Overview of Louisiana Mortgages
Louisiana is a multicultural state rich in history. In terms of population, Louisiana is right in the middle of the country. In a similar fashion, Louisiana's mortgage rates have also traditionally stuck close to the national average.
|30 year fixed||3.13%||3.18%||-0.05|
|15 year fixed||2.50%||2.50%||0.00|
|30 yr fixed mtg refi||3.18%||3.18%||0.00|
|15 yr fixed mtg refi||2.59%||2.48%||+0.11|
|7/1 ARM refi||3.63%||3.63%||0.00|
|15 yr jumbo fixed mtg refi||2.50%||2.50%||0.00|
National Mortgage Rates
Historical Mortgage Rates in Louisiana
Louisiana Mortgage Rates Quick Facts
- Median Home Value: $172,100 (U.S. Census Bureau)
- Loan Funding Rate: 50.82% (CFPB)
- Homeownership Rate: 65.6% (St. Louis Fed)
- Median Monthly Homeownership Costs: $1,295 (U.S. Census Bureau)
Louisiana is renowned for its spicy cuisine, bayous and New Orleans’ French Quarter. For homeowners and prospective buyers in the Pelican State, mortgage rates are typically close to the national average.
A financial advisor in Louisiana can help you plan for the homebuying process. Financial advisors can also help with investing and financial plans, including tax, retirement and estate planning, to make sure you are preparing for the future.
Louisiana Historic Mortgage Rates*
|Year||Louisiana Rate||U.S. Rate|
*The FHFA stopped reporting new data in 2018.
Louisiana Mortgages Overview
Whether you are looking to become a resident of New Orleans or settle down in the capital city of Baton Rouge, you should determine a budget based on how much house you can afford. You may also want to look into getting mortgage preapproval from a lender as it will streamline the process of securing a home.
The conforming limit for every Louisiana county is at the standard $548,250. The FHA loan limits are also uniform at $356,362. This indicates that homes in the Bayou State are generally affordable.
Conforming and FHA Loan Limits by County
|County||Conforming Limit||FHA Limit|
|East Baton Roug||$548,250||$356,362|
|St. John The Ba||$548,250||$356,362|
|West Baton Rouge||$548,250||$356,362|
Disclosure laws in Louisiana require that sellers disclose the physical condition of the home as well as any defects. A home inspection is still the best way to feel confident in a property purchase.
30-Year Fixed Mortgage Rates in Louisiana
If you are looking to become a homeowner in the Bayou State, one of your loan options is a 30-year fixed-rate mortgage. This reliable home loan option gives you three decades to pay off your mortgage. Because your interest rate will remain the same for the duration of the loan, you know exactly how much your monthly payments will be, which is helpful for budgeting. Another option is a 15-year fixed-rate mortgage which will allow you to pay off your loan faster and has a lower interest rate, but your monthly payments will be higher with this option.
The average Louisiana rate for a fixed 30-year mortgage is 2.85% (Zillow, Jan. 2021).
Louisiana Jumbo Loan Rates
Every county in Louisiana has the standard conforming loan limit of $548,250. Conforming loans can be re-sold on the secondary mortgage market and qualify for standard interest rates. If you need to take out a home loan in Louisiana that is bigger than $548,250, it will be considered a “jumbo loan.” You should be aware that jumbo loans are accompanied by higher interest rates.
Lenders consider jumbo loans to be riskier than conforming loans because more money is on the line. The higher interest rates are meant to compensate for that additional risk. However, jumbo loan rates are currently quite low.
The average jumbo loan rate in Louisiana is 2.56% (Zillow, Jan. 2021).
Louisiana ARM Loan Rates
An adjustable-rate mortgage (ARM) stands in contrast to a fixed-rate mortgage in the sense that the interest rate can change over the life of the loan. Usually an ARM will come with a lower interest rate for an introductory period that lasts somewhere between one and 10 years. After that initial period, the interest rate can go up or down, though it will generally increase.
If you are considering an ARM, you should know that the loan’s terms will spell out how many times the interest rate can change and the highest possible rate it can reach. It’s a wise idea to assess whether the maximum potential interest rate is one that you can afford.
The average rate for a 5/1 ARM in Louisiana is 3.00% (Zillow, Jan. 2021).
Louisiana Mortgage Resources
Do you need assistance purchasing a Louisiana home? There are resources out there to help you in your mortgage process. You can learn more about the Louisiana Housing Corporation, the Office of Community Development and the USDA Rural Development program at their websites.
|Resource||Problem or Issue||Who Qualifies|
|Louisiana Housing Corporation||Homebuyer education and counseling, down payment assistance, home loans, mortgage credit program||Homebuyers who earn 115% or less of the area median income, certain targeted areas have more resources available than others|
|State of Louisiana Division of Administration - Office of Community Development (Louisiana Recovery Act)||Administers federal grants for units of general local government to further develop storm impacted communities inhabited low to moderate income families.||Units of local government and nonprofit organizations in federally designated areas of the state.|
|USDA Rural Development - Single family loans||Offers payment assistance to increase an applicant’s repayment ability.||Applicants must be without decent, safe and sanitary housing; Be unable to obtain a loan from other resources on terms and conditions that can reasonably be expected to meet; Agree to occupy the property as your primary residence; Have the legal capacity to incur a loan obligation; Meet citizenship or eligible noncitizen requirements; Not be suspended or debarred from participation in federal programs.|
The United States Department of Agriculture Rural Development offers programs to develop rural communities in Louisiana by providing aid for affordable housing for residents. Loans and grants are available for people hoping to buy a home.
Louisiana Mortgage Taxes
Homeowners who itemize their deductions when they file federal income taxes are allowed to deduct the mortgage interest they pay from their taxable income. In Louisiana, homeowners can include that deduction on their state income taxes as well. Also note that unlike some other states, Louisiana does not charge real estate transfer taxes which is a nice bonus for homebuyers here.
Louisiana Mortgage Refinance
If you’ve decided it’s time for you to refinance, remember that you are not obligated to continue working with the lender who issued your current mortgage (though of course you can). Be aware that you are free to shop around with other refinance lenders and compare rates to find one that truly works for you.
You can also look into the High Loan-to-Value Refinance Option from Fannie Mae.
Best Places To Get A Mortgage
SmartAsset’s interactive map highlights the best counties in the U.S. (and in each state) for securing a home mortgage. Hover over states and counties to see rankings and data points for each region, or use the map’s tabs to view the top counties for each of the factors included in our analysis.
Methodology In order to determine the best places in the country to get a mortgage, our study compared four factors, including overall borrowing costs, likelihood of securing a mortgage, property taxes and annual mortgage payments.
To calculate the overall borrowing costs, we analyzed the expected costs throughout the first five years for a $200,000 mortgage with a 20% down payment, including closing costs. We calculated the ease of getting a mortgage as the ratio of mortgage applications to mortgage originations (secured mortgages) in each county. Annual mortgage payments are a measure of the annual principal and interest payments for a $200,000 loan in that location using average mortgage rates in each county.
Finally, we ranked locations based on these four factors, giving equal weight to each factor. The areas with the lowest average rankings are the best places to get a mortgage.
Sources: Mortgage Bankers Association, US Census Bureau 2018 5-Year American Community Survey, Informa, Bankrate, government websites, SmartAsset