated: December 3, 2024
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Key Takeaways
Higher loan-to-value (LTV) ratios lead to higher rates. The average APR for a HELOC in Louisiana with an 80% LTV is 8.3%, compared with 8.4% for a 90% LTV.
HELOC rates vary by city in Louisiana. Jackson has an average APR of 7.8%, whereas Walker's is 10.8%.
Different lenders offer varying rates for the same loan types. First National Bank in DeRidder's average APR is 5.5%, whereas Breco Federal Credit Union's is 12.0%.
Current HELOC Rates in Louisiana
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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
| 8.3% | 8.4% |
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
| $100,000 | 8.4% |
| $50,000 | 8.4% |
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 DeRidder | 5.5% |
| Jefferson Parish Employees Federal Credit Union | 6.5% |
| Post Office Employee Federal Credit Union | 6.8% |
| Consumers Credit Union | 7.3% |
| Advancial Federal Credit Union | 7.5% |
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
| Resource Bank | Commercial Bank | 7.8% |
| Red River Bank | Commercial Bank | 7.8% |
| Pelican State Credit Union | Credit Union | 7.8% |
| Home Bank | Commercial Bank | 7.9% |
| Gulf Coast Bank and Trust Company | Commercial Bank | 8.0% |
| Keesler Federal Credit Union | Credit Union | 8.0% |
| New Orleans Firemens Federal Credit Union | Credit Union | 8.0% |
| Campus Federal Credit Union | Credit Union | 8.1% |
| OnPath Federal Credit Union | Credit Union | 8.3% |
| Jefferson Financial Federal Credit Union | Credit Union | 8.4% |
| Regions Bank | Commercial Bank | 8.5% |
| First Horizon Bank | Commercial Bank | 8.5% |
| Navy Federal Credit Union | Credit Union | 9.1% |
| Hancock Whitney Bank | Commercial Bank | 10.1% |
COMPARING HELOC RATES IN LOUISIANA: BANKS VS. CREDIT UNIONS
HELOC rates in Louisiana vary between banks and credit unions, with both currently offering an average APR of 8.3%. While commercial banks often have higher rates due to overhead costs, in this instance, their rates align with those of credit unions, which are not-for-profit institutions typically known for offering lower rates.
When deciding between the two, consider more than just rates. Banks may provide greater convenience and a wider range of services, while credit unions often excel in customer service and have lower fees. It's also important to check for membership requirements at credit unions and any hidden fees or rate adjustment clauses with both lenders.
Expert Answers About HELOCs
What are the primary factors that influence HELOC rates, and how can homeowners ensure they get the best rate?
Credit & Mortgage Expert
There are many factors that influence HELOC rates, but the most critical are the following:
Credit score is a crucial factor in determining your interest rate for a HELOC. The higher your credit score, the lower rate you will qualify for. Shoot for a 760 credit score or higher.
Debt-to-income is a vital factor. If the lender doesn’t think you have the ability to repay the debt, you will be denied. Focus on paying off as many credit cards or loans as possible before applying for a HELOC.
Loan-to-value — how much money you borrow based on how much your home is worth plays a large role in interest rate. The more you take out, the higher the risk is for the lender, which translates to a higher interest rate for your loan.
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.
Credit Line Information
Draw Period Payment
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Repayment Period Payment
$0
- Graph view
- Table view
- Amortization
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:
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.
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.
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.
Increase your home equity
More equity reduces lender risk, leading to lower rates. Consider paying down your mortgage or making home improvements.
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 at 8.3%, slightly higher than the 7.9% for home equity loans. This difference arises because HELOCs typically have variable rates, while home equity loans offer fixed rates.
- HELOCs are revolving credit lines with variable interest rates that can change with the market. In rising interest rate environments, this could lead to increased costs for homeowners over time.
- In contrast, home equity loans provide a lump sum at a fixed rate, making them preferable for those who need stable, predictable payments.
When deciding between these options, consider whether you prioritize the flexibility of accessing funds as needed or the stability of fixed monthly payments. Evaluate your financial situation and how changes in rates could impact your ability to manage payments against your home's equity.
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?
Louisiana's HELOC rates are 8.3%, slightly below the national average of 8.4%.
What fees are commonly associated with HELOCs in Louisiana?
Common fees include application, appraisal, annual, and early closure fees, but specifics vary by lender.
How do HELOC rates in Louisiana compare to home equity loan rates?
HELOC rates in Louisiana average 8.3%, while home equity loan rates are lower at 7.9%, which can be beneficial for those with bad credit.
How do HELOC Rates in Louisiana vary between banks and credit unions?
Both banks and credit unions offer lower rates at an average of 8.3% in Louisiana.
What's the best HELOC rate in New Orleans? How does it compare to the current HELOC rate in Louisiana?
New Orleans's rates average 8.4%, slightly higher than the state average of 8.3%.
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.
This data is accurate as of October 29, 2024.
58Lenders Analyzed
About Zachary Romeo, CBCA
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.