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Mortgage rates in Louisiana
Interest rates on a 30-year $300,000 conventional mortgage start at around 3.625%
If you have a credit score between 700 and 719 and can put 5% down, you’ll generally pay about 3.625% for a 30-year conventional loan with a fixed interest rate on a $350,000 home. But how much interest you pay for your Louisiana home will depend on several factors, including your credit score, loan amount and lender.
Rates were last checked on January 10 and are from the Consumer Financial Protection Bureau (CFPB) website.
Your credit score affects the rate you’ll get
People with higher credit scores generally get lower interest rates because lenders assume they’re less likely to stop paying a mortgage. Here are the most common interest rates in Louisiana by mortgage amount, according to the Consumer Financial Protection Bureau (CFPB).
| Credit score | $200,000 mortgage | $300,000 mortgage | $400,000 mortgage | $500,000 mortgage |
|---|---|---|---|---|
| 620-639 | 4.313% | 4.250% | 4.250% | 4.250% |
| 640-659 | 4.250% | 4.125% | 4.125% | 4.000% |
| 660-679 | 4.063% | 4.125% | 4.000% | 4.000% |
| 680-699 | 3.875% | 3.875% | 3.750% | 3.750% |
| 700-719 | 3.750% | 3.750% | 3.625% | 3.625% |
| 720-739 | 3.625% | 3.625% | 3.500% | 3.500% |
| 740-759 | 3.625% | 3.625% | 3.500% | 3.500% |
| 760-779 | 3.625% | 3.625% | 3.500% | 3.500% |
| 780-799 | 3.625% | 3.625% | 3.500% | 3.500% |
| 800+ | 3.625% | 3.625% | 3.500% | 3.500% |
*Based on a 10% down payment for a 30-year fixed-rate conventional mortgage
Interest rates vary by lender
Interest rates are affected by the economy and the federal funds rate, or the rate that banks charge each other for overnight loans. But they’re also affected by individual lenders, which can have differing overhead costs, profit margins and credit score requirements.
Comparing lenders can help you find the best deal. Select See rates to provide the company with basic property and financial details for personalized rates.
Interest rates also vary by loan type
The type of loan you get can also affect how much you pay for your Louisiana home. 15-year mortgages generally offer lower interest rates than 30-year mortgages, and you’ll see different rates for conventional loans than government loans.
| Loan type | $200,000 mortgage | $300,000 mortgage | $400,000 mortgage | $500,000 mortgage |
|---|---|---|---|---|
| 15-year conventional | 2.750% | 2.625% | 2.625% | 2.625% |
| 30-year conventional | 3.750% | 3.750% | 3.625% | 3.625% |
| 15-year FHA | 3.125% | 2.938% | Not eligible | Not eligible |
| 30-year FHA | 3.563% | 3.625% | Not eligible | Not eligible |
| 15-year VA | 3.313% | 3.000% | 2.938% | 2.875% |
| 30-year VA | 3.750% | 3.625% | 3.500% | 3.500% |
*Based on a 10% down payment, fixed interest rate and 710 credit score
Research ahead of time to get the best rates
Do some research and build your credit to ensure you get the best rate possible.
- Look at different loan products. Lenders often offer several different kinds of loans, all with various features. Look at all options to identify the best choice for your needs.
- Nail down your credit. Lenders love borrowers with good credit. If you can, work toward paying off existing debt and increasing your credit score.
- Calculate closing costs. Closing costs in Louisiana average 3.41% of the home purchase price, which can add to the total cost. Compare closing costs when selecting your lender.
Home prices in Louisiana are rising, but less than the US average
According to Zillow, the average home price in Louisiana increased by 7.1% in the 12 months prior to June 2021. But while prices are rising in the Bayou State, price growth is lagging behind the overall US growth rate, which was 13.2% over the same time period.
But there are some notable standouts. The cities of Mora, Plain Dealing, Hodge, Fisher, Edgard and Saline are set to see prices increase over 13% by next June. Aside from these, most cities will see prices increase between the low and high single-digits. In New Orleans, prices are set to jump 9.5%, and in Baton Rouge, 9.6%.
5 fast facts about Louisiana’s housing market
If you’re looking to buy a home in Louisiana, here are five facts to consider:
- The average price of a typical home in Louisiana is $187,844 as of June 2021, which is 36% less than the national average.
- According to 2019 data from the US Census Bureau, the average monthly homeownership cost in Iowa is $1,295 with a mortgage — $300 cheaper than the national average.
- Closing costs in Louisiana are 1.86% with taxes on average, with most buyers paying between $3,827 and $3,502 for a home.
- According to SmartAsset, Louisianians pay an average of 0.53% in property taxes for assessed value, which is the fifth lowest rate in the US.
- The Louisiana Housing Corporation offers first-time homebuyer programs, providing financial assistance for down payments and closing costs.
Bottom line
Mortgage rates in Louisiana vary by loan type, and factors like your credit score and lender affect what rate you get. But factors like your credit score and lender affect what rate you get. Compare mortgage lenders and programs to find one that best fits your homeownership goals.
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