How much should my down payment be on a mortgage?

How much you put down should be what you feel comfortable with, taking into account your financial situation. A 20% down payment can help avoid private mortgage insurance (PMI) and could reduce monthly payments and overall loan cost. A first-time homebuyer can sometimes put down as little as 3% toward the purchase price of a home, while a repeat buyer may be able to contribute just 5%. To determine how much your down payment should be, review your financial picture and figure out what makes sense for you.

How can I secure a lower interest rate?

Improve your credit score to 700 or higher for the most competitive rates (you will need a 620 credit score to qualify for a home loan). Go through the prequalification process with a variety of lenders and compare rates. If you can afford it, consider putting down a larger down payment. If you already own a home, you can explore a mortgage refinance and compare the cost of your old loan versus a new one (plus closing costs) at a new, lower rate.

Sep

27

2025

Free Minnesota Home Mortgage Loan Calculator

By Dana Paltao | mortgage | Comments Off

Minnesota Mortgage Calculator

Q: Should I choose a 30-year or 15-year mortgage term?

When choosing a mortgage term, consider that a 30-year term offers lower monthly payments but costs more in interest over time, while a 15-year term has higher monthly payments but costs less in interest overall. Assess your financial goals and budget when opting for a certain term.

By SoFi Editors | Updated September 26, 2025

If you’re thinking about the possibility of purchasing a home in the North Star State, figuring out if you can handle the mortgage payments ahead — and exactly how you’ll pay them each month — is a big prep step. A Minnesota mortgage calculator can provide you with clarity on what your monthly expenses might look like. It can also assist you in making informed decisions about your down payment, loan term, and more. This article will fill you in on how to use a mortgage calculator and help you get the most out of this tool as you look for your dream home in Minnesota.

Key Points

• Using a mortgage calculator involves inputting the home’s purchase price, your down payment, and the interest rate and loan term.

• The home’s Minnesota property tax rate will impact the monthly payment amount.

• A loan’s term may be 10 to 30 years, and will be a determiner of monthly and overall costs.

• First-time homebuyer programs can help aspiring buyers afford a down payment or cover closing costs.

• A mortgage calculator can help you determine what home price, down payment, and interest rate best suit your financial situation, so you can find a home you can afford.

Minnesota Mortgage Calculator

Calculator Definitions

• Home price: The home price is the purchase price you’ve agreed on with the property’s seller. This figure may differ from the listing price and the initial offer you made.

• Down payment: The down payment is the amount the homebuyer pays upfront, and is often expressed as a percentage of the home price. Most buyers put down between 3% and 20%. A down payment calculator can show how different percentages translate into dollar amounts.

• Loan term: Most homebuyers pay off their mortgages over a 15-year or 30-year term, though 10- and 20-year terms may also be available. A longer term means lower payments but more interest to pay over the life of the home loan. A shorter term means higher monthly payments but faster equity — and less interest in the end.

• Interest rate: The interest rate is the cost of borrowing the money to buy a home, and is expressed as a percentage of the loan amount. Interest rates vary based on borrower qualifications, market trends, and the type of mortgage loan sought.

• Annual property tax: Property tax is levied by local governments on land and buildings. It’s expressed as a percentage of a home’s assessed value. Minnesota’s annual property tax rate is currently 0.98%.

• Monthly payment: The monthly payment that the Minnesota calculator crunches includes loan principal and interest, as well as property taxes. Keep in mind that you may need to pay for private mortgage insurance (PMI), homeowners insurance, and homeowners association (HOA) fees in addition.

• Total interest paid: The total interest paid amounts to how much interest you’ll pay over the life of your home loan. This figure can be substantial — and grows with your loan’s term. The Minnesota mortgage calculator shows you how different down payment amounts, interest rates, and loan terms affect the interest you will pay on the money you borrow.

• Total loan cost: The total loan cost is the all-in amount you’ll repay, including principal and interest. This figure gives you a clear understanding of the long-term financial commitment buying a home entails.

