FAQs: General Home Loans FAQs

Baton Rouge Telco offers real estate loan options for homes and properties located in the state of Louisiana. Membership restrictions apply.

• Rate = Prime Rate + a margin (based on the member’s credit score and loan to value)
• Rate can adjust quarterly (January, April, July and October)

Home equity lines of credit have a minimum loan amount of $10,000 and you may borrow up to 90% of the combined value of your home.

Home equity lines of credit payments are due on the 1st of the month. Minimum payments are due each month where there is an active balance.

Home equity lines of credit are open for 10 years. Your minimum monthly payment will be $100 or 1.5% of the principal balance drawn, whichever is greater.

Mortgage refinances generally take less than 4 weeks to close after approval.

Baton Rouge Telco’s only in-house fees are the $50 application fee and an origination fee of 1% of the total loan amount at closing not to exceed $4,000.  The origination fee can be waived with .25% added to your qualifying interest rate.

The amount of cash that is needed depends on a number of items. Generally speaking, you will need to supply earnest money, a down payment, and closing costs. Earnest money is a deposit that is supplied when you make an offer on the house. The down payment is a percentage of the cost of the home that is due at settlement. Closing costs are costs associated with processing paperwork to purchase or refinance a house. Sometimes you can negotiate that the seller will pay this for you or give you a credit.

Your mortgage payment is made up of three components: principal, interest, and taxes and insurance. Principal is repayment on the amount borrowed. Interest is payment to the lender for the amount borrowed. Taxes and insurance are monthly payments that are normally made into a special escrow account for items like hazard insurance and property taxes. This feature is sometimes optional, in which case the fees will be paid by you directly to the Parish Tax Assessor and property insurance company.

Generally speaking, you can purchase a home with a value of two or three times your annual household income. However, the amount you can borrow will also depend on your employment history, credit history, current savings and debts, and the amount of down payment you are willing to make. You may also be able to take advantage of special loan programs for first-time buyers to purchase a home at a higher value. We can help guide you!

Baton Rouge Telco offers real estate loans for new home purchases, land purchases, 1st and 2nd mortgage refinancing with cash-out options, and home equity lines of credit (HELOC). We do not offer loans for mobile homes, condominiums (townhomes are acceptable), or investment properties.

All mortgage payments are due on the 1st of the month and are considered late after the 15th of the month.

You can pay online, by phone (fee may apply), by mail or at your nearest branch location. You can also set up a recurring automatic withdrawal payment option.