Updated: November 16, 2024
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The best home equity line of credit (HELOC) lender in Louisiana is Keesler Federal Credit Union with a MoneyGeek score of 97 out of 100, followed by Consumers Credit Union with a MoneyGeek score of 95 out of 100.
The average HELOC limit in Louisiana is $104,758. How much you can borrow often depends on your home's equity, outstanding mortgage balance, and credit score.
Comparing rates can help find lenders suited to your needs. MoneyGeek compiled the best HELOC rates in Louisiana, updated weekly to assist you.
The average HELOC balance in Louisiana for the third quarter of 2023 is $42,019, according to Experian. Understanding your HELOC payments is essential for managing this type of debt effectively.
Use our HELOC payment calculator to estimate your monthly payments based on the amount drawn, APR and loan terms. The full amortization schedule provided shows how much of your payments go toward interest and principal over time.
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.
Draw Period Payment
Repayment Period Payment
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HELOCs are popular in Louisiana because they provide flexibility and control over borrowing amounts and repayment timelines. These features make them an appealing option for those looking to manage their finances effectively.
Here's a list of where you can use a HELOC.
Home Improvements or Renovations
A HELOC is ideal for home improvements, offering flexibility as costs evolve. It allows you to fund projects without finalizing costs upfront, making it a smart choice for dynamic renovation needs.
Consolidating High-Interest Debt
With average 2023 consumer debt in Louisiana at $80,616, using a HELOC for debt consolidation can lower interest rates and simplify payments.
Funding Education Expenses
A HELOC is a cost-effective option for education expenses, covering tuition, books, and fees. It offers lower interest rates compared to other debts, making it a smart choice for funding educational pursuits.
Investment Properties
Using a HELOC for investment properties can enhance your portfolio. Shop around for the best HELOC lenders for investment property to secure favorable terms and rates, maximizing your investment potential.
Understanding the steps to apply for a HELOC in Louisiana is key to making informed decisions about leveraging your home equity. We have broken down this journey into six steps below.
Reviewing your financial health is essential before applying for a HELOC. This includes checking your credit score, debt-to-income ratio, and home equity. In Louisiana, the average credit score is 690 in the third quarter of 2023 based on Experian data. A higher score can improve your chances of approval.
Comparing rates in Louisiana can help you secure the best HELOC deal. Look into lender features such as repayment terms, fees, and the option for a fixed-rate HELOC. These factors can significantly impact your overall loan experience and costs.
Preparing the necessary documents in advance can streamline your HELOC application. Commonly required documents include proof of income, recent tax returns, and information on your mortgage and home value. Having these ready can make the process smoother and faster.
Most lenders offer the convenience of applying online, but you can also apply in-person if a branch is available. Ensure all information is accurate and complete to avoid delays. Double-check for errors or omissions before submission.
Some lenders may require a home appraisal to assess your home's current market value. A home appraisal involves a professional evaluation of your property's worth, which helps determine the amount you can borrow.
The approval process for a HELOC can take two to six weeks. Once approved, you'll proceed to closing, which involves signing documents and potentially paying closing costs. Some lenders may offer to cover part of these costs.
The average HELOC limit in Louisiana is $104,758, according to Experian's data for the third quarter of 2023. The maximum amount you can borrow through a HELOC is typically tied to the equity you have in your home. The more equity you have, the higher your potential credit limit can be.
Check out the table below to see the range of credit lines offered by Louisiana lenders in our database. This will give you a better idea of what options might be available to you based on your specific financial situation.
| Chevron Federal Credit Union | Up to $350,000 |
| Keesler Federal Credit Union | $10,000 to $250,000 |
| Regions Bank | $10,000 to $500,000 |
When choosing a lender for a HELOC, a local bank or credit union may not charge you as many fees as an online lender or mortgage broker (if they charge you any fees at all). Usually you just need to pay for the appraisal fee, which can be anywhere from $150 to $500. Although an online lender may advertise a better rate, if it’s charging thousands of dollars in fees, it may not be the best financial decision to take the perceived lower rate.
Keesler Federal Credit Union is the best HELOC lender in Louisiana with a MoneyGeek score of 97 out of 100. It excels in customer service and education, offers competitive interest rates, and is credible and transparent about its HELOC terms and process.
A bad credit score is generally below 580 for FICO scores and between 300 and 600 for VantageScore. When looking for the best HELOC lenders for bad credit, consider factors such as interest rates, fees, and the lender's willingness to work with low credit scores.
Consider factors like interest rates, fees, borrowing limits, repayment terms, and lender reputation when choosing a HELOC lender in Louisiana.
Common fees associated with HELOCs include origination fees, annual fees, application fees, and early closure fees.
The typical draw period for HELOCs is 10 years, but some lenders may offer more flexible options.
Look for lenders that offer fixed-rate HELOC options or allow interest-only payments during the draw period for more flexible repayment options.
MoneyGeek's scoring system offers a comprehensive overview of how each lender performed in areas that matter most to borrowers. Scores were allocated based on the inclusion or exclusion of certain desirable features in various critical categories.
Our analysis was completed in November 2024 and considered different banks and credit unions in California from S&P Global's SNL Depository Rates dataset.
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.
