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Whether you’re a first-time homebuyer or a seasoned investor, navigating the complexities of a mortgage loan can be a task. And when you need a jumbo loan for an especially large sum, there are special considerations. This article will walk you through how to use a jumbo loan calculator effectively and share key terms and essential differences between a jumbo loan and a typical mortgage. Before you know it, you’ll be well prepared to make critical decisions about your home purchase and your finances.
Key Points
• A jumbo loan calculator helps estimate monthly mortgage payments, including principal, interest, and property taxes.
• Users can employ the jumbo loan calculator to explore different down payment amounts, loan terms, and interest rates to find the best financial fit.
• Jumbo loans typically require a down payment of at least 10% and have other distinctive characteristics.
• Throughout Louisiana, the 2025 conforming loan limit for a single-family home is $806,500, and any loan amount greater than that will require a jumbo loan.
• Qualifying for a jumbo loan often requires having a credit score of at least 700, plus cash reserves.
Louisiana Jumbo Loan Calculator
Calculator Definitions
• Jumbo loan: A jumbo mortgage loan is a home loan that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA). In Louisiana counties in 2025, the limit for a single-family home is $806,500. If you need a loan for more than this amount, you’re in the market for a jumbo loan.
• Home price: The home price is the agreed-upon purchase price established between you and the home seller. This figure is essential for determining the size of your home loan and the overall cost of homeownership over time.
• Down payment: The down payment is the initial amount the homebuyer contributes upfront, typically expressed as a percentage of the total purchase price. For jumbo loans, a down payment of at least 10% is generally required by lenders.
• Loan term: The loan term is the length of time you have to repay the mortgage, from 10 to 30 years. A longer term lowers your monthly payment but increases the total interest paid over the life of the loan. A shorter term increases your monthly payment but reduces the total interest. Use the jumbo loan calculator to experiment with different loan term options to see what works for you.
• Interest rate: The interest rate is the cost of borrowing money, expressed as a percentage of the total loan amount. Different types of mortgage loans have different rates. A lower interest rate reduces both your monthly payments and the total interest paid over the life of the loan, so you’ll want to shop around and compare offers from multiple lenders.
• Annual property tax: Annual property tax is levied by local governments on land and buildings, typically expressed as a percentage of the property’s assessed value. In Louisiana, the effective property tax rate is 0.55%, one of the lower rates in the U.S.
How to Use the Louisiana Jumbo Loan Calculator
Using the Louisiana jumbo loan calculator is much like using any mortgage calculator. Follow these steps for best results:
Step 1: Enter Your Home Price
Type in or use the slider to choose the home price listed on your purchase contract, or the price you think the home will cost after negotiations. This figure is critical for accurate estimations.
Step 2: Add a Down Payment Amount
Specify the amount you’ve accumulated for your down payment. A down payment of at least 10% is generally required for jumbo loans. You can use a down payment calculator to check your percentage if necessary.
Step 3: Choose a Loan Term
Select a loan term based on your financial goals and how long you plan to stay in the home. A 30-year term offers lower monthly payments, while a shorter term saves on interest.
Step 4: Enter an Interest Rate
Input your mortgage rate (or the rate you think you can obtain) to the second or third decimal point for precision. The interest rate significantly affects your monthly payment and total interest paid.
Step 5: Enter Your Annual Property Tax
Enter your property tax rate as a percentage. As noted above, Louisiana’s effective property tax rate is 0.55%. To see the specific rate for the property you are buying, search by ZIP code or county name.
What Are Jumbo Loans and Conforming Loan Limits?
Before you apply for a larger-sized mortgage, take a few minutes to make sure you understand what a jumbo loan is. A jumbo loan is a mortgage that exceeds the conforming loan limits set by the Federal Housing Finance Agency (FHFA). These jumbo loan limits are set county by county, but in all Louisiana counties, the 2025 conforming loan limit for a single-family home is $806,500.
Pros and cons of jumbo loans are pretty simple. On the “pro” side, a jumbo loan allows for the purchase of a higher-priced property by those who meet lenders’ financial qualifications. The cons? Those qualifying characteristics can be a bit more steep than with a conforming loan.
Jumbo loan requirements include having a credit score of at least 700. Some lenders like to see 720 or more. You’ll also be asked to document your cash reserves. Lenders also typically require a down payment of 10% or more, whereas a conforming loan might in some cases have a down payment of just 3%. Understanding all this is critical as you explore financing for a high-value property.
Using a jumbo loan calculator helps you budget effectively by providing a clear estimate of your monthly mortgage payments, including principal, interest, and property taxes. This breakdown prevents financial surprises and ensures you’re prepared for the long-term commitment of such a large loan. The calculator also shows how minor changes in interest rates can affect your payments. And it enables you to compare offers from multiple lenders, helping you find the most cost-effective option.
