1. What is a Louisiana Mortgage Refinance Calculator?

Definition: This calculator determines your new monthly payment when refinancing a mortgage in Louisiana.

Purpose: Helps Louisiana homeowners evaluate potential savings from refinancing their mortgage at different interest rates and terms.

2. How Does the Calculator Work?

The calculator uses the standard mortgage formula:

Where:

• \( M \) — Monthly payment (USD)
• \( P \) — Loan principal (USD)
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Number of payments (loan term in years × 12)

Explanation: The formula accounts for both principal and interest payments over the life of the loan.

3. Importance of Refinance Calculation

Details: Proper calculation helps determine if refinancing will lower your monthly payment, reduce total interest, or shorten your loan term.

4. Using the Calculator

Tips: Enter your current loan balance, the new interest rate you qualify for, and the desired loan term (typically 15 or 30 years).

5. Frequently Asked Questions (FAQ)

Q1: What are typical closing costs for refinancing in Louisiana?
A: Louisiana refinance closing costs typically range from 2% to 5% of the loan amount.

Q2: How does Louisiana's mortgage tax affect refinancing?
A: Louisiana charges $0.35 per $100 of mortgage amount, which applies to refinances.

Q3: What's the break-even point for refinancing?
A: Divide total closing costs by monthly savings to determine how many months until refinancing pays for itself.

Q4: Are there Louisiana-specific refinance programs?
A: Yes, programs like the Louisiana Housing Corporation offer refinance options for qualified homeowners.

Q5: How often can I refinance in Louisiana?
A: There's no legal limit, but lenders typically require 6-12 months between refinances.