How to Use the Minnesota Mortgage Calculator

Step 1: Enter Your Home Price

Type in the final negotiated amount you’ve agreed to pay the seller for the property. This lets the calculator create an accurate estimate of your monthly mortgage payments.

Step 2: Select a Down Payment Amount

Choose the percentage of the home price you plan to pay upfront. A larger down payment will make your monthly mortgage payments more manageable and potentially eliminate a need for PMI, which is usually required if you put down less than 20% of the home price.

Step 3: Choose a Loan Term

Select the amount of time over which you’ll repay your mortgage, typically 15 or 30 years. The longer the term, the lower the monthly payments but the higher the total interest paid.

Step 4: Enter an Interest Rate

Input your desired interest rate to the second or third decimal point. This rate significantly impacts both your monthly mortgage payment and the total cost of the loan.

Step 5: Add Your Property Tax

Enter the percentage of your home’s value that you’ll be required to pay each year as property tax. If your property tax rate is 0.78%, for instance, you’ll enter 0.78. Count on it impacting your total monthly mortgage payment.

Benefits of Using a Mortgage Payment Calculator

A mortgage calculator helps homebuyers estimate the affordability of different loan scenarios. You can calculate monthly payments and long-term costs based on the loan amount, interest rate, and term. The calculator also factors in funds to pay property taxes, which are often held in escrow by the mortgage company. The taxes are then paid to the appropriate agencies. (It’s in the lender’s interest for your property to stay out of tax arrears.)

If you’re buying your first home and the world of mortgage rates is new to you, you can easily get up to speed on how they work by using this calculator. It’s particularly proficient at demonstrating how different interest rates or down payment amounts can impact short- and long-term costs

Deciding How Much House You Can Afford

The median home sale price in mid-2025 in Minnesota was around $368,600, according to Redfin. Lenders recommend keeping your home loan payment at 28% or less of your gross monthly income. To buy a $350,000 home with a 20% down payment ($70,000) and a 30-year mortgage at 7.00%, you’d need a minimum income of nearly $100,000. Your monthly mortgage payment would be just under $2,300. You’d have to earn more to compensate if your down payment was smaller, or if you were carrying other debt.

Another way to get a handle on your Minnesota housing budget is to work backward from your gross monthly income using a home affordability calculator, which can take into consideration other debts you may be working on settling, like a car payment or a student loan balance.

You could test-run the mortgage preapproval process with a lender, too. Just provide detailed financial information to one or more institutions to see if the lenders will preapprove you. If you qualify, they will offer you a loan amount and interest rate.

Components of a Mortgage Payment

A mortgage payment mainly covers two things: an installment on the principal (aka the home price or borrowed amount) and accruing interest (the borrowing cost). Your monthly payment might also include other line items, like your property tax, which is based on your home’s value. If your down payment is less than 20%, the lender will likely require private mortgage insurance (PMI). Other costs potentially rolled into the payment include homeowners association (HOA) fees and homeowners insurance.

Homebuyers who are considering making a purchase with the help of a Federal Housing Administration (FHA) loan will have an upfront and ongoing mortgage insurance premium (MIP) to pay. Regardless, these loans are affordable and popular among first-time buyers. If you are looking at an FHA loan, use an FHA mortgage calculator to create a budget. Similarly, if you plan to purchase your home with a loan backed by the U.S. Department of Veterans Affairs, you’ll want to run your numbers through a VA mortgage calculator.

Recommended: Average Monthly Expenses for One Person

Current mortgage rates by state.

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 Minnesota

The cost of living in your area affects how much you can afford when you buy a home. According to Missouri Economic Research and Cost of Living data, Minnesota was close to the middle in the U.S. in late 2025 with an index of 94.6%. The state’s residents encounter slightly higher-than-average grocery and health-related costs.

Here’s a look at how some major Minnesota cities compare to the national average for living expenses. In the chart, 100 equals the average cost of living in the U.S.

Minnesota Cities’ Cost-of-Living Stats
Mankato	95.1
Minneapolis	93.6
St. Cloud	97.6
St. Paul	94.0

Other Minnesota towns that appear on a list of the best affordable places in the U.S. include Maple Grove, Eagan, Duluth, Red Wing, and Winona. Homes in some of Minnesota’s higher-cost cities and towns might require a jumbo loan as a mortgage option.

