Louisiana Mortgage Calculator

Louisiana has one of the LOWEST property tax rates in the United States. STATE AVERAGE: 0.55% (effective rate). NATIONAL AVERAGE: 1.10% (effective rate). SAVINGS: ~50% lower than national average. PROPERTY TAX BY PARISH: Caddo Parish (Shreveport): 0.18% - Lowest in state. Orleans Parish (New Orleans): 0.25%. Jefferson Parish (Metairie): 0.35%. St. Tammany Parish: 0.65%. Lafayette Parish: 1.45%. East Baton Rouge (Baton Rouge): 1.89% - Highest in state. ANNUAL SAVINGS EXAMPLE on $300,000 home: Louisiana (0.55%): $1,650/year. National average (1.10%): $3,300/year. Annual savings: $1,650. Source: Louisiana Tax Commission, Tax Foundation.

TYPICAL RANGE: 2.5% to 4.5% of home price. FOR A $300,000 HOME: Low estimate: $7,500. Average: $10,500. High estimate: $13,500. CLOSING COST BREAKDOWN: 1. Lender Fees (1-1.5%): Origination fee 0.5-1%, Application fee $300-500, Underwriting $400-600. 2. Title & Escrow (0.5-1%): Title search $200-400, Title insurance $1,000-2,000, Escrow fees $500-1,000. 3. Government Fees: Recording fees $100-200, Transfer taxes vary by parish, Property survey $300-500. 4. Prepaid Items: Property tax escrow 2-3 months, Insurance premium 1 year, Prepaid interest 15-30 days. LOUISIANA-SPECIFIC: Attorney required for closing in Louisiana (add $500-1,500).

HURRICANE/WINDSTORM INSURANCE: Not mandated by state law. Most lenders REQUIRE it for coastal areas. Required if property is in FEMA-designated high-risk zone. FLOOD INSURANCE REQUIREMENTS: REQUIRED if in Special Flood Hazard Area (SFHA). Federally-backed loans mandate flood insurance. Available through NFIP or private insurers. AVERAGE COSTS: Hurricane/Wind: $1,500-4,000/year. Flood insurance: $700-2,500/year. Total additional: $2,200-6,500/year. HIGH-RISK PARISHES: Orleans, St. Bernard, Plaquemines (coastal). Cameron, Vermilion (Gulf Coast). Terrebonne, Lafourche (bayou areas). LOUISIANA CITIZENS PROPERTY INSURANCE: State-run insurer of last resort for high-risk properties. TIP: Get quotes BEFORE buying - insurance costs can significantly impact affordability in coastal areas. Source: Louisiana Department of Insurance, FEMA.

LHC HOMEOWNERSHIP PROGRAMS (Louisiana Housing Corporation): Market Rate Program: Below-market interest rates, up to $55,000 in assistance, 30-year fixed-rate mortgages. Mortgage Credit Certificate (MCC): Tax credit of 20-40% of mortgage interest, can save $2,000+ annually, combinable with other programs. DOWN PAYMENT ASSISTANCE: Soft Second Mortgage: Up to $55,000 or 20% of home price, 0% interest, deferred payments, forgiven after 10 years if you stay. Grant Programs: Up to $6,000 in grants, no repayment required. ELIGIBILITY: First-time buyer or haven't owned in 3 years, income limits vary by parish, minimum credit score 640, homebuyer education course required. SPECIAL PROGRAMS: Heroes Program for police, fire, EMTs, teachers. Rural Development USDA loans. VA Loans with no down payment for veterans. Apply at: lhc.la.gov.

WHEN PMI IS REQUIRED: Down payment less than 20%. Conventional loans (not FHA/VA). Typically 0.3% to 1.5% of loan amount annually. PMI COST EXAMPLES ($300,000 home, $270,000 loan): 5% down: $150-200/month PMI. 10% down: $100-135/month PMI. 15% down: $65-90/month PMI. 20% down: $0 PMI. HOW TO REMOVE PMI: Automatic removal at 78% LTV. Request removal at 80% LTV. Refinance when home value increases. Home value appreciation (reappraisal). ALTERNATIVES TO PMI: Piggyback loans (80-10-10). Lender-paid PMI (higher rate). FHA loans (MIP instead of PMI). VA loans (no PMI for veterans). TOTAL SAVINGS: Putting 20% down on a $300,000 home saves $36,000-72,000 over the life of the loan.

