Mortgage FAQs
How to calculate a mortgage payment
Mortgage payments are calculated based on the loan amount, interest rate, and loan term. The formula takes into account the principal and interest payments over the life of the loan.
Formula for calculating a mortgage payment
The basic formula is: M = P [ i(1 + i)^n ] / [ (1 + i)^n - 1], where M is the monthly payment, P is the principal loan amount, i is the monthly interest rate, and n is the number of payments over the loan's lifetime.
How a mortgage calculator helps you
A mortgage calculator simplifies the complex calculations involved in determining your monthly payments. It allows you to quickly see how different loan amounts, interest rates, and terms affect your payments.
How lenders decide how much you can afford to borrow
Lenders typically use the 28/36 rule: your monthly mortgage payments should not exceed 28% of your gross monthly income, and your total monthly debt payments should not exceed 36% of your gross monthly income.
Typical costs included in a mortgage payment
A typical mortgage payment includes principal, interest, property taxes, and homeowners insurance (PITI). Some loans may also include private mortgage insurance (PMI) or homeowners association (HOA) fees.
Reducing monthly mortgage payments
You can reduce your monthly payments by making a larger down payment, finding a lower interest rate, extending the loan term, or buying a less expensive home. Refinancing can also potentially lower your payments.
Monthly mortgage payments can go up
Your monthly payments can increase if you have an adjustable-rate mortgage (ARM) and interest rates rise, or if your property taxes or homeowners insurance premiums increase.
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Louisiana Mortgage and Refinance Rates Today (APR)
Accurate as of 08/05/2024.
| Product | Interest rate | APR |
|---|---|---|
| 30-year fixed-rate | 6.092% | 6.169% |
| 20-year fixed-rate | 5.801% | 5.886% |
| 15-year fixed-rate | 5.116% | 5.224% |
| 10-year fixed-rate | 5.719% | 5.948% |
| 7-year ARM | 6.030% | 7.109% |
| 5-year ARM | 6.144% | 7.420% |
| 30-year fixed-rate FHA | 5.969% | 6.741% |
| 30-year fixed-rate VA | 5.219% | 5.588% |
Data source: ©Zillow, Inc. 2006 – 2021. Use is subject to the Terms of Use
Average Property Tax in Louisiana Counties
Taking U.S. Census data, NerdWallet has crunched the numbers to help you understand what property tax rate you can expect to pay on your future home in Louisiana. Because assessed values aren't frequently updated, you may pay a higher rate at first but eventually you'll pay a similar rate.
| County | Avg. property tax rate | Avg. home value |
|---|---|---|
| Acadia Parish | 0.28% | $97,500 |
| Allen Parish | 0.18% | $84,800 |
| Ascension Parish | 0.46% | $211,000 |
| Assumption Parish | 0.33% | $114,600 |
| Avoyelles Parish | 0.18% | $90,600 |
| Beauregard Parish | 0.27% | $115,200 |
| Bienville Parish | 0.29% | $76,000 |
| Bossier Parish | 0.57% | $170,400 |
| Caddo Parish | 0.71% | $149,000 |
| Calcasieu Parish | 0.42% | $165,900 |
| Caldwell Parish | 0.21% | $67,800 |
| Cameron Parish | 0.34% | $110,900 |
| Catahoula Parish | 0.13% | $78,700 |
| Claiborne Parish | 0.24% | $74,100 |
| Concordia Parish | 0.21% | $78,500 |
| De Soto Parish | 0.25% | $110,000 |
| East Baton Rouge Parish | 0.58% | $191,200 |
| East Carroll Parish | 0.52% | $68,200 |
| East Feliciana Parish | 0.19% | $124,100 |
| Evangeline Parish | 0.24% | $90,000 |
| Franklin Parish | 0.19% | $83,200 |
| Grant Parish | 0.28% | $93,600 |
| Iberia Parish | 0.35% | $122,600 |
| Iberville Parish | 0.3% | $127,500 |
| Jackson Parish | 0.31% | $84,400 |
| Jefferson Davis Parish | 0.28% | $101,800 |
| Jefferson Parish | 0.55% | $184,500 |
| Lafayette Parish | 0.51% | $188,000 |
| Lafourche Parish | 0.35% | $156,400 |
| LaSalle Parish | 0.34% | $76,700 |
| Lincoln Parish | 0.5% | $145,900 |
| Livingston Parish | 0.46% | $163,200 |
| Madison Parish | 0.24% | $64,100 |
| Morehouse Parish | 0.41% | $84,900 |
| Natchitoches Parish | 0.37% | $114,100 |
| Orleans Parish | 0.8% | $227,800 |
| Ouachita Parish | 0.45% | $151,300 |
| Plaquemines Parish | 0.38% | $165,900 |
| Pointe Coupee Parish | 0.25% | $124,500 |
| Rapides Parish | 0.43% | $142,200 |
| Red River Parish | 0.17% | $85,900 |
| Richland Parish | 0.18% | $86,900 |
| Sabine Parish | 0.21% | $84,200 |
| St. Bernard Parish | 0.38% | $139,200 |
| St. Charles Parish | 0.52% | $185,800 |
| St. Helena Parish | 0.15% | $77,400 |
| St. James Parish | 0.4% | $136,400 |
| St. John the Baptist Parish | 0.35% | $152,800 |
| St. Landry Parish | 0.18% | $109,100 |
| St. Martin Parish | 0.3% | $114,200 |
| St. Mary Parish | 0.4% | $97,000 |
| St. Tammany Parish | 0.79% | $214,300 |
| Tangipahoa Parish | 0.36% | $157,500 |
| Tensas Parish | 0.2% | $62,200 |
| Terrebonne Parish | 0.33% | $151,100 |
| Union Parish | 0.3% | $88,700 |
| Vermilion Parish | 0.31% | $105,700 |
| Vernon Parish | 0.21% | $116,600 |
| Washington Parish | 0.32% | $84,600 |
| Webster Parish | 0.31% | $81,600 |
| West Baton Rouge Parish | 0.4% | $177,000 |
| West Carroll Parish | 0.14% | $79,400 |
| West Feliciana Parish | 0.44% | $209,600 |
| Winn Parish | 0.23% | $72,700 |