Recommended: Average Monthly Expenses for One Person

Run the numbers on your home loan.

Mortgage calculator

Punch in your home loan amount and a new interest rate, and we’ll estimate your payoff date.

Calculate
Down payment calculator

Enter a few details about your home loan and we’ll provide your monthly mortgage payment.

Calculate
Home affordability calculator

Provide us with a few details and see how much you can afford to spend on a home purchase.

Calculate

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

Minnesota homebuyers have strategies and opportunities to lower their mortgage payment. Here are some possible ways to reduce the amount you have to pay on your home loan monthly:

• Drop PMI when you reach 20% home equity. (You’ll need to inform your lender.)

• Recast your mortgage by making a lump-sum payment toward the principal, and then asking your lender to recalculate your monthly payment.

• Think about appealing your property tax — but only follow through if you can be very sure that they are too high. A reassessment can also result in a tax increase, which may well increase your monthly payment. Tread carefully here.

• If you find yourself facing financial hardship, request a possible loan modification from your lender.

• Extend your loan term from, say, 20 years to 30. This move can lower your monthly payments.

• Shop around for a less-costly homeowners insurance policy.

• Consider a mortgage refinance if mortgage rates have dropped since you bought your home. Don’t forget to factor in the closing costs on this move.

Minnesota First-Time Homebuyer Assistance Programs

If you qualify as a first-time homebuyer in Minnesota, you can possibly tap into state programs that aid aspiring owners with down payments or closing costs. A state agency called Minnesota Housing makes homeownership accessible to people with limited savings and earnings, providing below-market-interest-rate loans and down payment help for eligible low- and middle-income buyers. To top it off, you could get extra perks when you qualify as a new homebuyer — meaning you haven’t owned a primary residence in the last three years.

Consult a guide to first-time home-buying programs in Minnesota for advice.

The Takeaway

Getting to know what the Minnesota mortgage calculator can do for you is a great first step if you’re set on buying a home of your own. It can help you understand the financial commitment it takes to be successful after being granted a home loan. The calculator can help you make informed decisions about how much house you can afford and whether you’re prepared to make your purchase. Whether you’re a first-time homebuyer or a seasoned property owner, it can provide valuable insights.

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.

SoFi Mortgages: simple, smart, and so affordable.

View your rate

FAQ

How does my credit score affect my mortgage loan interest rate?

Your credit score has a serious impact on your mortgage interest rate, since lenders routinely offer their most attractive interest rates to borrowers with higher scores. The lower the interest rate, the more overall affordable the total cost of the mortgage will be. A lower score could result in a higher interest rate and stricter conditions, and could stand in the way of your approval.

How much should I put down on a mortgage?

You should make as large a down payment as you comfortably can on your home. Take care, however, not to pinch your finances and leave yourself without a cushion. Don’t empty your emergency fund or stop paying on other debts. Do take advantage of low down payments for first-time buyers, since they can in some cases put down as little as 3%. Repeat buyers may be able to contribute just 5%. In most cases, if you put down less than 20% you’ll have PMI added to your monthly bill. Always look at the entire financial picture to determine what makes sense for your financial scenario.

Should I choose a 15-year or 30-year term for my mortgage?

A 15-year term will have you making a higher monthly payment, but it could save you thousands of dollars in interest. A 30-year term gives you lower monthly payments, making homeownership quite a bit more accessible. Can your budget accommodate a term of 15 or even 20 years? Then shorter is a smart way to go. But you can also feel just fine locking in 30 years, especially if this is your very first home purchase. It’s the choice in most first mortgages in the U.S.

How can I get a lower mortgage interest rate?

To get the best rate, focus on your credit score and make it ultra-competitive (700 or higher, which is way over the 620 you need to simply qualify). Prequalify online with multiple lenders, and vie for the best rate they offer. Save up so you can make a higher down payment.

