With a Home Equity Line of Credit (HELOC),* you can use the equity in your home to buy the things you need at a low, secured rate. Once the line of credit is established, you can borrow as much as you need within the limit at any time during the term.* It’s a great option for ongoing or unexpected expenses, and applying is easy.
- Low, variable interest rates
- Multiple payment options
- No pre-payment penalty
- No closing costs*
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Read MoreFrequently Asked Questions
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How do I apply for a HELOC?
You can apply for a HELOC online, by phone, or in a La Cap branch.
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Are there restrictions on eligible properties?
Yes. HELOCs are available for properties that are:
- located in the state of Louisiana,
- owned by the applicant (In whole or in part),
- the applicant’s primary residence, and
- insured with homeowners coverage and flood insurance coverage (If it is in a designated flood zone according to the FEMA flood maps).
Also, all vested owners of the property will need to sign at the loan closing.
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Can a HELOC be on a rental property I own?
The member must reside in the property. It can be Single Family, 1-4 detached Single Family residence, Attached Single Family, Condo, Townhouse, or Co-Op.
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Can I do a HELOC on my home in Texas?
No. We only do HELOCs in Louisiana.
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What are the limitations on HELOC amounts?
The minimum loan amount on the HELOC is $10,000 and the maximum loan amount is $250,000.
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Is an appraisal required?
An appraisal will be required if no AVM (Automated Valuation Model) is available or there are extenuating circumstances related to the property (i.e., necessary repairs, etc.). If an appraisal is needed, you will pay a $575 appraisal fee upfront. Outside appraisals are not accepted.
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Is debt protection available for HELOCs?
The HELOC can be protected in case of a medical emergency. Debt protection is available for this product, and there are many available options.
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What is the draw period?
The HELOC has a five-year draw period with a repayment term of up to 10 years.
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What are the limitations on HELOC advances?
Advances are limited to six draws per quarter year and are required to be a minimum of $1,000 per draw.
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When is my payment due?
The HELOC payment is due on the last day of each month.
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How do I make payments on my HELOC?
The payments can be made in person, by mail, by automatic transfer, by payroll deduction, with online banking, with via Tel-A-Cap.
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Can I have HELOCs on multiple properties?
No. Only one HELOC is available per member/community.
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How is the minimum payment calculated?
1.50% of the outstanding balance (minimum $50.00).
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Can the interest rate be locked in?
No. The rate is variable and can't be locked. (Rate and margin are based on credit history.) If the rate adjusts, it does affect the entire balance in use.
Ex: Current prime is 3.50% + Margin of 2.00%= 5.50% interest rate. The prime can go up or down, but the interest rate will always be 2.00% higher than prime.
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Is there an annual fee?
The annual fee is waived the first year. A $60 Annual Fee will be assessed to the equity line on each anniversary date.
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What insurance is required?
Proof of homeowners insurance is required. Proof of flood insurance is required, if applicable. No escrow is required.
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Will there be a lien placed on my home?
Your home will be used as collateral to secure the Home Equity Line of Credit.
Disclosures
*HELOC interest rates are variable, based on an index plus a margin and may vary after the account is open. The index is PRIME as published in the Wall Street Journal. When a range of rates has been published the highest rate will be used. We will use the most recent index value available to use as of 30 days before the date of any annual percentage adjustment. The annual percentage rate can change on the first day of each month. There is no limit on the amount by which the annual percentage rate can change during any one year period. The APR range is 7.75% to 13.50%. The rate is subject to adjust monthly. The margin will be based on your credit score, debt ratio, and loan to value – see lender for additional details. There is an annual fee in the amount of $60 which is waived the 1st year. The minimum loan amount is $10,000 with a required initial draw of $1,000. Twenty-four draws (6 per quarter) are allowed annually, with a 5 year draw period and a 10 year payback equaling a 15 year term. Monthly payments are 1.50% of the principal balance during the draw period and amortized to payoff in 10 years when the 5 year draw period is over. Property insurance with La Cap listed as lien holder is required, as is flood insurance if applicable. Loan to value allowed up to 80%. Higher loan to value will be determined on an exception basis. Closing cost will be $0.00 to $900. Closing cost does not include full appraisal fee if appraisal is required. La Cap will pay the closing costs; however, these costs will be charged back to the borrower(s) if the HELOC is closed within twenty-four (24) months of origination. Other restrictions may apply.