TYPICAL RATE RANGES: 30-Year Fixed: 6.75-7.25%. 15-Year Fixed: 6.00-6.50%. 5/1 ARM: 5.75-6.25%. FHA 30-Year: 6.50-7.00%. VA 30-Year: 6.25-6.75%. FACTORS AFFECTING YOUR RATE: Credit Score: 760+ gets best rates (-0.25%), 700-759 standard, 640-699 higher (+0.50%). Down Payment: 20%+ best rates, 10-19% +0.125%, 3-9% +0.25-0.50%. Loan Type: Conventional standard, FHA often lower for lower credit, VA usually lowest. LOUISIANA-SPECIFIC: Rural parishes may qualify for USDA loans (lower rates). LHC programs offer below-market rates. Flood zone properties may face higher rates. RATE SHOPPING TIP: Get quotes from at least 3 lenders. Even 0.25% difference saves $15,000+ over 30 years on a $300,000 loan. Source: Freddie Mac, Louisiana lender surveys.

EFFECTIVE PROPERTY TAX RATES: Louisiana: 0.55% (2nd lowest in region). Texas: 1.60% (no income tax, high property tax). Arkansas: 0.62%. Mississippi: 0.65%. Alabama: 0.37% (lowest in region). National Average: 1.10%. ANNUAL TAX ON $300,000 HOME: Louisiana: $1,650. Texas: $4,800 (+$3,150). Arkansas: $1,860 (+$210). Mississippi: $1,950 (+$300). Alabama: $1,110 (-$540). WHY LOUISIANA PROPERTY TAXES ARE LOW: Homestead Exemption: First $75,000 exempt. Senior Freeze: Tax assessment locked at 65+. Revenue from oil/gas industry. Lower local government spending. HOMESTEAD EXEMPTION: Exempts first $75,000 of assessed value. Only for primary residence. Must apply at parish assessor's office. Saves $300-1,500/year depending on parish. Source: Tax Foundation, Louisiana Tax Commission.

WHAT IT IS: A tax exemption that removes the first $75,000 of your home's assessed value from parish property taxes. HOW IT WORKS: Assessed Value = 10% of Market Value. Exemption = First $75,000 of market value. You pay taxes only on value ABOVE $75,000. EXAMPLE ($300,000 home): Market Value: $300,000. Assessed Value: $30,000 (10%). Exempt Amount: $7,500 (10% of $75,000). Taxable Value: $22,500. At 0.55% rate: $124/month vs $138/month without exemption. ELIGIBILITY REQUIREMENTS: Primary residence only. Louisiana resident. Own and occupy the property. Must apply at parish assessor's office. HOW TO APPLY: Visit parish assessor's office. Bring proof of ownership (deed). Bring ID/driver's license. Complete homestead exemption form. Deadline: Before December 31 for next year. ADDITIONAL EXEMPTIONS: Veterans: Additional $15,000 exemption. Seniors (65+): Assessment freeze. Disabled: Additional exemptions available. Source: Louisiana Constitution Article VII, Section 20.

GENERAL RULES: 28/36 Rule: Housing ≤28% of gross income, total debt ≤36%. 3x Income: Home price ≤3x annual income (conservative). 4-5x Income: More aggressive with low debt. AFFORDABILITY BY INCOME ($250K home, 7% rate, 20% down): $5,000/month income: $200,000 max home, $1,400/month payment. $7,500/month: $300,000 max, $2,100/month. $10,000/month: $400,000 max, $2,800/month. LOUISIANA ADVANTAGES: Lower property taxes = more buying power. Lower insurance in non-flood zones. Lower cost of living than coastal states. First-time buyer assistance available. LOUISIANA MEDIAN HOME PRICES: New Orleans: $280,000. Baton Rouge: $250,000. Lafayette: $220,000. Shreveport: $180,000. Lake Charles: $200,000. AFFORDABILITY CALCULATION ($80,000 income): Max monthly payment (28%): $1,867. Max home price: ~$300,000. With LA property tax savings: ~$320,000 buying power.