Can I afford a $300K house on a $70K salary?

It would not be easy to do. Paying off a $300,000 property when you are bringing home $70,000 annually is going to be a strain, unless you can find the cash to make a hefty down payment. Advisors say the price of your home shouldn’t exceed your salary times three — which in this example would be $210,000. Use a home affordability calculator to crunch some numbers and see how much down payment you’d need to make a $300,000 home doable. Then make a realistic call before making an offer.

Learn more about mortgages:

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

*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.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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.

SOHL-Q325-095

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Sep

27

2025

Free Michigan Home Mortgage Loan Calculator

By Dana Paltao | mortgage | Comments Off

Michigan Mortgage Calculator

By SoFi Editors | Updated September 22, 2025

House hunting can feel daunting. After all, it involves making some of the most significant financial decisions you’re likely to face. One way you can lower the stress level is to use this Michigan home mortgage calculator. This online tool can help by providing you with estimates of your monthly payment and total interest costs for different loans and by letting you see how making changes to your down payment or loan term will impact your financial obligations. Let’s explore how to use this tool and what it can do for you.

Key Points

• Your monthly mortgage payment is applied toward your principal and interest, and often property taxes. Sometimes it will cover homeowners insurance, private mortgage insurance (PMI), and homeowners association (HOA) fees.

• Many lenders prefer that a homebuyer pay no more than 28% of their gross monthly income on mortgage payments.

• Down payment assistance programs can be valuable resources for first-time homebuyers.

• The loan term that you choose will impact how large your monthly payments are and how much you will pay in total interest over the life of the loan.

• The interest rate you’re offered for your mortgage will depend on market factors but also on your personal financial situation and history.

Michigan Mortgage Calculator

Calculator Definitions

• Home price: This is the purchase price for the property that you and the home seller both agree on after you’ve finished negotiating. This figure is likely to differ from the initial listing price and from your first offer.

• Down payment: This is the lump sum you agree to pay upfront for the property. It typically ranges between 3% and 20% of the home price. A larger down payment can reduce the size of your monthly payments. Down payment assistance programs in Michigan may help you cover this cost.

• Loan term: This is the time period over which you will repay your home loan, most often 15 or 30 years. A 30-year term means you’ll have lower monthly payments but be charged more interest in total . A 15-year term results in higher monthly payments but lets you pay less interest over the life of the loan.

• Interest rate: This is essentially the cost for borrowing your home loan, expressed as a percentage of the loan amount. The interest rates you’re offered from lenders will depend on economic conditions, your qualifications, and the type of loan you take out.

• Annual property tax: Property tax is levied by local governments on land and buildings. The Michigan mortgage calculator will account for property tax if you enter the correct rate for the property’s location. To figure this out, search online for the town, county, or ZIP code where the property is located and “effective property tax rate.”

• Monthly payment: This is a major feature of your mortgage. It’s the amount that you would be charged for the loan principal and interest each month. It may also include property tax if you’ve entered your rate. While homeowners insurance, private mortgage insurance (PMI), and homeowners association (HOA) fees may also be part of monthly payments, they’re not included in this calculator’s results.

• Total interest paid: This is the cumulative interest charged over the entire duration of the loan. It’s influenced by the interest rate, loan term, and down payment size. Higher rates and longer terms increase total interest paid.

• Total loan cost: This includes everything you will owe on the loan, both the principal and all accrued interest. Factors like loan size, interest rate, and loan term affect this cost.

How to Use the Michigan Mortgage Calculator

This mortgage calculator is designed to be easy to use — all you need to do is input a few numbers to find the monthly payment and total interest associated with a home loan. Here are the step-by-step instructions.

Step 1: Enter Your Home Price

Input the final price that you and the seller have agreed upon. This sets the foundation for your calculations.

Step 2: Select a Down Payment Amount

Choose the percentage of the home price that you want to pay upfront — usually somewhere between 3% and 20%. A down payment calculator can help you determine a number that works for you.

Step 3: Choose a Loan Term

Select the amount of time during which you’ll pay back your loan, which is typically 15 or 30 years. Longer terms mean lower monthly payments but higher interest costs over the life of the loan.

