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If you’re trying to buy a home in Louisiana, a mortgage calculator can be a useful tool for you. It can be especially helpful if you’re a first-time homebuyer who’s never held a mortgage — but also if you are a current or former homeowner looking to buy again. By exploring how various home prices, interest rates, and loan terms may affect monthly payments and the ultimate cost of a home mortgage loan, you can make smart decisions and budget responsibly.
Key Points
• As a homebuyer, a mortgage calculator can help you determine affordability and aid in your finance management.
• Your mortgage payments in Louisiana typically include principal, interest, and property tax. They may also comprise homeowners insurance, and other coverage and fees.
• Lenders recommend that you choose a property that will let you keep mortgage payments under 28% of your gross monthly income.
• Programs that can assist first-time homebuyers with things like down payments and closing costs are available in Louisiana.
• If you are feeling the pinch and need to reduce your monthly mortgage payment, you might want to look into a recast or refinance.
Louisiana Mortgage Calculator
Calculator Definitions
• Home price: The home price is the purchase amount agreed upon by a buyer and seller. If you’re buying your first home in Louisiana, it will be a determiner of both your mortgage loan amount and your monthly payment.
• Down payment: A down payment is the very first installment on a home purchase, usually an amount between 3% and 20% of the home price. Down payment assistance programs can be very useful if you need help covering this cost — especially if you’re a first-time buyer. A healthy down payment can help you score better loan terms, and avoid the expense of private mortgage insurance (PMI), too.
• Loan term: This is the period of time you can take to repay your home loan. A 15-year term usually carries higher monthly payments — but in the end you’ll pay less interest. A 30-year mortgage, generally the longest term you can get, offers lower monthly payments but racks up more interest overall.
• Interest rate: The interest rate tends to be expressed as a percentage of the loan amount, and represents the cost of borrowing the money to buy a home. Your rate will be based on the type of mortgage loan you apply for, how the market trends, and your qualifications as a borrower.
• Annual property tax: Local governments levy property taxes on land and buildings using guidelines that are set by the state. In Louisiana, the effective property tax rate on owner-occupied homes is 0.51 percent. Understanding of your local rates is useful — it can help you plan your budget and avoid surprises.
• Monthly payment: This is the amount you’ll pay toward your mortgage 12 times each year. It will include principal and interest, and may comprise property taxes and homeowners insurance. If your down payment is less than 20% of your home price, PMI may also be a line item.
• Total interest paid: The amount of interest you’ll pay during your mortgage loan’s entire life is total interest paid. This cost is influenced by loan term, interest rate, and down payment. A longer term or a higher interest rate will increase the total interest you’ll pay. A larger down payment or shorter loan term can reduce this amount.
• Total loan cost: This all-in amount is what your whole loan expense will be, including principal plus interest. Thirty-year mortgages have higher total loan costs than 15-year mortgages, due to their longer repayment term and more interest accrued.
How to Use the Louisiana Mortgage Calculator
Step 1: Enter Your Home Price
Add the agreed-upon cost of the property into the calculator.
Step 2: Select a Down Payment Amount
Choose the amount of the home price you are planning to pay upfront. A down payment calculator will help you visualize the impact of different down payment amounts as you try to find a sweet spot for your monthly mortgage payment.
Step 3: Choose the Loan Term
Select the duration for your mortgage loan. Common terms include 15-year and 30-year. A 30-year term means your mortgage will offer lower monthly payments, but you’ll pay more interest over the life of the loan than you would with a 15-year mortgage at the same rate.
Step 4: Enter an Interest Rate
Input the interest rate you’ve been offered or are hoping to get, to the second or third decimal point, such as 6.74%. This rate significantly affects your monthly payments and the total interest you’ll pay over the life of the loan. The lower your number the better!
Step 5: Add the Annual Property Tax Information
Enter your state’s property tax rate and the calculator will give you a more comprehensive view of your monthly mortgage payment with property taxes factored in.
Benefits of Using a Mortgage Payment Calculator
A mortgage calculator can estimate your monthly payments for a potential home purchase. It will give you a fast sense of the true cost of homeownership. If you are buying your first home, a mortgage calculator can help you see in a moment just how much home you can fit into your budget.
Another tool called a home affordability calculator works a little differently, but can also be a big help if you’re hoping to buy a home. It allows you to work backward from your income level to arrive at a home price you know you can afford.
Another way to get a clear view of your purchase budget and figure out what your ideal down payment would be is to go through the mortgage preapproval process with a lender. This is more in-depth and will require you to locate and input real data and documents, but you will end up with specifics from lenders on what they would be willing to lend you, and at what rate.
Louisiana’s median single-family home sale price in the spring of 2025 was $257,600. Lenders advise a mortgage payment within 28% of gross monthly income, so affording a home at this price would require an income of about $69,000 per year. This assumes the buyer puts down 20% ($50,000) and obtains a 30-year mortgage at 7.00%. The monthly payment on this loan, including principal, interest, property taxes, and insurance, would be just over $1,600.
For certain higher-priced properties, some homebuyers will need to seek out a jumbo loan. This sort of home mortgage loan requires a higher minimum down payment.
