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Mortgage rates in Louisiana
Rates that historically follow the national average.
Mortgage rates during the coronavirus
As mortgage rates fall to record lows in the wake of COVID-19, our partners are seeing an increase in demand for loans and refinancing. As they work through this influx of applications, you may see rates that are higher than expected — or no rates at all. We recommend comparing offers from multiple lenders to ensure you're getting the best deal possible.
With a full selection of mortgage products to choose from and 30-year loans averaging 4.762%, Louisiana borrowers can expect rates to follow the national average into 2020.
What's in this guide?
How much do Louisiana rates vary?
Average 30-year mortgage rates in Louisiana ranged from 4.651% to 4.853% in 2018. Many factors contribute to determining your interest rate. For example, if you choose a conventional loan, it typically has a higher interest rate than a government-insured VA loan, but fewer borrower and property constraints.
2018 average rates in Louisiana by loan type
| Loan type | 15-year average rate | 30-year average rate |
|---|---|---|
| Conventional | 4.749% | 4.816% |
| FHA | 4.342% | 4.853% |
| VA | 3.910% | 4.651% |
| USDA | N/A | 4.727% |
Based on data from ffiec.cfpb.gov.
A slight difference in interest can mean a savings over the life of the loan. For instance, let’s say you borrow $175,000 for a conventional mortgage with a 30-year term. At a 4.816% rate, you could pay about $919 a month, excluding taxes, fees and other costs specific to your loan.
But if you qualify for a VA loan at the average 4.651% rate, your monthly payment could be slightly lower at $902. Just $17.39 each month could save you $6,259 over the life of the loan.
Which way are rates trending in Louisiana?
Louisiana mortgage rates should hold steady, slightly below the 4% mark.
Bankrate’s chief financial analyst, Greg McBride, predicts national rates to average around 4% in 2020. Nationwide housing agencies expect rates to average about 3.7%. Since Louisiana mortgage rates have historically followed the national average, borrowers can expect to see rates at or just below the 4% mark.
Compare mortgage rates throughout Louisiana
Average Louisiana mortgage rates tend to follow the rest of the country. But there can be slight differences in rates depending on where the home is located. Home prices can also fluctuate depending on the neighborhood.
Even if you have the same loan balance as someone in the next city or neighborhood, the difference in the interest rate can significantly increase how much you pay monthly. Finding out the average mortgage rates for the area you want to live in can help you decide how much home you can afford.
We sifted through the data from the Home Mortgage Disclosure Act to provide a general picture of what you might pay on the average 30-year fixed-rate mortgage in metropolitan areas of Louisiana. Rates and amounts don’t account for taxes or other mortgage-specific charges.
| Metropolitan statistical area | Average mortgage rate | Median loan amount | Estimated monthly cost |
|---|---|---|---|
| Alexandria | 4.811% | $155,000 | $810 |
| Baton Rouge | 4.800% | $195,000 | $1,020 |
| Hammond | 4.784% | $175,000 | $920 |
| Houma-Thibodaux | 4.720% | $165,000 | $860 |
| Lafayette | 4.760% | $175,000 | $910 |
| Lake Charles | 4.824% | $185,000 | $970 |
| Monroe | 4.744% | $165,000 | $860 |
| New Orleans-Metairie | 4.790% | $195,000 | $1,029 |
| Shreveport-Bossier City | 4.824% | $175,000 | $920 |
Based on data from ffiec.cfpb.gov.
How to get the best mortgage rate in Louisiana
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.
Historical mortgage interest rates in Louisiana
Bottom line
Lenders set their own rates. Even though Louisiana rates tend to follow the national average, you should look at each lender individually. Give yourself the best shot of getting a competitive rate by comparing mortgages and lenders.
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