Put Your Home to Work for You
Imagine what you could do with a La Cap HELOC. 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. Borrow as much as you need within the limit at any time during the term.*
- Introductory rate as low as 3.99% APR* for 6 months
- Low, variable non-introductory interest rates of 7.25% to 13.00% APR*
- Loan amount from $10,000 to $250,000
- Up to 80% of property value
- Flexible payment options, 5-year draw period with a 10-year repayment period
- No pre-payment penalty
- Get up to $1,500 in closing costs*
- No annual fee
Ready to apply? Make sure you have your driver's license ready.
HELOC FAQs
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What are the HELOC eligibility requirements?
HELOC eligibility is as follows:
- Located in the state of Louisiana.
- Applicant’s primary residence (Single Family, 1-4 detached Single Family residence, Attached Single Family.).
- Owned by the applicant (In whole or in part). All vested owners of the property will need to sign at loan closing.
The following are NOT ELIGIBLE for HELOCs:
- Not eligible outside of the state of Louisiana.
- Not eligible for rental properties.
- Not eligible for multiple properties. One HELOC per member/community.
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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: If prime is 7.50% + Margin of 2.00%= 9.50% 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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How is the minimum payment calculated? When is it due? How do I make payments?
- 1.50% of the outstanding balance (minimum $50.00).
- The HELOC payment is due on the last day of each month.
- The payments can be made in person, by mail, by automatic transfer, by payroll deduction, within online banking, or via Tel-A-Cap. Visit the Payment Center to see the available options for making your payment.
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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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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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What insurance is required?
The following are required:
- Proof of homeowners' insurance is required
- Proof of flood insurance is required if it is in a designated flood zone according to the FEMA flood maps.
- No escrow is required.
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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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Are HELOC loans tax deductable?
Interest paid on HELOCs may be tax-deductible if the funds are used for qualified home improvements or remodeling. However, funds used for personal expenses, such as paying off credit card debt, purchasing a car, or covering education costs, are not eligible for deduction. Please consult a tax professional to determine eligibility.
Managing Your HELOC: FAQs
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How can I access my HELOC funds?
You can access your HELOC funds through online banking transfers, checks linked to your HELOC account, or in person at a branch location.
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Is there a minimum or maximum amount I can transfer or access at one time?
No. You may make a withdrawal for any amount up to your available limit within the initial 5-year draw period.
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Is there a maximum number of withdrawals that I can make?
Yes. You may withdraw funds from your available limit up to six times per calendar quarter within the initial 5-year draw period.
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Can my limit be increased?
Yes. If you need additional funds, you may request an increase to your HELOC limit. Contact La Cap’s Real Estate Team at 800.522.2748 Toll Free or 225.342.5055, option 1. If you request an increase within the first 24 months after opening your HELOC, you may save on additional closing costs.
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What can I use my HELOC for?
A HELOC can be used for a variety of purposes, including home improvements, debt consolidation, major purchases, or unexpected expenses.
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What is the minimum payment on a HELOC?
The minimum monthly payment is 1.5% of the outstanding balance or $50, whichever is greater.
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When is my HELOC payment due?
HELOC payments are due on the last day of each month.
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How are HELOC payments applied?
Payments are applied to both interest and principal.
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Can my rate change?
Yes. HELOC interest rates are variable and may fluctuate with market conditions. The rate is tied to an index plus a margin. The index is the Prime Rate as published in the Wall Street Journal. The Prime Rate may go up or down, but the margin remains the same as stated in your HELOC loan documents.
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What happens after the draw period ends?
After the initial 5-year draw period ends, the HELOC enters the repayment period. During the repayment period, no additional funds can be borrowed. The remaining balance is repaid according to the original loan terms. The repayment period is 10 years.
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Does using my HELOC affect my credit?
Yes. Your HELOC is reported to the credit bureaus, and your payment history and balances may impact your credit score.
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Disclosures
* APR = Annual Percentage Rate. HELOC interest rates are variable, based on an index plus a margin. The index is PRIME as published in the Wall Street Journal. The introductory rate is as low as 3.99% APR and is effective for 6 months (180 days) from the consummation date. The non-introductory APR range is 7.25% to 13.00% as of Effective date: 10/01/26. The minimum loan amount is $10,000. La Capitol FCU will pay up to $1,500 of closing cost. 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. Equal housing lender. NMLS # 411413. Effective date: 10/01/26