Buyers may find it daunting to put down 20% on a pricier property, and will decide to opt for a smaller down payment. Keep in mind that doing this increases the loan size and in turn your monthly costs. It also triggers PMI, which adds to your monthly payment. But it can make sense if a smaller down payment is the only way you can go. A mortgage calculator will help you run the numbers to make the best decision for your financial situation.
If you are considering a home loan guaranteed by the Federal Housing Administration (FHA), you can use a tool called an FHA mortgage calculator, which factors in both upfront and ongoing mortgage insurance premiums that are specific to this option.
A VA mortgage calculator is another one that can be useful – look at this option if you’re weighing the benefits of a loan backed by the U.S. Department of Veterans Affairs.
Components of a Mortgage Payment
Your mortgage payment each month will include a few different sums, such as loan principal (the amount you’ve borrowed) and interest (the borrowing cost you must pay your lender to use the money). The Louisiana mortgage calculator also includes property tax, since many lenders want you to pay your taxes as part of your monthly payment. PMI will need to be in there if your down payment is less than 20%. Some lenders will want to include home insurance and homeowners association (HOA) fees in the payment as well.
Compare current home interest rates by state and find a mortgage rate that suits your financial goals.
Select a state to view current rates:
Cost of Living in Louisiana
The cost of living in Louisiana is relatively low compared to the national average, which means you can get more for your dollar in this state. On an index where 100 is the U.S. average cost of living, the Pelican State weighs in at 92.3, making it the 15th most affordable state in the country. When you’re thinking about your housing budget, don’t forget that you will also need to pay for other things, too — necessities like utilities and health-related costs are also below-average in Louisiana.
Relatively affordable living is abundant in Louisiana. Many cities here make a list of the best affordable places in the U.S., including Zachary, Jennings, Bastrop, Elmwood and Lafayette. The only major city that has an above-average cost of living index, according to COLI 2024 Annual Average Data, is New Orleans.
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.
Tips on Reducing Your Mortgage Payment
If you find that the interest rate or the monthly payment on your mortgage loan doesn’t amount to a workable scenario for you long-term, there are ways you can lower it. Here are a few options you can consider:
• Keep a close eye on your equity as it accrues, and ask your lender to remove the charge for PMI once you’ve reached 20%.
• Recast your mortgage. You can do this by paying a lump sum toward the principal and then asking your lender to recompute the monthly payment.
• Pursue a mortgage refinance if you notice that current rates and overall costs could amount to an attractive savings for you.
• Consider an appeal of your property taxes if you feel yours are unnecessarily high. Use caution, though — reassessments can backfire, resulting in your property tax going up instead of down.
• If you encounter financial hardship, contact your lender and ask for a modification of the loan to make it more manageable.
• Shop around for ways to lower your homeowners insurance costs. This is possible by increasing your deductible or bundling lower-priced policies.
If you have your sights set on buying your first home, there is support for you in Louisiana. The state has down payment assistance programs in place that can help you cover the initial costs. You may also qualify as a first-time homebuyer if you have not owned a primary residence within the past three years.
Programs like the Louisiana Housing Corporation can provide first-time homebuyers with financial aid for the down payment, closing costs, or both, making homeownership more accessible. The state’s first-time homebuyer programs for Louisiana residents include options for potential homebuyers without a credit history, and for those who were impacted by the 2016 floods that struck the state.
The Takeaway
The Louisiana mortgage calculator is a powerful helper for anyone who is considering a home loan in this bayou region state. The tool can help you estimate monthly payments and total interest, plus show you what the overall cost of your mortgage would be, taking into account your down payment amount and property tax rate. The calculator can provide you with a solid starting point for getting preapproved for a mortgage, and will set you up with a precise assessment of your mortgage options and to ensure you meet lender’s requirements.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
Your monthly mortgage payment will include principal and interest on your home loan. If you make a down payment less than 20%, the payment will most likely also include PMI, or private mortgage insurance. Some lenders roll property taxes, homeowners insurance, and/or homeowners association dues into the amount. Understanding which components are part of your loan and how your payment breaks down can help you budget more effectively.
How does my credit score affect my mortgage loan interest rate?
Your credit score is going to influence your mortgage interest rate in a big way. A higher score will pretty reliably lead to a more favorable rate, while a lower score may result in a higher rate. Whichever way your score leans, it’s going to impact the total cost of your home loan.
What are the principal and interest on a mortgage loan?
Principal is simply the amount you borrow to pay the home price. Interest is the cost of borrowing that principal, expressed as a percentage. When you initiate a mortgage, your early payments will go toward covering the interest, mostly; as you continue to make monthly payments, the amount going to the principal gradually increases. You also build more equity in your property.
Can I afford a $300K house on a $70K salary?
You are close, but you would be smarter to choose a home that is a little lower in price. Paying off a $300,000 property when you’re bringing home $70,000 annually is going to end up being a strain unless you can make a big down payment to bring down the loan principal. Advisors say you’ll be best off if the price of your home doesn’t exceed your salary times three. Use a home affordability calculator to crunch your numbers — it will help you see how much down payment you’d need to make a $300,000 home doable.
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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.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
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Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
