1. What is the Louisiana Mortgage Calculator?

Definition: This calculator estimates the total monthly mortgage payment for properties in Louisiana, including principal, interest, taxes, and insurance.

Purpose: It helps homebuyers in Louisiana understand their full monthly housing costs when considering a mortgage.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( M_{total} \) — Total monthly payment (USD)
• \( P \) — Loan principal amount (USD)
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Total number of payments (years × 12)

Explanation: The first part calculates the principal and interest payment, while the second part adds Louisiana's average property tax (0.7%) and estimated insurance ($2000/year).

3. Louisiana-Specific Factors

Details: Louisiana has relatively low property taxes (average 0.7% of home value) compared to national averages. Insurance costs are included at $2000/year but may vary by location.

4. Using the Calculator

Tips: Enter the loan amount, interest rate (default 5%), and loan term (default 30 years). The calculator will show your total monthly payment with tax and insurance included.

5. Frequently Asked Questions (FAQ)

Q1: Why include taxes and insurance?
A: Louisiana lenders typically require escrow for these costs, so they're part of your actual monthly payment.

Q2: Is the 0.7% tax rate accurate for all parishes?
A: This is an average. Actual rates vary by parish from about 0.18% to 1.1%.

Q3: What if my insurance costs more than $2000?
A: In high-risk areas (like flood zones), you may need to adjust this figure upward.

Q4: Does this include PMI?
A: No. Add 0.5%-1% of the loan amount annually if your down payment is less than 20%.

Q5: How does Louisiana's homestead exemption affect this?
A: The first $75,000 of home value is exempt from taxes, which is already factored into the 0.7% average rate.