Louisiana Mortgage Calculator
Use our Lousiana Mortgage Calculator to help establish your budget and get an idea of your mortgage payment.
Mortgage Calculator For Louisiana
Louisiana Home and Mortgage Stats
The current average median home price in Louisiana is $242,900, which reflects a decrease of 1.4% from the previous year. The housing market in Louisiana is experiencing a tight inventory, which is expected to cause median sale prices to increase in the near future. As of the latest data, the median days on the market for homes in Louisiana was 52 days, indicating an increase of 20 days year-over-year. This suggests a relatively quick turnaround for homes being listed for sale, although it has slowed down compared to the previous year
Factors That Can Affect Your Louisiana Mortgage Calculations
Just like the subtle spices in your gumbo can make a big difference, certain factors can significantly affect your mortgage calculations in Louisiana. Understanding these factors can help you navigate the banks of the Muddy Mississippi of home mortgages. Let’s break them down:
Loan Amount: This is the total amount you are borrowing from your lender. It’s typically the cost of the home minus your down payment. Greater the loan amount, higher the mortgage payments.
Loan Term: This is the total time you have to repay the loan. Longer terms, like 30 years, lower the monthly payments, but you’ll pay more interest over the life of the loan.
Interest Rate: This is the percentage of the loan amount you’ll pay to borrow the money. A lower interest rate can significantly decrease your monthly payments.
Down Payment: This is the amount of money you initially pay towards the home’s price. Increasing down payments reduce the loan amount, and consequently, the mortgage payments.
Home Insurance: This yearly cost is often bundled with your monthly mortgage payment and is influenced by your home’s value, location, and your claims history.
Property Taxes: Louisiana parishes, like other counties across the U.S., charge property taxes. These are typically included in your monthly mortgage payment.
Mortgage Insurance: If your down payment is less than 20%, you’ll usually need to pay for mortgage insurance, which protects lenders if you default.
Credit Score: Your credit score also plays a critical role in your mortgage interest rate. Lenders may offer lower interest rates to borrowers with high credit scores.
Keep these factors in mind while planning your mortgage, and you’ll be cooking up the perfect plan quicker than you can say jambalaya!
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Average Louisiana Property Taxes Per Parish
Other Louisiana Costs That Can Affect Louisiana Mortgage Calculations
Navigating through the Bayou State’s mortgage costs can get complicated. But don’t fret! Let’s make this as easy as a delightful swing dance session in New Orleans with these crucial factors that you need to consider:
Closing Costs:
Buyers could encounter closing costs ranging from 3.136% to 3.41% of the final home sale price in Louisiana. For homes that sell between $100,000 to $200,000, expect to pay $1,703.50 to $6,814. On average, Louisiana homeowners are looking at approximately $3,407 after taxes for closing costs.
Homeowner’s Insurance:
With drastic weather changes in the state, it’s no surprise that Louisiana’s homeowner’s insurance premiums are some of the highest in the country, averaging $1,847 per year. While your policy covers theft, fire, and storms, damage caused by hurricanes might require additional coverage. Be sure to thoroughly check your insurance policy for the specific protections it provides.
Flood Insurance:
If your home is situated near the Gulf of Mexico, you should consider flood insurance due to the area’s risk of flooding. Policies can be purchased through the National Flood Insurance Program (NFIP).
Home Insurance:
The actual cost of your home insurance in Louisiana will vary based on factors like the structure of your home, the value of your personal belongings, liability protection, and your living expenses coverage.
Title Insurance:
Investing in title insurance ensures protection for both you and your lender against any undiscovered future claims against the property’s title. The nationwide average cost for title insurance is around $1,000 though the exact cost can vary.
Home Inspection:
An essential step in the home buying process is a comprehensive home inspection to ensure the property’s safety and structural integrity. In Louisiana, the average cost for a home inspection of a 2,000 square foot home is $290.
Real Estate Transfer Tax:
You can breathe easy because Louisiana is one of few U.S. states exempt from real estate transfer tax at both state and local levels.
Having a firm understanding of these costs will help you budget appropriately before taking the plunge and purchasing your dream house in Louisiana.
How to Calculate Your Louisiana Mortgage Payment
Calculating your Louisiana mortgage payment doesn’t have to be as spicy as a crawfish boil recipe. Here are the main components you’ll need to consider:
Mortgage Principal:
This is the total amount of money that you’re borrowing from the lender – excluding any interest or additional charges.
Interest Rate:
This is the added cost the lender charges you for borrowing the money. It’s calculated annually as a percentage of your loan principal.
Loan Term:
The term of the loan is the length of time you have to repay it, typically 15 or 30 years.
Using these three core elements, several online mortgage calculators can help you estimate your monthly mortgage payment in seconds. All you have to do is type in your loan principal, interest rate, and loan term, and voila! You’ll have your estimated monthly payment.
However, these aren’t the only costs to keep in mind. You might also need to consider:
Property Taxes: These taxes vary by county in Louisiana and are usually included in your monthly mortgage payment.
Home Insurance: Typically a requirement by your lender, the cost of your home insurance policy is often rolled into your monthly mortgage payment.
Mortgage Insurance: If your down payment is less than 20% of your total home price, you might also need to pay for mortgage insurance.
Remember, these calculations provide an estimation and your actual costs might differ slightly. For personalized advice, it’s always a good idea to seek help from a mortgage professional. With all this information at hand, you’re well on your way to planning your budget for your new home in Louisiana.