LOWEST PROPERTY TAXES: 1. Caddo Parish (0.18%) - Shreveport. 2. Orleans Parish (0.25%) - New Orleans. 3. Jefferson Parish (0.35%) - Metairie. STRONGEST APPRECIATION: 1. St. Tammany Parish - 8% avg annual. 2. Livingston Parish - 7% avg annual. 3. Ascension Parish - 6% avg annual. BEST VALUE (Price + Taxes + Quality): 1. Jefferson Parish: Median home $240,000, Property tax 0.35%, Good schools, Close to New Orleans. 2. St. Tammany Parish: Median home $320,000, Property tax 0.65%, Top schools in state, Strong appreciation. 3. Lafayette Parish: Median home $220,000, Property tax 1.45% (higher), Growing job market, Cajun culture. BY BUYER TYPE: First-Time Buyers: Lafayette, Shreveport (affordable). Families: St. Tammany (best schools), Livingston. Retirees: Orleans (walkable, culture), Caddo (lowest taxes). Investors: New Orleans (rental demand), Baton Rouge (college rentals). Source: Louisiana Realtors Association, Zillow.

STEP 1: CALCULATE LOAN AMOUNT. Loan = Home Price - Down Payment. Example: $300,000 home, 20% down. Loan = $300,000 - $60,000 = $240,000. STEP 2: CALCULATE PRINCIPAL & INTEREST. Formula: M = P × [r(1+r)^n] / [(1+r)^n - 1]. Where: M = Monthly payment, P = Loan amount ($240,000), r = Monthly rate (7% ÷ 12 = 0.00583), n = Total months (30 years × 12 = 360). Result: $1,597/month P&I. STEP 3: ADD LOUISIANA COSTS. Property Tax (monthly): $300,000 × 0.55% ÷ 12 = $138/month. Home Insurance (monthly): $2,400 ÷ 12 = $200/month. Flood Insurance (if required): $1,500 ÷ 12 = $125/month. PMI (if applicable): Loan × 0.5% ÷ 12 = $100/month. STEP 4: TOTAL MONTHLY PAYMENT. P&I: $1,597 + Property Tax: $138 + Insurance: $200 + Flood: $125 + PMI: $100 = TOTAL: $2,160/month. Use our calculator above for instant, accurate calculations with your specific Louisiana parish rates.

INCOME VERIFICATION: W-2s (last 2 years). Pay stubs (last 30 days). Tax returns (last 2 years). Self-employed: Profit/loss statements. ASSET DOCUMENTATION: Bank statements (last 2-3 months). Investment account statements. Retirement account statements. Gift letter (if using gift funds). IDENTITY & RESIDENCE: Driver's license or state ID. Social Security card. Current lease or mortgage statement. Utility bills (proof of address). PROPERTY DOCUMENTS: Purchase agreement. Listing information. Homeowners insurance quote. Flood insurance quote (if in flood zone). LOUISIANA-SPECIFIC REQUIREMENTS: Flood zone determination. Hurricane/wind insurance quote (coastal). Termite inspection (very important in LA). Elevation certificate (flood zones). CREDIT INFORMATION: Explanation letters for any issues. Bankruptcy discharge papers (if applicable). Divorce decree (if applicable). ATTORNEY REQUIREMENT: Louisiana requires an attorney to close real estate transactions. Budget $500-1,500 for attorney fees. PRE-APPROVAL TIPS: Gather documents before shopping. Don't make major purchases during process. Don't change jobs if possible. Keep paying all bills on time. Source: Louisiana Real Estate Commission.