Step 4: Enter an Interest Rate

Input your desired interest rate to the second or third decimal point. Remember that if you’re buying a very expensive property, it’s a good idea to look at the rates available specifically for a jumbo loan.

Step 5: Add Your Annual Property Tax

Enter the annual property tax rate for the home’s location. The rate is typically shown as a percentage of the property’s value. If your rate is 1.15%, for instance, you would input 1.15.

Benefits of Using a Mortgage Payment Calculator

A mortgage calculator is a powerful tool for assessing your home-buying costs. It can help you estimate what your monthly payments and total interest would be for a specific loan. And it also lets you compare different loans and see how changing elements like the down payment, interest rate, loan term, and even home price can affect what your costs would be, both on a monthly basis and over the long term.

Especially if you’re buying your first home, having access to a free tool that can run the numbers for you quickly and easily is key to making smart, sustainable financial decisions.

Bear in mind that the Michigan mortgage calculator is meant for fixed-rate mortgages. If you choose a type of mortgage loan that has a variable interest rate, you can still use this calculator to estimate your costs, but the results will be less precise because of the fluctuations of a variable rate.

Recommended: The Cost of Living in the U.S.

Deciding How Much House You Can Afford in Michigan

As of late 2025, the median sale price for a home In Michigan is $287,000. If you put down 20% as a down payment on a home at that price and take out a 30-year mortgage at 7.00% for the remainder, your monthly payment for principal and interest would be $1,528.

As you’re figuring out what you can afford, it’s helpful to remember the 28/36 rule, which is used by many lenders. According to this rule, you should pay no more than 28% of your gross monthly income on your mortgage payment and no more than 36% on all debt obligations. For the scenario above, you would need to make about $65,500 annually. Note also that per the 36% part of the rule, you would have approximately $437 per month left to pay off other debts, like car loans and student loans, and that should also factor into your decisions about affordability.

Another way to estimate how much you can pay for a home is to use a home affordability calculator. Also, going through the mortgage preapproval process with a lender can give you a good sense of how much loan you’ll be able to afford.

Current mortgage rates by state.

Compare current home interest rates by state and find a mortgage rate that suits your financial goals.

Select a state to view current rates:

Components of a Mortgage Payment

When you make your mortgage payment each month, the money you send in may help cover several different costs. Mainly, the payment will be applied to the loan’s principal (what you originally borrowed) and the interest that accrues on that amount. Additionally, lenders may build in payments toward your property taxes and homeowners insurance. Depending on your situation, your payment could also cover private mortgage insurance (PMI) and/or homeowners association (HOA) fees.

The kind of mortgage loan you have may also influence what your payment covers, and specialized calculators can be useful here. If you’re considering an FHA loan — one that’s guaranteed by the Federal Housing Administration (FHA) — you might want to use an FHA mortgage calculator, which takes the loan’s mortgage insurance premiums into account. And a VA mortgage calculator can allow for relevant fees when you’re looking at a loan backed by the U.S. Department of Veterans Affairs.

Cost of Living in Michigan

The overall cost of living in Michigan is almost 10% below the national average, which makes it generally one of the country’s more affordable states. That said, as you’re looking into where you might want to settle down in Michigan, it’s smart to remember that different areas can be more or less expensive to live in. The Council for Community and Economic Research’s Cost of Living Index (COLI) ranks the cost of living in major metropolitan areas in the U.S. according to a scale on which the national average is 100. Here’s how Michigan’s major metropolitan areas stack up.

Michigan Cities’ Cost-of-Living Stats
Benton Harbor	83.1
Detroit	103.3
Flint-Genesee County	91.2
Kalamazoo	83.9

Run the numbers on your home loan.

Mortgage calculator

Punch in your home loan amount and a new interest rate, and we’ll estimate your payoff date.

Calculate
Down payment calculator

Enter a few details about your home loan and we’ll provide your monthly mortgage payment.

Calculate
Home affordability calculator

Provide us with a few details and see how much you can afford to spend on a home purchase.