How to Use the Jumbo Loan Calculator to Compare Scenarios
Using the jumbo loan calculator to compare scenarios can help you make well-informed financial decisions. Adjust the down payment amount, loan term, or interest rate while holding the other numbers constant to see how these changes impact your monthly payments and total interest paid.
Current mortgage rates by state.
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Deciding How Much House You Can Afford in Louisiana
When determining how much house you can afford in Louisiana, consider more than just median home prices. Lenders typically recommend a mortgage payment that is no more than 28% of your gross monthly income. For example, a $1 million home might require $250,000 in annual income, assuming a 10% down payment and a 30-year mortgage at 6.75%. This translates to roughly $5,837 monthly, excluding property taxes. Significant debts will increase the income needed, although lenders can be somewhat flexible with jumbo loans and may make allowances based on the applicant’s cash reserves as well as income.
Another way to determine whether you can afford a property with a jumbo-sized price in Louisiana is to seek mortgage preapproval from one or more lenders. If you qualify, you’ll get a sense of how much you might be able to borrow and at what interest rate.
Components of a Jumbo Loan Payment
The main components of a jumbo loan payment are the principal and interest, representing the borrowed amount and the cost of borrowing, respectively. Property tax is another significant component and can be especially steep on a jumbo-loan property given the higher assessed value the home is likely to have. Some lenders also like to see borrowers pay for their homeowners insurance and any homeowners association fees as part of their monthly payment.
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
Cost of Living in Louisiana
The cost of living in Louisiana can vary significantly depending on the area you choose to live in, but generally speaking, the Bayou State is one of the more affordable places to put down roots. On a cost-of-living scale where 100 equals the U.S. average, Louisiana weighs in at 92.3, similar to Texas and Georgia. Housing and utilities costs are particularly affordable here, meaning that if you’re purchasing a higher-priced property your money may go just a bit further here.
Even if the area of Louisiana that you want to live in necessitates a jumbo mortgage, there are strategies to make your mortgage payment more affordable. Here are some tips:
• When deciding on a loan, consider an adjustable-rate mortgage (ARM) for a lower initial interest rate. ARMs offer a fixed rate for an introductory period, typically 5, 7, or 10 years, that is often lower than the rate offered for a fixed-rate loan. It’s not uncommon for people with an ARM to do a mortgage refinance into a fixed-rate loan if costs eventually adjust upward.
• Shop for a lower homeowners insurance rate. Compare quotes from different providers to potentially save hundreds of dollars each year, reducing your overall housing costs.
• Appeal your property taxes. If you think you can document that your assessment is too high, challenge it with your local tax authority to potentially lower your monthly payment.
• If you receive a financial windfall, consider making a lump sum payment to recast your loan, which can lower your monthly payments without changing the loan terms.
• If loan rates drop significantly, explore refinancing a jumbo loan. Remember to factor in closing costs as you decide whether or not a refi makes sense.
• Modify your loan. In the event of financial hardship, negotiate with your lender to change the terms of your mortgage, making your monthly payments more manageable.
The Takeaway
Although qualifying criteria can be somewhat strict and a higher-than-average down payment is usually required, jumbo loans offer the flexibility some buyers need to finance an expensive home. Using a Louisiana jumbo loan calculator is a smart way to estimate monthly payments and understand how your down payment amount, loan term, and interest rate will affect your financial obligations.
When you’re ready to take the next step, consider what SoFi Home Loans have to offer. Jumbo loans are offered with competitive interest rates, no private mortgage insurance, and down payments as low as 10%.
SoFi Mortgages: We make mortgage loan applications smart and simple.
In Louisiana, a jumbo loan on a single-family home in 2025 is any loan that exceeds $806,500, the conforming loan limit set by the Federal Housing Finance Agency. Multiunit properties have a different threshold. A jumbo loan on a two-family property, for example, is $1,032,650.
Do you need 20% for a jumbo loan?
While a 20% down payment is often ideal for a jumbo loan, it’s not always a strict requirement. Some lenders may accept a down payment as low as 10%. Use a jumbo loan calculator to explore different scenarios and understand the impact of various down payment amounts.
What are the benefits of a jumbo loan?
The chief advantage of a jumbo loan is that it offers a higher borrowing limit than a conforming loan, allowing borrowers to purchase more expensive homes. Jumbo loans can come with competitive interest rates and flexible underwriting options, provided the borrower meets the lender’s qualifications, which might include a credit score over 700 and significant cash reserves.
How much are closing costs on a jumbo loan?
Closing costs for jumbo loans typically range from 2% to 5% of the total loan amount. For a $1 million jumbo loan, closing costs could be between $20,000 and $50,000. Specific costs include appraisal fees, title insurance, attorney fees, and underwriting fees. Make sure you consider these costs when evaluating which lender offers the best deal.
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*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
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