Calculate

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

There are a variety of ways that you may be able to lower the amount of your monthly mortgage bill. Here are a few options.

• Investigate down payment assistance programs. Being able to make a larger down payment can mean a lower monthly bill and potentially no private mortgage insurance (PMI).

• Drop your PMI payments. You can request that your lender cancel these charges once you have 20% equity in your home.

• Appeal overly high property taxes. If you think your property was assessed at too high a value, you can appeal to your tax authority.

• Reduce your homeowners insurance rates. Try raising your deductible, bundling policies to get a discount, or shopping around to find a less expensive insurer.

• Consider an eventual mortgage refinance. If rates drop or your credit improves, you might be able to get a more favorable interest rate down the road.

Recommended: Average Monthly Expenses for One Person

Michigan First-Time Homebuyer Assistance Programs

If you’re buying your first place, it can be a good idea to investigate programs intended to help first-time homebuyers afford their costs. The Michigan State Housing Development Authority offers several programs to assist homebuyers with low-interest loans and down payment assistance, and several cities in Michigan also have assistance available.

While programs like these are often targeted to those just entering the housing market, many other people can often qualify as first-time homebuyers, too — including repeat buyers who haven’t owned a primary residence within the past three years.

The Takeaway

Using this Michigan mortgage calculator can enable you to make savvy home purchasing decisions by letting you see the financial implications of different loans and loan terms. Whether you’re buying a home for the first time or looking to refinance your existing mortgage, good information is essential. With this tool, you’ll get the knowledge you need to make well-informed choices, helping you feel confident that your mortgage will fit comfortably within your budget.

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.

SoFi Mortgages: simple, smart, and so affordable.

View your rate

FAQ

How much should I put down on a mortgage?

A 20% down payment will let you avoid paying private mortgage insurance (PMI), but many buyers put down less — as little as 3% on conventional loans.

Should I choose a 30-year or 15-year mortgage term?

The mortgage term that will work best for you depends on your financial resources and situation. A 30-year term will cost less per month but mean that you’ll pay more in interest charges over the life of the loan. A 15-year term lets you pay off your mortgage faster and lowers your total interest but requires higher monthly payments.

How can I get a lower mortgage interest rate?

You may be able to improve your chances of getting a lower mortgage rate by strengthening your credit score, making a larger down payment, or shopping around to see if different lenders offer more competitive rates.

How much income do you need for a $400,000 mortgage?

If you’ve paid a 20% down payment and your remaining 30=year mortgage at 7.00% interest is $400,000, your monthly payment would be approximately $2,661. According to the 28/36 rule, you would need an annual income of about $114,0000 to afford that.

Learn more about mortgages:

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

*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.

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.

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.
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.

SOHL-Q325-094

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Get prequalified in minutes for a SoFi Home Loan.

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Sep

27

2025

Free Louisiana Home Mortgage Loan Calculator

By Dana Paltao | mortgage | Comments Off

Louisiana Mortgage Calculator

By SoFi Editors | Updated September 26, 2025

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.

Recommended: The Cost of Living in the U.S.

Deciding How Much House You Can Afford

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.

Recommended: Average Monthly Expenses for One Person

Current mortgage rates by state.

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.

Louisiana Cities’ Cost-of-Living Stats
Baton Rouge	92.8
Hammond	85.0
Houma-Terrebonne Parish	92.6
Lafayette	87.3
Lake Charles	86.3
Monroe	88.4
New Orleans	112.4
Shreveport-Bossier City	95.7
Thibodaux-Lafourche Parish	89.6

Run the numbers on your home loan.

Mortgage calculator

Punch in your home loan amount and a new interest rate, and we’ll estimate your payoff date.

Calculate
Down payment calculator

Enter a few details about your home loan and we’ll provide your monthly mortgage payment.

Calculate
Home affordability calculator

Provide us with a few details and see how much you can afford to spend on a home purchase.

Calculate

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.

Louisiana First-Time Homebuyer Assistance Programs

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.

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FAQ

What is a mortgage payment?

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.